Reasons of the Support of the Financial Liquidity in the Firm
FINANSE I BANKOWOSC NR 11, D. Misinska, M. Myszkowska, eds., pp. 115-124, Wroclaw, 2003
13 Pages Posted: 18 Jul 2007
Industrial companies invest large sums in the support of financial liquidity. The article presents reasons of the support of the financial liquidity. They consist of the possibility of the saving on transaction costs, provisions before expensive and negative results of the lack of liquidity, possibilities of executing of unusually profitable sensitive investments on the time and the possibility of the use properly high-level of the liquidity in the aim of financing its own activity and the investment.
Notes: Downloadable document is in Polish.
Keywords: 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: Suggested Citation