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Forecasting Liquidity In Traditional And Technology-Based Sectors – The Case Of Poland

Author

Listed:
  • Monika Bolek

    (University of Lodz)

  • Bartosz Grosicki

    (University of Lodz)

Abstract

The present paper explores the possibility of forecasting company liquidity based on testing the coefficient of variability. Secondly, it analyzes static and dynamic liquidity measures to ascertain which are better at prediction in the traditional and technology-based sectors. It was assumed that the cash conversion cycle should be the more predictable measure and forecasts using it should be more accurate for traditional companies, but the CCC has turned out to work better for technology-based businesses listed on the Warsaw Stock Exchange. Poland is an example of a developing market that has undergone a transformation and has not been dramatically affected by the crisis, and we believe that our research may reveal some liquidity-related economic patterns applicable not only to other in-transition and developing countries, but also to countries facing economic problems. The study was conducted on the non-financial companies listed on the WSE in the period 1997–2010.

Suggested Citation

  • Monika Bolek & Bartosz Grosicki, 2014. "Forecasting Liquidity In Traditional And Technology-Based Sectors – The Case Of Poland," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 9(4), pages 25-38, April.
    • Handle: RePEc:rze:efinan:v:9:y:2014:i:4:p:25-38
    as

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    File URL: http://e-finanse.com/artykuly_eng/260.pdf
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    References listed on IDEAS

    as
    1. Katerina Lyroudi & Dan McCarty, 1993. "An Empirical Investigation of the Cash Conversion Cycle of Small Business Firms," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 2(2), pages 139-161, Spring.
    2. Balaji S. Chakravarthy, 1987. "On tailoring a strategic planning system to its context: Some empirical evidence," Strategic Management Journal, Wiley Blackwell, vol. 8(6), pages 517-534, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    liquidity; cash conversion cycle; sectors Least Squares Method;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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