After-Crisis Relation between General Economic Condition and Liquidity Management: Financial Liquidity Investment Efficiency Model (FLIEM) Use to Diagnose Polish Economics Standing

18 Pages Posted: 29 Aug 2012

See all articles by Grzegorz Michalski

Grzegorz Michalski

Uniwersytet Ekonomiczny we Wrocławiu - Faculty of Engineering and Economics

Date Written: August 27, 2012

Abstract

Enterprise liquidity management can tell us many about the general condition of the firms using it. It is because liquidity is held in enterprises not only because of transactions but also because of entrepreneurs fear and hopes about the future. Paper try to use financial liquidity efficiency model (FLIEM) to diagnose if after 2008 world "financial crisis" changes in general economic conditions modified Polish enterprises strategies in liquidity management. Next the interesting matter is, in what destination eventual change leaded? To help to answer at the question is to check how financial liquidity Polish enterprises indicators like CURRAT, QUIRAT, CASRAT, and other liquidity ratios changed after 2008 period? That indicators as believed are forecasters of firm problems if are "too small". Finally, there is popular myth about Poland that she was "lonely green inland on red European ocean of crisis", so used in paper Polish enterprises data for 2008-2010 years, will be used to prove or falsify that idea.

Keywords: liquidity, cost of capital, firm value

JEL Classification: G32, G31, D24

Suggested Citation

Michalski, Grzegorz, After-Crisis Relation between General Economic Condition and Liquidity Management: Financial Liquidity Investment Efficiency Model (FLIEM) Use to Diagnose Polish Economics Standing (August 27, 2012). 25th Australasian Finance and Banking Conference 2012. Available at SSRN: https://ssrn.com/abstract=2137173 or http://dx.doi.org/10.2139/ssrn.2137173

Grzegorz Michalski (Contact Author)

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

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

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