Publication detail

Liquidity, probability of bankruptcy and the corporate life cycle: the evidence from Czech Republic.

MOKHOVA, N. ZINECKER, M.

Original Title

Liquidity, probability of bankruptcy and the corporate life cycle: the evidence from Czech Republic.

Type

journal article - other

Language

English

Original Abstract

The paper is focused on the analysis of liquidity and probability of bankruptcy on the different stages of the corporate life cycle (CLC) as growth, maturity and recession. After the global financial crisis (GFC) of 2007–2008 many companies have appeared at the stage of recession or even bankruptcy. This study examines the financial performances of small- and medium-sized enterprises (SMEs) in Czech Republic at the different stages of corporate life cycle during the period 2006–2010 (which includes the year before financial crisis and after). We find that corporate life cycle influences the relation between bankruptcy probability and liquidity. There is a negative and strong relation between profitability and liquidity at the stage of growth and maturity. In addition, the strong and negative relation is found between coverage ratio and liquidity ratio at the stage of decline. However, there is a weak effect of activity on liquidity at all stages of corporate life cycle.

Keywords

liquidity; bankruptcy probability; growth; maturity; decline; small and medium enterprises; small- and medium-sized enterprises; SMEs; global financial crisis; GFC; Czech Republic; globalisation; small business; corporate llife cycle; CLC

Authors

MOKHOVA, N.; ZINECKER, M.

RIV year

2013

Released

1. 2. 2013

Publisher

Inderscience Enterprises Ltd.

Location

Geneve

ISBN

1479-3067

Periodical

International Journal of Globalisation and Small Business

Year of study

2013

Number

3

State

Swiss Confederation

Pages from

189

Pages to

208

Pages count

20

BibTex

@article{BUT97982,
  author="Natalia {Mokhova} and Marek {Zinecker}",
  title="Liquidity, probability of bankruptcy and the corporate life cycle: the evidence from Czech Republic.",
  journal="International Journal of Globalisation and Small Business",
  year="2013",
  volume="2013",
  number="3",
  pages="189--208",
  issn="1479-3067"
}