Working Capital Management and Liquidity Reserves: The Context of Risk Retention
Working capital management belongs to most relevant company's decisions, as it influences both profitability and liquidity. In the liquidity context, the paper offers a broader view on the scope of working capital management decisions, by expanding its linkages with risk management. In particul...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2016-01-01
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| Series: | Journal of Economics and Management |
| Subjects: | |
| Online Access: | https://www.ue.katowice.pl/fileadmin/user_upload/wydawnictwo/JEM_Artyku%C5%82y_1_30/JEM_23/01.pdf |
| _version_ | 1819048979573243904 |
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| author | Monika Wieczorek-Kosmala Anna Doś Joanna Błach Maria Gorczyńska |
| author_facet | Monika Wieczorek-Kosmala Anna Doś Joanna Błach Maria Gorczyńska |
| author_sort | Monika Wieczorek-Kosmala |
| collection | DOAJ |
| description | Working capital management belongs to most relevant company's decisions, as it influences both profitability and liquidity. In the liquidity context, the paper offers a broader view on the scope of working capital management decisions, by expanding its linkages with risk management. In particular, the paper develops a conceptual model of the analysis of company's liquidity reserves, which is relevant for establishing company's risk retention capabilities. In the empirical layer, the paper examines the sample of Polish listed companies with regard to the magnitude, relevance and time-suitability of liquidity reserves. The empirical verification is also directed on the identification of these areas of working capital management which are relevant for sourcing liquidity reserves. In this aspect, cluster analysis and factor analysis was implemented. The study found that the majority of the examined companies hold liquidity reserves. As the most relevant aspect of working capital management the maintenance of financial stability has emerged. |
| first_indexed | 2024-12-21T11:24:52Z |
| format | Article |
| id | doaj.art-b27b9694cd414bd4851d35cb7d3b5468 |
| institution | Directory Open Access Journal |
| issn | 1732-1948 |
| language | English |
| last_indexed | 2024-12-21T11:24:52Z |
| publishDate | 2016-01-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Journal of Economics and Management |
| spelling | doaj.art-b27b9694cd414bd4851d35cb7d3b54682022-12-21T19:05:41ZengSciendoJournal of Economics and Management1732-19482016-01-0123520Working Capital Management and Liquidity Reserves: The Context of Risk RetentionMonika Wieczorek-Kosmala0Anna Doś1Joanna Błach2Maria Gorczyńska3University of Economics in KatowiceUniversity of Economics in KatowiceUniversity of Economics in KatowiceUniversity of Economics in KatowiceWorking capital management belongs to most relevant company's decisions, as it influences both profitability and liquidity. In the liquidity context, the paper offers a broader view on the scope of working capital management decisions, by expanding its linkages with risk management. In particular, the paper develops a conceptual model of the analysis of company's liquidity reserves, which is relevant for establishing company's risk retention capabilities. In the empirical layer, the paper examines the sample of Polish listed companies with regard to the magnitude, relevance and time-suitability of liquidity reserves. The empirical verification is also directed on the identification of these areas of working capital management which are relevant for sourcing liquidity reserves. In this aspect, cluster analysis and factor analysis was implemented. The study found that the majority of the examined companies hold liquidity reserves. As the most relevant aspect of working capital management the maintenance of financial stability has emerged.https://www.ue.katowice.pl/fileadmin/user_upload/wydawnictwo/JEM_Artyku%C5%82y_1_30/JEM_23/01.pdfManagement of working capitalFinancial liquidityProfitabilityStock market companies |
| spellingShingle | Monika Wieczorek-Kosmala Anna Doś Joanna Błach Maria Gorczyńska Working Capital Management and Liquidity Reserves: The Context of Risk Retention Journal of Economics and Management Management of working capital Financial liquidity Profitability Stock market companies |
| title | Working Capital Management and Liquidity Reserves: The Context of Risk Retention |
| title_full | Working Capital Management and Liquidity Reserves: The Context of Risk Retention |
| title_fullStr | Working Capital Management and Liquidity Reserves: The Context of Risk Retention |
| title_full_unstemmed | Working Capital Management and Liquidity Reserves: The Context of Risk Retention |
| title_short | Working Capital Management and Liquidity Reserves: The Context of Risk Retention |
| title_sort | working capital management and liquidity reserves the context of risk retention |
| topic | Management of working capital Financial liquidity Profitability Stock market companies |
| url | https://www.ue.katowice.pl/fileadmin/user_upload/wydawnictwo/JEM_Artyku%C5%82y_1_30/JEM_23/01.pdf |
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