Yang Xiani
Economic Research Center, Kunming University of Science and Technology, Kunming, Yunnan, 650093, China
ABSTRACT
Based on the external financing analysis framework under asymmetric information, this study introduces a chance of reinvestment which could increase the probability of success. And then we analyze its influence on the firms liquidity and risk management through variable-investment model. Both of the theory and numerical calculations show that this kind of profitable growth opportunity could significantly improve the firms ability against liquidity risk.
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How to cite this article
Yang Xiani, 2013. The Firms Liquidity Risk
Management Based on the Variable-investment Model. Journal of Applied Sciences, 13: 3290-3294.
DOI: 10.3923/jas.2013.3290.3294
URL: https://scialert.net/abstract/?doi=jas.2013.3290.3294
DOI: 10.3923/jas.2013.3290.3294
URL: https://scialert.net/abstract/?doi=jas.2013.3290.3294
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