Remodeling of FLIEM: The Cash Management in Polish Small and Medium Firms with Full Operating Cycle in Various Business Environments

Grzegorz Michalski , Małgorzata Rutkowska-Podolska , Adam Sulich


The Financial Liquidity Investment Efficiency Model (FLIEM) was presented and discussed by Michalski (Value-based working capital management: determining liquid asset levels in entrepreneurial environments. Palgrave Macmillan, 2014). Here the Cash Levels in Full Operating Cycle (CLFOC) is proposed as a FLIEM remodelling. Some external factors resulting from the economic situation surrounding the enterprise were pointed out in this paper. These factors interact with the operating cycle of the overall firm operational risk which is reflected in the level of cash held. These are so called environmental conditions we should take into account during considering a model of cash holdings in the full operating cycle firm. The aim of the study was to determine the rules governing the modern cash management in small and medium firms with a full operating cycle with a particular emphasis on environmental conditions influencing firms. At the core of the research hypothesis is the belief that the level of cash and cash management policies in the firm in an integrated manner with other elements resulting from the operating cycle, contribute to moderating the risk of the firm and it can be shown using empirical data from enterprises operating effectively in practical business.
Author Grzegorz Michalski (EaE / IES / DLaC)
Grzegorz Michalski,,
- Department of Labor and Capital
, Małgorzata Rutkowska-Podolska
Małgorzata Rutkowska-Podolska,,
, Adam Sulich
Adam Sulich,,
Publication size in sheets0.65
Book Dudycz Tadeusz, Osbert-Pociecha Grażyna, Brycz Bogumiła (eds.): Efficiency in Business and Economics. Proceedings from the 7th International Conference on Efficiency as a Source of the Wealth of Nations (ESWN), Wrocław 2017, Springer Proceedings in Business and Economics, 2018, Springer, ISBN 9783319682846, [9783319682853], 309 p., DOI:10.1007/978-3-319-68285-3
Keywords in EnglishCash management, Operational risk, Business environments
Languageen angielski
Score (nominal)20
Score sourcepublisherList
ScoreMinisterial score = 20.0, 27-03-2020, ChapterFromConference
Publication indicators WoS Citations = 1
Citation count*8 (2020-09-28)
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* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.