Factors determining the liquidity of companies in the mechanical engineering industry in Slovakia – an empirical study
Factors determining the liquidity of companies in the mechanical engineering industry in Slovakia – an empirical study

Summary/Abstract: Liquidity is one of the main characteristics of the financial situationof a company. A lack of liquidity may seriously affect the continuity ofa firm’s activities. A thorough analysis and knowledge of the factorsaffecting the liquidity of a company are an essential requirement ofthe informed adoption of measures aimed at ensuring company liquidity.This issue is the subject of the presented paper. The mainpurpose of the article is to analyse the development of liquidity in themechanical engineering industry in the Slovak Republic (SK NACArev. 2 28xx – Manufacture of machinery and equipment not elsewhereclassified) during the period of 2015-2018, and to identify the keyinternal and external factors determining liquidity in the industry. Thesurvey was carried out in 2019 on a sample of 398 companies in thespecified industry. Sample representativeness was tested on the basisof the non-parametric chi-square goodness of fit test (χ² distributiontest). The obtained data were processed by means of statisticalmethods. To perform the statistical analysis, we applied the methodsof descriptive statistics, frequency tables and non-parametric tests(the Friedman and Wilcoxon tests). To verify the validity of the formulatedhypotheses, we used the right-tailed test of the hypothesis onthe relative frequency. The main finding of the research is the identificationof the key internal and external factors determining the liquidityof engineering companies in Slovakia. The results of the researchallow companies to take effective measures in managing liquidity andsupporting their favourable development.

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