scholarly journals FINANCIAL LIQUIDITY MANAGEMENT STRATEGIES IN POLISH ENERGY COMPANIES

2020 ◽  
Vol 10 (3) ◽  
pp. 365-368
Author(s):  
Grzegorz Zimon
Keyword(s):  
Management Strategies ◽  
Liquidity Management ◽  
Financial Liquidity ◽  
Energy Companies

scholarly journals An Analysis of the Financial Liquidity Management Strategy in Construction Companies Operating in the Podkarpackie Province

Risks ◽  
2021 ◽  
Vol 10 (1) ◽  
pp. 5
Author(s):  
Grzegorz Zimon ◽  
Joanna Nakonieczny ◽  
Katarzyna Chudy-Laskowska ◽  
Magdalena Wójcik-Jurkiewicz ◽  
Konrad Kochański
Keyword(s):  
Financial Management ◽  
Management Strategy ◽  
Management Strategies ◽  
National Court ◽  
Liquidity Management ◽  
Conservative Strategy ◽  
Construction Company ◽  
Construction Companies ◽  
Financial Liquidity ◽  
The Impact

The activity of each construction company in conditions of high competitiveness is exposed to a number of risks that make it difficult to maintain high financial liquidity. In order to provide the continuity of ongoing economic processes and to be able to develop, entities are forced to build optimal financial management strategies for them. Enterprises can choose between a conservative, moderate and aggressive strategy, which is largely determined by the way they manage their current assets and short-term liabilities. In the case of construction companies, it is also not without significance that they are particularly sensitive to fluctuations in the economic situation and changes in the macroeconomic environment, which imply the availability of funds. The purpose of this paper is to analyze the financial liquidity management strategy of construction sector Polish enterprises from the Podkarpackie Province in 2017–2019 and the impact of this strategy on the profitability of the surveyed entities. In order to achieve the goal, the issues related to the classification of financial liquidity and individual liquidity management strategies are discussed. The issues and the goal set determined the choice of research methods. Literature studies, the Mann–Whitney U test, cluster analysis and Ward’s method were used. The research was carried out on a group of the 10 largest construction companies from the Podkarpackie Province. The selection of entities for the research was deliberately based on enterprises that submit their financial statements to the National Court Register. The conducted research showed that small and large enterprises applied different liquidity management policies even though they operate in the same industry and region. The small entities preferred a conservative strategy, while large entities preferred a moderate strategy. The existence of an inverse relationship between the phenomenon of financial liquidity and profitability of economic entities was also confirmed.

Central Bank Liquidity Management and the Signal Extraction Problem on the Money Market / Die Liquiditätssteuerung der Notenbank und das Signal-extraktionsproblem am Geldmarkt

2000 ◽  
Vol 220 (3) ◽  
pp. 284-301
Author(s):  
Ulrich Bindseil
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Interest Rates ◽  
Term Structure ◽  
Management Strategies ◽  
Money Market ◽  
Signal Extraction ◽  
Maintenance Period ◽  
Liquidity Management ◽  
Expectation Theory

Summary Understanding the factors determining overnight rates is crucial both for central bankers and private market participants, since, assuming the validity of the expectation theory of the term structure of interest rates, expectations with regard to this “monadic” maturity should determine longer term rates, which are deemed to be relevant for the transmission of monetary policy. The note proposes a simple model of the money market within a two-day long reserve maintenance period to derive relationships between the relevant quantities, expectations concerning these quantities for the rest of the reserve maintenance period, and overnight rates. It is argued that a signal extraction problem faced by banks when observing quantities such as their aggregate reserve holdings and allotment amounts of monetary policy operations is at the core of these relationships. The usefulness of the model is illustrated by applying it to the analysis of three alternative liquidity management strategies of a central bank.

scholarly journals A Look at the Liquidity Management Practices of Banks in South Africa

2017 ◽  
Vol 9 (3(J)) ◽  
pp. 113-120
Author(s):  
Tafirei Mashamba ◽  
Farai Kwenda
Keyword(s):  
South Africa ◽  
South African ◽  
Management Practices ◽  
Management Strategies ◽  
Generalized Method Of Moments ◽  
Adjustment Costs ◽  
Capital Adequacy ◽  
Loan Loss ◽  
Liquidity Management ◽  
Balance Sheets

In an effort to strengthen bank liquidity-risk management practices, the Basel Committee proposed new liquidity requirements for banks in 2010 under the Basel III framework. However, despite the good intentions of the liquidity requirements the new regulations are likely to present some challenges for banks in the course of managing their liquidity. However, before any inference can be made about the possible implications of the liquidity standards on bank liquidity management practices, it is imperative to have insight into the current liquidity management strategies of banks. This paper seeks to determine the current liquidity management practices of banks in South Africa by examining whether South African banks have target liquidity levels which they pursue and also by determining the variables that drive bank liquidity ratios. The study sample comprised six commercial banks operating in South Africa over the period 1993 to 2009. For analysis, a partial adjustment model was developed and estimated using the generalized method of moments (GMM) estimator. The rate at which South African banks adjust their balance sheets was estimated at 8%. This adjustment speed implies that South African banks adjust their balance sheets slowly – probably due to high adjustment costs. Thus, South African listed banks have passively managed their liquidity and partially adjust their liquidity levels in an attempt to reach the optimal level. Furthermore, the following variables were considered to be the main drivers of liquidity ratios in South Africa: bank size, capital adequacy, loan loss reserves, and financial crisis.

scholarly journals THE LIQUIDITY AND PROFITABILITY TRADEOFF OF COMMERCIAL BANKS IN NIGERIA

2021 ◽  
Vol 2 (2) ◽  
pp. 17-26
Author(s):  
O. D. Adegboye
Keyword(s):  
Correlation Coefficient ◽  
Commercial Banks ◽  
Management Strategies ◽  
Secondary Data ◽  
Least Square ◽  
Annual Reports ◽  
Return On Assets ◽  
Coverage Area ◽  
Liquidity Management ◽  
Ordinary Least Square

This study used empirical facts and assessed the trade-off of profitability versus liquidity (and vice versa) for five commercial banks in Nigeria. Multivariate research design, regression analysis, Ordinary Least Square, and correlation coefficient approaches were used to apply quantitative methodologies to data collected. Amongst the population of twenty-two banks, Zenith, First, United Bank for Africa, Guaranteed Trust and Union Banks were chosen as case studies for this study using a purposive sample approach. Secondary data was gathered from their five-year annual reports, which were published between 2015 and 2019. The correlation coefficient was employed to test the hypothesis, which revealed that there was a statistically perfect correlation (positive and negative) between LA (loans), BA (bank advances), and MDI (marketable debt instruments) against PAT (profit after tax) and ROA (return on assets). Furthermore, since banks strive to maintain their current assets, the findings revealed that efficient liquidity management is a key determinant that may boost or impair a bank’s profitability. To avoid future insolvency and bankruptcy, this study recommends that these banks use contemporary and effective liquidity management strategies amid the current post-pandemic environment. In addition, while focusing on the same topic of research, interested scholars should make significant use of a broader data coverage area. 

scholarly journals LIQUIDITY AS A MEASURE OF EFFICIENCY OF FRUIT AND VEGETABLE PRODUCER GROUPS AND ORGANIZATIONS

2018 ◽  
Vol 48 (2) ◽  
pp. 205-212
Author(s):  
Joanna Pawlak ◽  
Łukasz Kopiński ◽  
Dariusz Paszko ◽  
Barbara Banach-Albińska
Keyword(s):  
Liquidity Risk ◽  
Financial Statements ◽  
Fruit And Vegetable ◽  
Liquidity Management ◽  
Market Activity ◽  
Financial Condition ◽  
Research Material ◽  
Financial Liquidity ◽  
Further Development

This study attempts to assess the financial liquidityof fruit and vegetable producer groups and organizations.Based on static liquidity ratios, the analysis was used for a preliminaryassessment of the financial condition of the abovementionedeconomic operators in the context of forecastingtheir further market activity. Financial statements from 2012–2015 served as research material. The survey extended to 78groups and organizations of fruit and vegetable producers. Asshown by the results, most of the operators surveyed failed tomeet all the criteria of financial liquidity management. Theaverage and median values of current, quick and cash ratiossuggest that the operators face quite a high liquidity risk. Thiswas confirmed by the results of detailed studies which showedthat the liquidity ratios reported by ca. 60% of the operatorswere below the recommended optimum. Therefore, in the reportingperiod considered, such operators could be unable tomeet their liabilities as they fall due. This may pose a severethreat to their continued existence and further development.

scholarly journals A Look at the Liquidity Management Practices of Banks in South Africa

2017 ◽  
Vol 9 (3) ◽  
pp. 113
Author(s):  
Tafirei Mashamba ◽  
Farai Kwenda
Keyword(s):  
South Africa ◽  
South African ◽  
Management Practices ◽  
Management Strategies ◽  
Generalized Method Of Moments ◽  
Adjustment Costs ◽  
Capital Adequacy ◽  
Loan Loss ◽  
Liquidity Management ◽  
Balance Sheets

In an effort to strengthen bank liquidity-risk management practices, the Basel Committee proposed new liquidity requirements for banks in 2010 under the Basel III framework. However, despite the good intentions of the liquidity requirements the new regulations are likely to present some challenges for banks in the course of managing their liquidity. However, before any inference can be made about the possible implications of the liquidity standards on bank liquidity management practices, it is imperative to have insight into the current liquidity management strategies of banks. This paper seeks to determine the current liquidity management practices of banks in South Africa by examining whether South African banks have target liquidity levels which they pursue and also by determining the variables that drive bank liquidity ratios. The study sample comprised six commercial banks operating in South Africa over the period 1993 to 2009. For analysis, a partial adjustment model was developed and estimated using the generalized method of moments (GMM) estimator. The rate at which South African banks adjust their balance sheets was estimated at 8%. This adjustment speed implies that South African banks adjust their balance sheets slowly – probably due to high adjustment costs. Thus, South African listed banks have passively managed their liquidity and partially adjust their liquidity levels in an attempt to reach the optimal level. Furthermore, the following variables were considered to be the main drivers of liquidity ratios in South Africa: bank size, capital adequacy, loan loss reserves, and financial crisis.

scholarly journals The Analysis of Financial Liquidity Management in Small Transport Enterprises During the COVID 19 Pandemic - Case Study of Poland

2020 ◽  
Vol 17 ◽  
Keyword(s):  
Supply Chains ◽  
Small Enterprises ◽  
Financial Security ◽  
Liquidity Management ◽  
Transport Services ◽  
The Future ◽  
Financial Liquidity ◽  
Micro Enterprises

The crisis associated with the COVID-19 pandemic hit all industries in Poland. It is mostnoticeable for small and micro enterprises, which are particularly exposed to the risk of losingfinancial liquidity. Small payment bottlenecks, interruptions in production, sales or services,immediately affect the financial security of these entities. The COVID-19 pandemic has shaken thefinancial condition of virtually all service enterprises in Poland. Closing borders and quarantineforced on many entities hindered the flow of products in integrated supply chains, which significantlyimpacted the functionality of enterprises providing transport services. The purpose of this article is anattempt to present a strategy for managing liquidity in transport enterprises during the COVID-19pandemic. The article presents strategies for managing liquidity in the period before the pandemicand during its first three months. The article presents selected mechanisms that were used bymanagers of small enterprises at the time of the appearance of the COVID-19 pandemic. The periodof three months is too short a time to assess whether the tools used were effective and have broughtmeasurable benefits, which is why this article is an introduction to the wider research that will becarried out in the future.

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