A MULTINATIONAL LIQUIDITY COMPARISON OF MANUFACTURING FIRMS
- People & Global Business Association
- Global Business and Finance Review
- Vol.2 No.2
-
1997.1271 - 80 (9 pages)
- 6
Using a sample of U.S. -based manufacturing firms with at least 20% of their revenue generated abroad, static measures of liquidity indicate that small MNCs are more liquid while dynamic measures of liquidity indicate that large MNCs are more liquid. These results are consistent with the idea that managers of relatively small MNCs carry larger balances of current assets to capitalize on investments in growth opportunitie or to avoid bankruptcy and the loss of employment. Furthermore, the findings of this study uggest that large MNCs have shorter business cycles and are more focused on managing their liquidity.
Abstract
INTRODUCTION
THEORETICAL CONSIDERATIONS
LIQUIDITY DEFINITIONS
TESTABLE HYPOTHESES
SAMPLE
METHODOLOGY
RESULTS
SUMMARY
ENDNOTES
REFERENCES
BIOGRAPHIES
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