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Cash IS king! – Securing liquidity in economic crisis

Author

Listed:
  • Warning, Hans Olaf
  • Grömling, Michael
  • Schulke, Arne

Abstract

The beginning of the year 2023 is marked by continued economic instability, some of it still lingering from economic ramifications of the COVID-19 pandemic, some brought on by the war in Ukraine, high energy prices and other more regional factors. For businesses of all shapes and sizes, this poses major challenges in terms of predicting demand, managing performance and supply chains, and ensuring financial stability at the same time - in an environment of steeply declining interest rates and a looming shortage of credit supply. In four parts grouped along the supply chain and the inverse chain of cash movements within a company, this paper seeks to make a case for the importance of liquidity management as a general management discipline rather than a specialized Accounting function. It promotes a broader understanding of the discipline and its rooting in a cross-functional manner in the hearts and minds of managerial staff throughout the entire organization.

Suggested Citation

  • Warning, Hans Olaf & Grömling, Michael & Schulke, Arne, 2023. "Cash IS king! – Securing liquidity in economic crisis," IU Discussion Papers - Business & Management 1 (April 2023), IU International University of Applied Sciences.
    • Handle: RePEc:zbw:iubhbm:1april2023
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    References listed on IDEAS

    as
    1. Mr. Shekhar Aiyar & Mr. Jiaqian Chen & Mr. Christian H Ebeke & Mr. Roberto Garcia-Saltos & Tryggvi Gudmundsson & Ms. Anna Ilyina & Mr. Alvar Kangur & Tansaya Kunaratskul & Mr. Sergio L. Rodriguez & Mi, 2023. "Geoeconomic Fragmentation and the Future of Multilateralism," IMF Staff Discussion Notes 2023/001, International Monetary Fund.
    2. Bardt, Hubertus & Grömling, Michael, 2022. "Krieg in der Ukraine verschärft bestehende Investitionsschwäche," IW-Reports 44/2022, Institut der deutschen Wirtschaft (IW) / German Economic Institute.
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    More about this item

    Keywords

    Working capital; cash management; liquidity expansion;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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