This paper studies how the working capital position of small firms responds to changes in the level of economic activity. Fifty small firms were studied for the time period 1980‐1991. The findings from this study showed that liquidity increased slightly for these firms during economic...

This paper studies how the working capital position of small firms responds to changes in the level of economic activity. Fifty small firms were studied for the time period 1980-1991. The findings from this study showed that liquidity increased slightly for these firms during economic expansion...