The structure of assets and its relationship to profitability and liquidity of the company on the example of companies listed on new connect

Abstract

In this paper the relationship of assets’ structure with liquidity and profitability of the company is analyzed. The structure of assets may be the result of the strategy implemented by working capital management, investments in fixed assets and the amount of capital acquired on the exchange market through IPO. The study was conducted on a group of non-financial companies listed on NewConnect in 2007–2013 and therefore the small and medium-sized enterprises were taken into consideration, for which up to now the biggest barrier of development was the lack of access to sources of financing. It can therefore be concluded that the capital market has evolved, and NewConnect filled pre-existing capital gap. In order to verify the hypothesis about the assets’ structure relationship with liquidity and profitability of enterprises the correlation analysis and the regression model verification were conducted using the cross-sectional data taken from the financial documents of the units. The results showed that the assets’ structure is correlated with the liquidity and profitability of the enterprises, and its level is primarily affected by current ratio, receivables turnover, cash flow from operations to total assets and return on equity.

Keywords

• struktura aktywów
• płynność finansowa
• rentowność