Economic management and liquidity of a company listed on the Lima Stock Exchange (LSE)
DOI:
https://doi.org/10.51798/sijis.v4i2.633Keywords:
Financial, economic, liquidity, company, management.Abstract
In order to make good decisions in the company, executives must know the reality of their company and the needs that each area has, as this allows them to adequately plan their budget and allocate sufficient economic resources for the performance of their functions. The main objective was to determine the relationship between economic management and liquidity of a company listed on the LSE from 2017 to 2021. In addition, it was considered to use a basic quantitative approach, with a descriptive correlative level, with a longitudinal design, with the population and sample composed of the company's consolidated financial data in the 2017-2021 study. The findings revealed that inventory turnover achieved a p-value of less than 0.05 with the three liquidity dimensions; additionally, a Pearson of 0.883 was obtained with working capital. This allows us to conclude that if an organization is able to maximize its value through proper planning that takes into account the real needs of the organization and moves towards recognizing the economic risks that can cause liquidity problems, then efficiency in business management is achieved.
References
Abdillah , N. (2020). Effect of inventory turnover on the level of profitability. IOP Conf. Series: Materials Science and Engineering, 725, 1-15. doi:doi:10.1088/1757-899X/725/1/012137.
Abuhommous, A. A., Alsaraireh, A. S., & Alqaralleh, H. (2022). The impact of working capital management on credit rating. Financ Innov, 8(72), 1-20. https://doi.org/10.1186/s40854-022-00376-z.
Acosta , M., & Jimènez, M. (2020). Business management model of Ecuador. Revista Científica FIPCAEC (Fomento De La investigación Y publicación En Ciencias Administrativas, Económicas Y Contables), 5(5), 115-131.https://doi.org/10.23857/fipcaec.v5i5.218
Agurto, Y. M. C., Rodriguez, V. H. P., Delgado, F. M. C., Cruz, L. del C. S. S., Ramírez, F. B., & Gavidia, M. J. F. (2023). Relationship of Cash Management to Profitability of Cement Companies Listed on the Lima Stock Exchange. International Journal of Professional Business Review, 8(4), e01616. https://doi.org/10.26668/businessreview/2023.v8i4.1616
Apaza , O., Marin, P., & Cutipa, I. (2021). Factors influencing the liquidity of Mypes in times of covid-19 pandemic. Ciencia Latina Revista Científica Multidisciplinar, 5(6), 13024-13039. https://doi.org/10.37811/cl_rcm.v5i6.1305.
Boisjoly, R., Conine, T., & McDonald, M. (2020). Working capital management: Financial and valuation impacts. Journal of Business Research, 108, 1-8. https://doi.org/10.1016/j.jbusres.2019.09.025.
Cahuana, C. (2018). Net income, net sales and competitiveness in the SOUTHERN Peru COPPER CORPORATION Company in the period 1999-2016". [Undergraduate thesis, Universidad José Carlos Maríategui]. http://repositorio.ujcm.edu.pe/bitstream/handle/20.500.12819/503/Carlos_tesis_titulo_2018.pdf?sequence=1&isAllowed=y
Cardozo Torres , A. N. ., Minga Mori , J. ., Akintui Antich , J. P. ., & Puican Rodriguez, V. H. . (2023). Corporate indebtedness and profitability of a private school listed on the Lima Stock Exchange (LSE). Sapienza: International Journal of Interdisciplinary Studies, 4(1), e23001. https://doi.org/10.51798/sijis.v4i1.597
Choquehuanca, N., Diego, R., & Vàsquez, C. (2021). Comparative analysis of liquidity and indebtedness, in sugar companies listed on the BVL. REVISTA ESPÍRITU EMPRENDEDOR TES, 5(2), 55-75. https://doi.org/10.33970/eetes.v5.n2.2021.256
Daryanto, W., Samidi, S., & Siregar, D. (2018). The impact of financial liquidity and leverage on financial performance: Evidence from property. Management Science Letters, 8, 1345-1352. 10.5267/j.msl.2018.9.005.
Encalada , V. (2022). A proposed model based on IFRS SMEs for the improvement of economic and financial management in small companies in Guayaquil. Revista Finanzas y Política Económica, 14(1), 49-74. https://doi.org/10.14718/revfinanzpolitecon.v14.n1.2022.3
Encalada, V. (2022). Improving Economic-Financial Management in the Hotel Sector: Proposal from the International Financial Standard. Producción + Limpia, 16(2), 112-135. https://doi.org/10.22507/pml.v16n2a6
Feldman, G. (2018). Working capital in SMEs as a constraint to their operations. La Revista Argentina De Investigación En Negocios, 4(2), 33-44. http://rain.ean.edu.ar:8085/rain/index.php/RAIN/article/view/66.
