Wpływ płynności finansowej na wzrost przedsiębiorstw notowanych na NewConnect
The Impact of Liquidity on the Growth of Enterprises Listed on NewConnect

Summary/Abstract: The increase in business is relevant both to achieving individual goals of the owners and managers as well as to the macroeconomic objective of economic growth. The analysis of the problem of growth determinants allows the study of the influence of selected factors on the process of development of the business. Financial liquidity is one of such factors together with strategies executed by managers. The aim of the paper is to investigate the effect of liquidity on the growth of enterprises. The study was conducted on a group of companies listed on the alternative stock market NewConnect in the years 2007–2014. The research method is based on regression of cross-sectional data taken from financial documents of units taken into consideration. The results show that the growth of enterprises is positively impacted by the cash conversion cycle and cash productivity of assets. The results of the study lead to the conclusion that more conservative liquidity policy in the dynamics of trading cash and cash performance of assets affects the growth of earnings per share, which properly determine the phenomenon of enterprise growth.

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