The Dynamic Measures of Financial Liquidity

Prace Naukowe Akademii Ekonomicznej we Wroclawiu / Ekonometria, p. 185-199, 2003

18 Pages Posted: 17 Jul 2007

See all articles by Grzegorz Michalski

Grzegorz Michalski

Uniwersytet Ekonomiczny we Wrocławiu - Faculty of Engineering and Economics


Firms hold liquidity for a variety of different reasons. Generally, liquidity balances held in a firm can be called considered, precautionary, speculative, transactional and intentional. The first are the result of management anxieties. Managers fear the negative part of the risk and hold liquidity to hedge against it. Second, liquidity balances are held to use chances that are created by the positive part of the risk equation. Next, liquidity balances are the result of the operating needs of the firm. The correct liquidity management is addicted to this, whether the management of the firm knows how much it has. An object of the article they are dynamical measures of financial liquidity.

Note: Downloadable document is in Polish.

Keywords: Liquidity measures, Demand for Liquidity, Liquidity balances, Risk, Uncertainty, Real Options, Option Value of Liquidity, Short-Term Financial Management, Working Capital Management

JEL Classification: G39, G32, G11, M11, D81, O16, P33, P34

Suggested Citation

Michalski, Grzegorz, The Dynamic Measures of Financial Liquidity. Available at SSRN:

Grzegorz Michalski (Contact Author)

Uniwersytet Ekonomiczny we Wrocławiu - Faculty of Engineering and Economics ( email )

ul. Komandorska 118-120
Wroclaw, 53-345

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