Factors determining the liquidity of companies in the mechanical engineering industry in Slovakia – an empirical study

Ľubica Lesáková; Miroslava  Vinczeová; Veronika  Špiner

doi:10.23762/FSO_VOL8_NO3_2

Published : 2020-09-29

Vol. 8 No. 3 (2020)

Factors determining the liquidity of companies in the mechanical engineering industry in Slovakia – an empirical study

Ľubica Lesáková

https://orcid.org/0000-0002-7920-6508

Miroslava Vinczeová

https://orcid.org/0000-0001-5380-0907

Veronika Špiner

DOI: https://doi.org/10.23762/FSO_VOL8_NO3_2

Abstract

Liquidity is one of the main characteristics of the financial situation of a company. A lack of liquidity may seriously affect the continuity of a firm’s activities. A thorough analysis and knowledge of the factors affecting the liquidity of a company are an essential requirement of the informed adoption of measures aimed at ensuring company liquidity. This issue is the subject of the presented paper. The main purpose of the article is to analyse the development of liquidity in the mechanical engineering industry in the Slovak Republic (SK NACA rev. 2 28xx – Manufacture of machinery and equipment not elsewhere classified) during the period of 2015-2018, and to identify the key internal and external factors determining liquidity in the industry. The survey was carried out in 2019 on a sample of 398 companies in the specified industry. Sample representativeness was tested on the basis of the non-parametric chi-square goodness of fit test (χ² distribution test). The obtained data were processed by means of statistical methods. To perform the statistical analysis, we applied the methods of descriptive statistics, frequency tables and non-parametric tests (the Friedman and Wilcoxon tests). To verify the validity of the formulated hypotheses, we used the right-tailed test of the hypothesis on the relative frequency. The main finding of the research is the identification of the key internal and external factors determining the liquidity of engineering companies in Slovakia. The results of the research allow companies to take effective measures in managing liquidity and supporting their favourable development.

Keywords:

liquidity, factors determining liquidity, machinery industry, engineering companies, Slovak Republic

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Lesáková, Ľubica, Vinczeová, M. ., & Špiner, V. . (2020). Factors determining the liquidity of companies in the mechanical engineering industry in Slovakia – an empirical study. Forum Scientiae Oeconomia, 8(3), 33–47. https://doi.org/10.23762/FSO_VOL8_NO3_2

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Ľubica Lesáková

lubica.lesakova@umb.sk
https://orcid.org/0000-0002-7920-6508

Affiliation:

Matej Bel University, Banská Bystrica, Slovakia Slovakia

Bio Statement (e.g., department and rank)

Ľubica Lesáková is a Professor of Business Economics and Management at the Faculty of Economics of Matej Bel University in Banská Bystrica (the Slovak Republic). Her research focuses on small and medium-sized enterprises and innovations. She has published more than 100 articles in scientific journals and proceedings of international
conferences.

Miroslava Vinczeová

miroslava.vinczeova@umb.sk
https://orcid.org/0000-0001-5380-0907

Affiliation:

Matej Bel University, Banská Bystrica, Slovakia Slovakia

Bio Statement (e.g., department and rank)

Miroslava Vinczeová is an Associate Professor at the Department of Business Economics and Management of the Faculty of Economics of Matej Bel University in Banská Bystrica (the Slovak Republic). In her scientific research, she focuses on the issues of financial management and financing of small and medium-sized enterprises and innovations. She has published over 50 articles in scientific journals and proceedings of international conferences.

Veronika Špiner

veronika.spiner@gmail.com

Bio Statement (e.g., department and rank)

Veronika Špiner completed her doctoral study of Business Economics and Management at the Faculty of Economics of Matej Bel University in Banská Bystrica in 2018. She has been working as a specialist in the economic department at the large machinery company Tatravagonka in Poprad for 10 years.