Liquidity and profitability literature review

Liquidity and profitability analysis on the romanian listed companies georgeta vintilă and elena alexandra nenu bucharest university of economic studies, department of finance, bucharest, romania to present a literature review regarding the impact of liquidity measured by liquidity rates it has also been observed the influence. Working capital management, liquidity and profitability of the manufacturing sector in palestine: panel literature review positive relationship between profitability and liquidity of the firms those findings are consistent with the find-ings of [7. Literature review the current ratio and the quick ratio rely on the values identified as current assets and current liabilities in the statement of financial position. This purpose of the research was directed to review the trade-off among liquidity and profitability in the banking sector the research was applied to all listed banks of pakistan stock exchange during the time period of 2010-2015. Relationship between liquidity and profitability could become positive, in the sense that a low liquidity would result in a lower profitability due to greater need loans, and low profitability would not generate sufficient cash flow, thus forming a vicious cycle.

liquidity and profitability literature review Impact of liquidity, leverage, inflation on firm profitability an  (profitability)liquidity ratios are insignificant relationship with return on asset and return on equity debt ratios are negatively associative with return on assets and return on sales profitability ratios are positively associative with return on assets and.

Present all the debates through the literature review on the profitability of these important financial bank profitability, banking sector, liquidity, return on equity, inflation, gdp, non-performing loans an abundant number of studies concluding that one of the primary factors influencing the bank profitability is the control on the. Commercial bank is an economic unit with its main objectives of maximizing profit the role of a commercial bank is different from that of central bank in the utmost aim of making profit from the public through providing banking-services for personal and commercial customers. In summary, the literature review indicates that the impact of liquidity on the profitability is still not clear because as mentioned before some authors obtained linear relationship while other.

Selected and examined to find the impact of liquidity on profitability over the period of 2009 to 2013 the selected banks of cse 30 are arab 3literature review banks today are under great pressure however, the impact of liquidity management. Literature review and research model the negative association between company’s accounts receivables and profitability suggests that the higher level of accounts receivables tend to increase the cash gap and therefore will reduce the. Profitability refers to profits which the company has made during the year which is calculated as difference between revenue and expense done by the company, whereas liquidity refers to availability of cash with the company at any point of time. Literature review use of financial ratios to assess the firm performance is not new a simple literature search can find literally thousands of publications on this topic the studies often differentiate themselves from the rest by developing which are used to evaluate profitability, liquidity and solvency and interrelationship among those. 21 liquidity management practices and banks profitability-an overview the terms liquidity is defined by nwaezeaku (2008) as the degree of convertibility to cash or in other words, the ease with which any assets can be en-cashed or converted to cash is.

Literature review on the liquidity management of commercial banks in cameroon essays and research papers literature review on the liquidity management of commercial banks in cameroon liquidity risk management the case of malaysia islamic banking industry 1 liquidity and profitability. The credit management on liquidity and profitability positions of a manufacturing company in nigeria raymond, a ezejiofor this paper critically assesse the effects of credit management on liquidity and profitability there is a relationship between liquidity management and corporate profitability review of related literature. The relationship between capital structure and profitability dr mohammad fawzi shubita assistant professor the relationship between capital structure and profitability cannot be ignored because the improvement in the the concept of capital structure and its effect on the firm’s profitability 4 literature review. The essay on liquidity and its interaction with capital identifies a number of potential channels through which liquidity requirements can affect bank behaviour, balance sheets and profitability.

Liquidity and profitability literature review

liquidity and profitability literature review Impact of liquidity, leverage, inflation on firm profitability an  (profitability)liquidity ratios are insignificant relationship with return on asset and return on equity debt ratios are negatively associative with return on assets and return on sales profitability ratios are positively associative with return on assets and.

Literature review cogently reveals multiple research papers on the working capital, liquidity and profitability numerous studies have concentrated on the linkage between. Liquidity that affect profitability is the quick ratio and the probability of its influence on return on assets was 9824% niresh (2012), have taken into consideration 31 listed manufacturing. When we look the profitability of this sector from liquidity perspective we decipher that the current and quick ratio’s are quite near to the ideal ratio (2:1) that should exist ie current ratio is 146:1 and quick ratio stands at 13:1.

  • The review of existing literature revealed that bank’s liquidity has significant influence on banking outcomes such as banks performance, banks risk-taking behaviour, moral hazard, and other financial risks.
  • Section reviews the literature for relevant theoretical and empirical work on liquidity and cash management and its effect on profitability section three describes the sample and the.

Such liquidity ratios, asset management ratios, profitability ratios, market value ratios, literature review 9-14 3 methodology different aspects of performance such as profitability ratios, liquidity ratios, debt ratios, performance ratios, investment evaluation ratios. 5 making a romanian literature review we can find the following: stefea p (2002) appreciates that the profitability is the ability of a lucrative activity to generate revenues higher than expenses involved. Relationship between liquidity and profitability could be positive, meaning that a low liquidity and profitability, and then observe if on the medium term this correlation is literature review in this section i will provide a critical analysis of the most relevant theories, from. The relationship between liquidity and profitability of insurance companies in kenya by kiio peter ngwili d61/61023/2013 a research project submitted in partial.

liquidity and profitability literature review Impact of liquidity, leverage, inflation on firm profitability an  (profitability)liquidity ratios are insignificant relationship with return on asset and return on equity debt ratios are negatively associative with return on assets and return on sales profitability ratios are positively associative with return on assets and. liquidity and profitability literature review Impact of liquidity, leverage, inflation on firm profitability an  (profitability)liquidity ratios are insignificant relationship with return on asset and return on equity debt ratios are negatively associative with return on assets and return on sales profitability ratios are positively associative with return on assets and.
Liquidity and profitability literature review
Rated 4/5 based on 15 review

2018.