Acta Univ. Agric. Silvic. Mendelianae Brun. 2018, 66(6), 1477-1484 | DOI: 10.11118/actaun201866061477
What Drives Liquidity of Tourism Companies? Microeconomic Evidence from Bulgaria, Czech Republic and Poland
- Department of Finance and Accounting, School of Business Administration in Karviná, Silesian University in Opava, Univerzitní nám. 1934/3, 733 40 Karviná, Czech Republic
Current paper focuses on business economics of tourism industry. Liquidity of a company has the key role within financial management among all industries, including the tourism as well. However, the question still remains: What drives the liquidity among hotels and travel agencies? The aim of the paper is to investigate whether or not is the liquidity among tourism companies in Bulgaria, Czech Republic and Poland affected by other selected microeconomic variables. It is obtained financial data from annual reports of 1,892 tourism companies collected within Amadeus, the international statistical database. Estimated period is from 2006 till 2015. In particular it has been explored three variables (i) return on assets, (ii) share of stockholders' funds, and (iii) average length of loans from creditors. As the main estimation method is employed the Generalized Method of Moments (GMM) with panel data. A comparison is made between both, large as well as medium sized hotels and travel agencies in selected countries. Except of a few, it was proven that reinvestments of the decreasing profit supported liquidity among tourism companies during a period affected by the global financial crisis.
Keywords: hotels and travel agencies, cash conversion cycle, panel GMM model
Grants and funding:
This paper was supported by Silesian University in Opava within SGS/7/2018 "Analýza vlivu vybraných aspektů na finanční strukturu podniků v podmínkách zemí střední a východní Evropy".
Published: December 19, 2018 Show citation
| ACS | AIP | APA | ASA | Harvard | Chicago | IEEE | ISO690 | MLA | NLM | Turabian | Vancouver |
References
- AKINCI, D. A., MATOUSEK, R., RADIĆ, N. and STEWART, C. 2013. Monetary policy and the banking sector in Turkey. Journal of International Financial Markets, Institutions and Money, 27: 269-285. DOI: 10.1016/j.intfin.2013.08.001
Go to original source... - CAGLE, C. S., CGMA, C. and CAMPBELL, S. N. 1980. Analyzing Liquidity. Management, 9(1): 44-48.
- CHANG, C. C. 2018. Cash conversion cycle and corporate performance: Global evidence. International Review of Economics & Finance, 56(C): 568-581. DOI: 10.1016/j.iref.2017.12.014 Go to original source...
- CREDITREFORM. 2017. Development of insolvencies in Europe. Creditform. [Online]. Available at: https://www.creditreform.cz/en/press-and-downloads/development-of-insolvencies-in-europe.html [Accessed: 2018, February 22].
- DE ALMEIDA, J. R. and EID, W. 2014. Access to finance, working capital management and company value: Evidences from Brazilian companies listed on BM and FBOVESPA. Journal of Business Research, 67(5): 924-934. DOI: 10.1016/j.jbusres.2013.07.012 Go to original source...
- HERYÁN, T. 2017a. Were the Czech Hotels Able to Confront Current Appreciation of the Czech Currency Before the End of the Exchange Rate Commitment? Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(6): 1925-1933. DOI: 10.11118/actaun201765061925 Go to original source...
- HERYÁN, T. 2017b. What influences usage of external financial sources among large and medium sized hotels in V4 countries? In: Proceedings of the 23rd International Scientific Conference on Economic and Social Development. (In print).
- HERYÁN, T. and TZEREMES, P. G. 2017. The bank lending channel of monetary policy in EU countries during the global financial crisis. Economic Modelling, 67: 10-22. DOI: 10.1016/j.econmod.2016.07.017 Go to original source...
- LUO, M. M. 2011. A bright side of financial constraints in cash management. Journal of Corporate Finance, 17(5): 1430-1444. DOI: 10.1016/j.jcorpfin.2011.07.001 Go to original source...
- MOUSSAWI-HAIDAR, L., and JABER, M. Y. 2013. A joint model for cash and inventory management for a retailer under delay in payments. Computers and Industrial Engineering, 66(4): 758-767. DOI: 10.1016/j.cie.2013.09.021 Go to original source...
- ÖZBAYRAK, M. and AKGÜN, M. 2006. The effects of manufacturing control strategies on the cash conversion cycle in manufacturing systems. International Journal of Production Economics, 103(2): 535-550. DOI: 10.1016/j.ijpe.2005.11.002 Go to original source...
- SHERMAN, E. H. 2015. Ratio Analysis for Financial Statements. In: A Manager's Guide to Financial Analysis, Powerful Tools for Analyzing the Numbers and Making the Best Decisions for Your Business. 6th Edition, pp. 39-84.
- WANG, Y. J. 2002. Liquidity management, operating performance, and corporate value: evidence from Japan and Taiwan. Journal of Multinational Financial Management, 12(2): 159-169. DOI: 10.1016/S1042-444X(01)00047-0 Go to original source...
- ZEIDAN, R. and SHAPIR, O. M. 2017. Cash conversion cycle and value-enhancing operations: Theory and evidence for a free lunch. Journal of Corporate Finance, 45: 203-219. DOI: 10.1016/j.jcorpfin.2017.04.014 Go to original source...
This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.