Determinants of Portuguese Exporting Companies' Liquidity Levels

Abstract

This paper aims to study the variables that influence, positively or negatively, treasury management and liquidity levels required for the normal working of the analyzed companies. It was concluded that several variables studied showed significant statistical relationships with the companies' liquidity level and types of relationships that matched the initial expectations of the study. Thus, the weight of retained net income plus non-cash expenses in total net assets; the Altman discriminant analysis Z score, representative of the level of companies' financing constraints; the size of total net assets; the weight of current assets minus cash and cash equivalents in total net assets and operating profitability, showed relevant relationships with the liquidity level and can be considered determinants of this variable.