Corporate liquidity management and technical efficiency: Evidence from global listed hospitality enterprises. (August 2018)

• Record Type: Journal Article
• Authors: Yuan, Bocong; Li, Jiannan; Zeng, Guojun
• Is Part Of: International journal of hospitality management. Volume 74(2018)
• Page Start: 40
• Page End: 44
• Publication Date: 2018-08
• Subjects: Corporate liquidity -- Current assets reserve intensity -- Short-term debt financing intensity -- Cash flow intensity -- Technical efficiency; Hotel management -- Periodicals; Restaurant management -- Periodicals; Food service management -- Periodicals; Hôtels -- Gestion -- Périodiques; Restaurants -- Gestion -- Périodiques; Services alimentaires -- Gestion -- Périodiques; Food service management; Hotel management; Restaurant management; Periodicals; 647.94
• DOI: 10.1016/j.ijhm.2018.02.023
• Languages: English
• ISSNs: 0278-4319

Abstract

Highlights: Current assets reserve intensity negatively affects technical efficiency. Cash flow intensity moderate the above negative relation. Relation of short-term debt financing intensity and technical efficiency is nonlinear. Cash flow intensity positively affects technical efficiency. Abstract: This paper examines the influence of corporate liquidity resources on technical efficiency. Results show that internally generated corporate liquidity resources (current assets reserve) and those externally imported (cash flow and short-term debt financing) are very different in affecting technical efficiency. Specifically, current asset reserve intensity negatively predicts technical efficiency, while cash flow intensity would positively impact it. Besides, the relation between short-term debt financing intensity and technical efficiency appears to be inverted U-shape; and cash flow intensity can further strengthen the negative relation between current assets reserve intensity and technical efficiency.