Working capital management and liquidity reserves: The context of risk retention

• Authors: Wieczorek-Kosmala Monika , Doś Anna , Błach Joanna , Gorczyńska Maria
• Languages of publication: EN

Abstracts

EN

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.

Keywords

EN

Liquidity; Liquidity reserves; Risk; Risk retention; Working capital management

• Publisher: Uniwersytet Ekonomiczny w Katowicach
• Journal: Journal of Economics and Management
• Year: 2016
• Volume: 23
• Pages: 5-20

Contributors

author

Wieczorek-Kosmala Monika

• Department of Corporate Finance and Insurance. Faculty of Finance and Insurance. University of Economics in Katowice

author

Doś Anna

• Department of Corporate Finance and Insurance. Faculty of Finance and Insurance. University of Economics in Katowice

author

Błach Joanna

• Department of Corporate Finance and Insurance. Faculty of Finance and Insurance. University of Economics in Katowice

author

Gorczyńska Maria

• Department of Corporate Finance and Insurance. Faculty of Finance and Insurance. University of Economics in Katowice

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Identifiers

ISSN

1732-1948