Theoretically, a company needs to maintain a liquidity level that is not detrimental to its profitability. Empirical … evidence shows a negative correlation between liquidity and profitability but a company cannot operate with zero liquidity in … order to maximize its profits. Normally firms try to maximize their profitability by maintaining the desired liquidity, but …

cannot survive.But efforts to increase the profitability would tend to reduce firms’ liquidity and too much attention on … liquidity would tend to affect the profitability. No doubt, every firm tries to maximize the profitability by preserving the … liquidation of firm’s assets. Hence a trade-off need to be maintained between liquidity and profitability.This paperattempts to …

This paper studies how liquidity shocks that affect financial intermediaries are propagated to the real economy. Loans … financial intermediaries face tight borrowing constraints (i.e. liquidity risk premium). This liquidity risk faced by financial …

categories of firm. Some of the changes in returns reflect changes in liquidity, while the remainder reflect adjustments to the …

outcomes during systemic liquidity crises. I investigate if this is true for East Asian firms that had raised equity and debt … capital abroad, had better crisis and post-crisis period liquidity and other operational outcomes than otherwise comparable … constrained during and after the crisis. To highlight the liquidity constraints channel, I show that crisis and post-crisis period …

Using a supplier-client matched sample, we study the effect of the 2007-2008 financial crisis on between-firm liquidity … provision. Consistent with a causal effect of a negative shock to bank credit, we find that firms with high pre-crisis liquidity … consistent with firms providing liquidity insurance to their clients when bank credit is scarce and provide an important …

properties. In this research I examine how tenant quality affects REIT firm liquidity management (i.e. cash holdings and … utilization of line of credit). I find that 1) tenant Altman Z-score and size are inversely related to total liquidity (cash plus … liquidity and unused credit lines of REIT firms, but has no affect on REIT cash holdings; 3) tenant credit ratings are …

This study contains the effects of bid-ask spread, firm size and liquidity against price reversal phenomena at …

We examine the causes and consequences of insiders' liquidity needs as a motivation for the secondary sales in an … initial public offering (IPO). Four main findings resulted from our analysis: (1) lower levels of pre-IPO cash holdings lead … the levels of insider sales, and (4) higher levels of insider sales due to liquidity needs result in lower levels of …