Liquidity management efficiency of Indian Steel Companies (a Case Study)

Dr. Amalendu Bhunia () and Islam Uddin Khan ()
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Dr. Amalendu Bhunia: Reader in Commerce Fakir Chand College under University of Calcutta Diamond Harbour, West Bengal, India
Islam Uddin Khan: Assistant Professor in Commerce Kaliyaganj College under University of Gour Banga Uttar Dinajpur, West Bengal, India

Far East Journal of Psychology and Business, 2011, vol. 3 No 3 Paper 1 June, issue 1, 3-13

Abstract: Liquidity management is of crucial importance in financial management decision. The optimalof liquidity management is could be achieve by company that manage the trade-off between profitability and liquidity management. The paper analyses the association between the liquidity management and profitability of 230 Indian private sector steel companies obtained from CMIE database. Liquidity management indicators and profitability indicator over the period from 2002 to 2010 are modeled as a linear regression system in multiple correlation and regression analysis. Evidence of petite association between those variables is found.A descriptive statistics discloses that liquidity and solvency position is very satisfactory and relatively efficient liquidity management is found. Multiple regression tests confirm a lower degree of association between the liquidity management and profitability.

Keywords: Secondary data; multiple regression analysis; financial management; India; steel (search for similar items in EconPapers)
JEL-codes: M1 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (1)

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