Volume : III, Issue : V, May - 2013

Management of liquidity in the Albanian Firms

Marsida Ashiku Ranxha

Abstract :

Maintaining appropriate level of liquidity within the organization is fundamental towards the smooth operations of firms. Managers have a tendency to hold large proportion of firm assets in the form of cash and cash equivalents in order to reinvest on other physical assets, payments to stockholders and to keep cash inside the firm . The level of cash a firm maintains is characterized by its policies regarding capital structure, working capital requirements, cash flow management, dividend payments, investments and asset management. The current study focuses on determining the level of corporate cash holdings of non–financial Albanian firms, across different firm sizes and different industries. Furthermore, dataset for the period 2001 – 2008 for the firm size, growth opportunities, cash flow, net working capital, leverage, cash flow uncertainty and dividend payments has been statistically analyzed to determine the impact of these factors on corporate cash holdings. The findings of the study are in conformity with the earlier research and reflect that firm size, cash flow, cash flow uncertainty, net working capital, and leverage significantly affect the cash holdings of non–financial firms in Albania.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Marsida Ashiku (Ranxha) Management of liquidity in the Albanian Firms Indian Journal of Applied Research, Vol.III, Issue.V May 2013

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