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

See all articles by Grzegorz Michalski

Grzegorz Michalski

Technical University in Košice (TUKE); Uniwersytet Ekonomiczny we Wrocławiu - Faculty of Engineering and Economics

Abstract

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.

Note: 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

Michalski, Grzegorz and Michalski, Grzegorz, 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, Available at SSRN: https://ssrn.com/abstract=1000471

Grzegorz Michalski (Contact Author)

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

ul. Komandorska 118-120
Wroclaw, 53-345
Poland

Technical University in Košice (TUKE) ( email )

Letná 1/9
Košice, 04200
Slovakia
+48791214963 (Phone)

HOME PAGE: http://michalskig.com/

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