The Impact of Internationalization on Commercial Firms' Liquidity

The paper shows that exporters often suffer from liquidity shortages and suggests that to promote exports, the governments should take steps to provide exporters access to additional operational financing and information, which would reduce exporting risks. The paper also shows that corporate liquidity is impacted by the unstable economic situation in the country and excessive public debt, which forces companies to create additional liquidity buffers. In particular, the paper analyses the relationship between the internationalization of a company and its liquidity (and all significant determinants of corporate liquidity). The hypotheses which are positively verified in this paper are that there exists a positive relationship between the fact of internationalization and a quick liquidity ratio (H0) and that there exists a linear relationship between the level of internationalization and a quick liquidity ratio (H1). The paper shows that for four analyzed countries (Bosnia and Herzegovina, Greece, France, and the United Kingdom) there existed a positive relationship between the fact of exporting and the level of liquidity and also that there existed a relationship between the share of export sales in total sales and the liquidity. In other words, the paper results show that the more exports a company has, the higher is the liquidity it maintains in its assets.