Search: liquidity
RBA Glossary definition for liquidity
liquidity – The capacity to sell an asset quickly without significantly affecting the price of that asset. Liquidity is also sometimes used to refer to assets that are highly liquid.
Search Results
Data
30 Nov 2016
RDP
2016-09
We measure liquidity as the ratio of cash (and cash equivalents) to total assets. ... The histograms indicate that average failure rates are positively correlated with leverage and negatively correlated with size, age, profitability and liquidity.
https://www.rba.gov.au/publications/rdp/2016/2016-09/data.html
Why Do Companies Fail?
1 Nov 2016
RDP
2016-09
We measure liquidity as the ratio of cash (and cash equivalents) to total assets. ... The histograms indicate that average failure rates are positively correlated with leverage and negatively correlated with size, age, profitability and liquidity.
https://www.rba.gov.au/publications/rdp/2016/2016-09/full.html
Why Do Companies Fail?
24 Nov 2016
RDP
2016-09
risks. Consistent with overseas research, we find that cyclical company-specific factors are important determinants of failure; a corporation is more likely to fail if it has low liquidity, low profitability
https://www.rba.gov.au/publications/rdp/2016/2016-09.html
Conclusion
30 Nov 2016
RDP
2016-09
Second, cyclical company-level factors are also important. These factors include the ‘usual suspects’, such as high leverage and low profitability, with low liquidity playing a particularly important role. ... Liquidity and profitability matter for
https://www.rba.gov.au/publications/rdp/2016/2016-09/conclusion.html
Results
30 Nov 2016
RDP
2016-09
The liquidity of a company's balance sheet also matters; more cash lowers the probability of failure, as does higher profitability. ... The effect of liquidity is particularly important; a one standard deviation rise in the cash-to-assets ratio lowers
https://www.rba.gov.au/publications/rdp/2016/2016-09/results.html
Introduction
30 Nov 2016
RDP
2016-09
Cyclical company-level characteristics are important too. Corporate failure is more likely when companies have high leverage, low liquidity and low profitability.
https://www.rba.gov.au/publications/rdp/2016/2016-09/introduction.html
Robustness Tests and Extensions
30 Nov 2016
RDP
2016-09
This suggests that the liquidity and solvency of subsidiary companies are closely tied to the performance of their parent companies. ... To the extent that business performance is not perfectly correlated across subsidiaries within the parent company,
https://www.rba.gov.au/publications/rdp/2016/2016-09/robustness-tests-and-extensions.html