TY - JOUR
T1 - A Study on the Attributes of the Productivity–Liquidity Relationship at the Firm Level
AU - Tiruvengadam, Naveen
AU - Elizondo-Noriega, Armando
AU - Beruvides, Mario G.
N1 - Publisher Copyright:
© 2020 American Society for Engineering Management.
PY - 2021
Y1 - 2021
N2 - This study explores the various attributes of the direct relationship between firm-level productivity, measured by total factor productivity, and liquidity, determined by the cash conversion cycle, without the intermediating effect of firm profits. For this objective, panel data is employed to understand the existence, linearity, directionality, type, and seasonality (or its absence) of such a relationship for firms of all sizes across several sampled industries. The results demonstrate that the relationship exists to a considerable extent, is bi-directional, predominantly linear with non-linearity observed in the case of revenue-wise large firms, and primarily negative and seasonal.
AB - This study explores the various attributes of the direct relationship between firm-level productivity, measured by total factor productivity, and liquidity, determined by the cash conversion cycle, without the intermediating effect of firm profits. For this objective, panel data is employed to understand the existence, linearity, directionality, type, and seasonality (or its absence) of such a relationship for firms of all sizes across several sampled industries. The results demonstrate that the relationship exists to a considerable extent, is bi-directional, predominantly linear with non-linearity observed in the case of revenue-wise large firms, and primarily negative and seasonal.
KW - Distance Correlation
KW - Economics of Engineering
KW - Knowledge Management
KW - LASSO Regression
KW - Operations Management
KW - Predictive
KW - Working Capital Management
UR - http://www.scopus.com/inward/record.url?scp=85088927978&partnerID=8YFLogxK
U2 - 10.1080/10429247.2020.1798165
DO - 10.1080/10429247.2020.1798165
M3 - Article
AN - SCOPUS:85088927978
VL - 33
SP - 238
EP - 254
JO - EMJ - Engineering Management Journal
JF - EMJ - Engineering Management Journal
SN - 1042-9247
IS - 4
ER -