THE DETERMINANT OF LIQUIDITY RISK IN VF CORPORATION

Ahmad Saufi, Sarah (2019): THE DETERMINANT OF LIQUIDITY RISK IN VF CORPORATION.

Abstract

This study aims to determine the relationship between dependent variable, quick ratio and other internal and external variables in VF Corporation in United States over five years. For the purpose of analysis, the selected data from 2014 until 2018 of VF Corporation is applied as the sample of data. The examination is being carried out in determine the effect of different variables such as return on assets (ROA), average collection period, debt to income, operational ratio, operating margin, corporate governance index, gross domestic product (GDP), inflation, interest rate, exchange rate and market risk. The finding reveals that the liquidity of the company can be influenced by the operational risk. The study shows average collection period have significant negative effect on firm’s liquidity.

• Item Type: MPRA Paper
• Language: English
• Keywords: liquidity performance, operational risk, and average collection period
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance

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