Are there differences in liquidity and solvency measures based on company size?

Huff, Patricia Lee; Harper Jr., Robert M.
June 1999
American Business Review;Jun99, Vol. 17 Issue 2, p96
Academic Journal
Compares the systematic differences in the current and debt ratios between small and large companies. Evidence supporting the contention that systematic differences exist among liquidity and solvency measures for small and large companies; Systematically larger means of both current and debt ratio for small companies.


Related Articles

  • The South African Financial Market and Financing Choice of SMEs. Abor, Joshua; Biekre, Nicolas // Journal of Business & Society;2006, Vol. 19 Issue 1/2, p187 

    This study explores the relationship between the choice of finance (debt-equity) and the development of the financial market (including the stock market and banking sector) in South Africa. The study investigates the extent to which the capital structure of quoted SMEs could be explained by the...

  • Know Thy Worth. Prince, C. J. // Entrepreneur;Feb2006, Vol. 34 Issue 2, p50 

    The article discusses the importance of valuation of small business enterprise in its growth. Vital decisions related to selling the business, recruiting new investors, bringing employees into ownership, a business valuation can help put a precise number on its present and future value. The...

  • The Analysis of the Correlation Between the Sources of Funding, Performance and Risk Exposure of a Company. Florina, Mocanu; Iulia, Istudor Ileana // Ovidius University Annals, Series Economic Sciences;2015, Vol. 15 Issue 1, p827 

    The main question of this article is: is there any optimal financial structure, such as a combination of debts and equity that allows maximizing the value of economic asset? In order to highlight the impact of indebtedness on the risk and the performance of enterprises, we conducted a survey...

  • Entrepreneurs rely on savings to start new businesses.  // Infomat: A Weekly Review;10/11/2002, p4 

    Cites survey findings regarding the importance of personal savings in financing the start-up of new businesses in Canada. Debt-to-equity ratio in several industries; Other major sources of financing; Implications on small and medium-sized businesses.

  • A COMPARISON OF ALTERNATIVE APPROACHES TO EQUITY VALUATION OF PRIVATELY HELD ENTREPREURIAL FIRMS. Adams, Michael; Thornton, Barry // Journal of Finance & Accountancy;Aug2009, Vol. 1, p2 

    Valuation of small entrepreurial businesses requires identifying features that are not generally considered in the valuation model of large public firms. The challenge is to translate financial theory into a practical, available measure that can be employed as a proxy for valuation of small and...

  • Leverage and Foreign Ownership in Hungary. Csermely, Agnes; Vincze, Janos // Russian & East European Finance & Trade;May/Jun2000, Vol. 36 Issue 3, p6 

    Analyzes the leverage and capital structure of the Hungarian corporate sector. Low debt-to-equity ratio of the Hungarian corporate sector by international standards; Growth in credit to enterprises and profitability of firms and banks; Role of the ownership structure in Central and Eastern...

  • Profit Margin And Capital Structure: An Empirical Relationship. Eriotis, Nikolaos P.; Frangouli, Zoe; Ventoura-Neokosmides, Zoe // Journal of Applied Business Research;Spring2002, Vol. 18 Issue 2, p85 

    Investigates the relationship between debt-to equity ratio and probability of a firm, taking into consideration the level of the investment of a firm and the degree of market power. Significance of borrowed capital to the investment of a firm; Important element for the profitability of a firm;...

  • Evaluating the worth of a business is best left to the experts. Schwartz, Don // Business Journal Serving Fresno & the Central San Joaquin Valley;6/11/2001, Issue 322784, p13 

    Suggests that companies should seek expert advice in evaluating the worth of a business. Complexity of the business valuation process; Skills of a knowledgeable business valuator; Factors affecting a sound business valuation.

  • Merciless Exposure. Jones, Llewellyn // Finance Week;Mar2002 Supplement, p42 

    Focuses on the implications of solvency ratios for a company. Indication for survival prospects; Control of cash in debt servicing; Use of the debt-equity ratio for solvency measures.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics