Abstract
The Financial Liquidity Investment Efficiency Model (FLIEM) was presented and discussed by Michalski (Value-based working capital management: determining liquid asset levels in entrepreneurial environments. Palgrave Macmillan, 2014). Here the Cash Levels in Full Operating Cycle (CLFOC) is proposed as a FLIEM remodelling. Some external factors resulting from the economic situation surrounding the enterprise were pointed out in this paper. These factors interact with the operating cycle of the overall firm operational risk which is reflected in the level of cash held. These are so called environmental conditions we should take into account during considering a model of cash holdings in the full operating cycle firm. The aim of the study was to determine the rules governing the modern cash management in small and medium firms with a full operating cycle with a particular emphasis on environmental conditions influencing firms. At the core of the research hypothesis is the belief that the level of cash and cash management policies in the firm in an integrated manner with other elements resulting from the operating cycle, contribute to moderating the risk of the firm and it can be shown using empirical data from enterprises operating effectively in practical business.
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Acknowledgments
The presented work and the results are part of the bigger monothematic cycle realized as a part of grant titled: Cash management in small and medium firms that use full operating cycle. The work is supported by the National Science Centre, and financed from the Polish budget resources in the years 2015–2018 according to contract UMO-2014/13/B/HS4/00192 as the research project DEC-2014/13/B/HS4/00192.
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Michalski, G., Rutkowska-Podołowska, M., Sulich, A. (2018). Remodeling of FLIEM: The Cash Management in Polish Small and Medium Firms with Full Operating Cycle in Various Business Environments. In: Dudycz, T., Osbert-Pociecha, G., Brycz, B. (eds) Efficiency in Business and Economics. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-68285-3_10
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