Guerrero , Y., Huamán , K., & Vallejos, J. (2022). Working capital management and decision making in the company alba mayo S.R.L, Moyobamba - 2021. Ciencia Latina Revista Científica Multidisciplinar, 5(6), 14931-14953. https://doi.org/10.37811/cl_rcm.v5i6.1447
Gutièrrez, J., & Tapia, J. (2020). Liquidity and profitability. A conceptual review and its dimensions. Journal De Investigación Valor Contable, 3(1), 9-30. https://doi.org/10.17162/rivc.v3i1.1229
Guzman, M., Reyes , S., & Chan Yu, R. (2021). Efficient inventory control. RECIAMUC, 5(2), 121-130. https://doi.org/10.26820/reciamuc/5.(2).abril.2021.121-130
Hayakawa, H. (2020). Liquidity in Financial Networks. Computational Economics, 55, 253-301. doi:https://doi.org/10.1007/s10614-019-09895-x
Huaraca, J., Maquera, E., & Vega, P. (2022). Comparative analysis of liquidity and indebtedness in InRetail Peru corp. 2018-2021. LATAM Revista Latinoamericana De Ciencias Sociales Y Humanidades, 3(2), 95-109. https://doi.org/10.56712/latam.v3i2.67
Kontus, E., & Mihanovic, D. (2019). Management of liquidity and liquid assets in small and medium-sized enterprises. Ekonomska Istraživanja /Economic Research, 32(1), 3253-3271. 10.1080/1331677X.2019.1660198.
Kusuma, H., & Bachtiar, A. (2018). Working Capital Management and Corporate Performance: Evidence from Indonesia. Journal of Management and Business Administration. Central Europe, 26(2), 76-88. 10.7206/jmba.ce.2450-7814.229.
Le, H., Vu, K., Le, T., Du, N., & Tran, M. (2018). Impact of Working Capital Management on Financial Performance: The case of Vietnam. International Journal of Applied Economics, Finance and Accounting, 3(1), 15-20. 10.33094/8.2017.2018.31.15.20.
Mantilla, J., & Huanca, B. (2020). Accounts receivable and liquidity in a service company. SCIÉNDO, 23(4), 259-263. http://dx.doi.org/10.17268/sciendo.2020.030
Marin, J., & Delgado, M. (2020). Job Performance in Municipal Management 2020. Latin Science, 4(2), 1139-1159. https://doi.org/10.37811/cl_rcm.v4i2.145. https://doi.org/10.37811/cl_rcm.v4i2.145
Mejia, K., Sicheri, L., & Nolazco, F. (2020). Liquidity in the economic processes of an interior decoration company, Lima 2019. Espíritu Emprendedor TES 2020, 4(1), 1-12. https://doi.org/10.33970/eetes.v4.n1.2020.178. https://doi.org/10.33970/eetes.v4.n1.2020.178
Mori, G., Gardi, V., & Moreno, R. (2021). Liquidity analysis in a land freight transportation company. Oikos Polis, 6(2), 3-29. http://www.scielo.org.bo/scielo.php?script=sci_arttext&pid=S2415-22502021000200003&lng=es&tlng=es.
Nguyen, A., Pham, H., & Nguyen, H. (2020). Impact of Working Capital Management on Firm's Profitability: Empirical Evidence from Vietnam. Journal of Asian Finance, Economics and Business, 7(3), 115-125. 10.13106/jafeb.2020.vol7.no3.115.
Nikolov, B., Schmid, L., & Steri, R. (2019). Dynamic corporate liquidity. Journal of Financial Economics, 132(1), 76-102. https://doi.org/10.1016/j.jfineco.2017.06.018.
Nikulina, O., Zilberova, I., & Novoselova, I. (2022). Formation of organizational behavior within the management system of business structures of the transportation industry. ScienceDirect, 63, 541-547. https://doi.org/10.1016/j.trpro.2022.06.046.
Niu, Y., Yang, J., Wu, Y., & Zhao, S. (2022). Corporate social responsibility and dynamic liquidity management. Research in International Business and Finance, 59, 1-15. https://doi.org/10.1016/j.ribaf.2021.101559.
