Food Processing Firms Inventory Levels in Hard Times. 2004-2012 Slovak, Czech and Polish Enterprises Case

10 Pages Posted: 10 Jan 2015

See all articles by Manuela Raisova

Manuela Raisova

Technical University in Košice (TUKE)

Jan Buleca

Technical University in Košice (TUKE)

Grzegorz Michalski

Uniwersytet Ekonomiczny we Wrocławiu - Faculty of Engineering and Economics

Date Written: January 30, 2014

Abstract

So called "hard times" are in our paper connected with post-crisis situation. FLIEM model predicts that before the crisis, during the crisis and after the crisis phases are connected with higher levels of inventory in food processing enterprises. Investments in current assets of the businesses are a hedging instrument against individual risk sensitivity that is higher in crisis affected times. The paper aim is to compare real economy data with FLIEM predictions. The FLIEM model expected that inventories to total assets indicator should be treated as forecasting indicator about future risk sensitivity of the entities. It could be also suitable as forewarning impulse of future standing of whole food processing part of economy.

Keywords: Entepreneurial liquidity; value-based working capital management; business environment; inventory levels; current assets; risk management; inventory management, inverse vertical ratio; holdings; determinants; governance; strategy; options

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

Suggested Citation

Raisova, Manuela and Buleca, Jan and Michalski, Grzegorz, Food Processing Firms Inventory Levels in Hard Times. 2004-2012 Slovak, Czech and Polish Enterprises Case (January 30, 2014). Available at SSRN: https://ssrn.com/abstract=2547449 or http://dx.doi.org/10.2139/ssrn.2547449

Manuela Raisova

Technical University in Košice (TUKE) ( email )

Letná 1/9
Košice, 04200
Slovakia

Jan Buleca

Technical University in Košice (TUKE) ( email )

Letná 1/9
Košice, 04200
Slovakia

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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