Crisis Caused Changes in Intrinsic Liquidity Value in Non-Profit Institutions
AbstractLiquid assets which nonprofit institutions holds are not a source of any special interests and although the close to cash assesses together with credit lines available for nonprofit institution are connected with resigning from realization of the part of incomes or costs, nonprofit institutions decide to hold some liquidity reserves. And not only this resulting from transactional needs, but also from precautional and speculative reasons. Investment in liquid reserves resulting from speculative demand for money may be assessed by usage of capital budgeting methods. In the paper, each of these aspects of liquidity was taken into consideration and presented from nonprofit perspective. Nonprofit liquidity value determination may often significantly contribute to the solution of working capital management problems in these institutions.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 43397.
Date of creation: 01 Dec 2012
Date of revision: 19 Dec 2012
Intrinsic liquidity value; Nonprofit financial management; financial liquidity;
Find related papers by JEL classification:
- L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
- A10 - General Economics and Teaching - - General Economics - - - General
- D92 - Microeconomics - - Intertemporal Choice - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-12 (All new papers)
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