Olinova, N., Teshabaeva, O., & Usmonaliev, I. (2022). Possibilities Of Choosing The Strategy Of Anti-Crisis And Competitive Management Based On The Own Economic Potential Of The Enterprise. Journal Of Social Science & Interdisciplinary, 11(27), 179-182. http://www.gejournal.net/index.php/IJSSIR/article/view/341.
Párraga, S., Pinargote, N., García , C., & Zamora, J. (2021). Financial management indicators in small and medium-sized enterprises in Ibero-America: a systematic review. Contemporary Dilemmas: Education, Politics and Values, 8(spe2), 1-24. https://doi.org/10.46377/dilemas.v8i.2610
Parrilla , Y., Apaza, L., Huaquisto , D., & Cusilayme, H. (2022). Liquidity and collection strategies in a Private Educational Institution, in context of Pandemic by COVID-19. Ciencia Latina Revista Científica Multidisciplinar, 6(4), 4464-4477. https://doi.org/10.37811/cl_rcm.v6i4.2949
Raavinuthala , K., Arunaditya, S., & Kumar, B. (2022). Issues in liquidity management in banking system: An empirical evidence from Indian commercial banks. Cogent Economics & Finance, 10(1), 1-17. https://doi.org/10.1080/23322039.2022.2122190
Reschiwati , R., Syahdina , A., & Handayani, S. (2020). Effect of liquidity, profitability, and size of companies on firm value. Utopia y Praxis Latinoamericana, 25(6), 325 - 332. 10.5281/zenodo.3987632.
Rodrigues, V., Almeida , L., Alves , J., & Ribeiro, O. (2019). Factors associated with the structural liquidity of banks in Brazil. Revista Contabilidade & Finanzas, 30(80), 252 - 267. https://doi.org/10.1590/1808-057x201806350.
Romero, S., Sáenz, S., & Pacheco , A. (2021). Inventory management in SMEs in the construction sector. Polo del Conocimiento, 6(9), 1495-1518. 10.23857/pc.v6i9.3124
Shamsutdinova, M., Astrakhantseva, E., Bimurzaeva, A., Mirgaleeva, I., & Ignatiev, V. (2022). Creation of an Optimization Mechanism to Increase the Economic Potential of an Enterprise. Сooperation and Sustainable Development. Lecture Notes in Networks and Systems, 245, 869-878. https://doi.org/10.1007/978-3-030-77000-6_103.
Thuy , L., Thanh, D., Nhu, N., & Wong, W. (2021). Does Bank Liquidity Risk Lead to Bank's Operational Efficiency? A Study in Vietnam. Advances in Decision Sciences, 25(4), 46-88. https://doi.org/10.47654/v25y2021i4p46-88
Vàsquez, C., Terry , O., Huaman , M., & Cerna , C. (2021). Liquidity ratios and accounts receivable: Comparative analysis of companies in the dairy sector listed on the Lima stock exchange. Visión de futuro, 25(2), 195-214. http://dx.doi.org/https://doi.org/10.36995/j.visiondefuturo.2021.25.02R.006.es
Villavicencio, Y., Soto , S., & Calvanapón, F. (2022). Accounts receivable management and its effect on liquidity in a transportation company in Trujillo. SCIÉNDO, 25(1), 49-52. https://doi.org/10.17268/sciendo.2022.006
Wang, J., & Yingyun, Y. (2021). Cross-trading and liquidity management: Evidence from municipal bond funds. Pacific-Basin Finance Journal, 67, 1-24. https://doi.org/10.1016/j.pacfin.2021.101564
Wu, Y. (2022). Exploring the Influence of Big Data Technology on the Innovation of the Enterprise Economic Management Mode. Security and Communication Networks, 1-13. https://doi.org/10.1155/2022/6241182.
Zanolla , E., & Tibùrcio, C. (2017). Value of Liquidity: an exploratory study in the Brazilian companies of electrity sector. REAd. Revista Eletrônica de Administração (Porto Alegre), 23(1), 118-136. https://doi.org/10.1590/1413-2311.041.57359
Zimon, G., Nakonieczny, J., Chudy, K., Wòjcik, M., & Kochànski, K. (2022). An Analysis of the Financial Liquidity Management Strategy in Construction Companies Operating in the Podkarpackie Province. MDPI, 10(1), 1-15. https://doi.org/10.3390/risks10010005
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Ada Tatiana Alfaro Cruzado , Lirio Pujupat Shirap, Erlita Llatas Becerra , Victor Hugo Puican Rodriguez, Jorge Luis Vargas Espinoza
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.