The Typical Levels of Liquidity Measures in Small Firms

Michalski, Grzegorz

The Typical Levels of Liquidity Measures in Small Firms

Uwarunkowania rynkowe rozwoju mikro i malych przedsiebiorstw, ZNUS No. 458, EPU No. 10, pp. 278-285, A. Bielawska, Szczecin, 2007

11 Pages Posted: 23 Aug 2007

See all articles by Grzegorz Michalski

Grzegorz Michalski

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

Abstract

The correct liquidity management depends on owner knowledge about true level of liquidity. An object of the article they are static measures of the financial liquidity, and with their advantages and with defects. Liquidity measures for micro and small firms are higher than adequate measures for larger firms. Some researchers are ready to think that it is sufficient to tell that such micro and small firms characterizes good level of solvency. Article shows why such conclusion not always is safe.

Note: Downloadable PDF is in Polish language.

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

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

Suggested Citation: Suggested Citation

Michalski, Grzegorz and Michalski, Grzegorz, The Typical Levels of Liquidity Measures in Small Firms. Uwarunkowania rynkowe rozwoju mikro i malych przedsiebiorstw, ZNUS No. 458, EPU No. 10, pp. 278-285, A. Bielawska, Szczecin, 2007, Available at SSRN: https://ssrn.com/abstract=1007598