Title: The role of managers' perception in liquidity management - case of Croatia
Authors: Mirjana Cizmešija; Ivana Mamic Sacer; Katarina Zager
Addresses: Faculty of Economics and Business, University of Zagreb, Trg J. F. Kennedya 6, Zagreb, Croatia ' Faculty of Economics and Business, University of Zagreb, Trg J. F. Kennedya 6, Zagreb, Croatia ' Faculty of Economics and Business, University of Zagreb, Trg J. F. Kennedya 6, Zagreb, Croatia
Abstract: Liquidity management is an important part of every business management. Managing optimal level of liquidity in order to service debts promptly is dependent on several features, such as the structure of assets, compatibility of assets to sources of assets, macroeconomic environment etc. The aim of the paper is to investigate the relationship between managers' production assessments and expectations and their liquidity assessment. Empirical analyses are conducted on the basis of the dataset derived from Croatia's business survey in manufacturing industry and in retail trade, conducted quarterly, in accordance with the harmonised EU business survey (BS) methodology, in the period 1995,III-2013,III. The results showed that managers' satisfaction level with liquidity was highly correlated with estimated level of turnover, business situation and finished goods. Empirical survey results confirm forecasting power of BS results and contribute increasing the management awareness of business cycle impact on liquidity management.
Keywords: Croatia; liquidity management; manufacturing industry; manager perceptions; retail industry; retailing; turnover level; business situation; finished goods; forecasting.
International Journal of Business and Globalisation, 2016 Vol.16 No.1, pp.3 - 21
Received: 15 Oct 2014
Accepted: 27 Apr 2015
Published online: 14 Dec 2015 *