#Liquid assets in spanish full

Foster (1986) defined the term as a serious liquidity problem that cannot be resolved without a large-scale restructuring of operations or of the business entity. This includes situations of insufficient liquidity, insufficient capital, failure to pay debts and insufficient liquid capital. Carmichael (1972) defined it as a situation in which a company is unable to meet its obligations. The initial studies carried out on financial distress ( Beaver, 1966 Altman, 1968 Deakin, 1972) coincide on with the fact that financial difficulties include the inability to pay debts or preferential dividends and the resulting consequences, overdrawn bank accounts, liquidation for to pay interests of creditors and, even, legal bankruptcy proceedings. The term financial distress has been used for some time to describe different financial problems that affect companies. Detecting the early signs of financial distress constitutes a key area of research for corporate finance, in which the core function is predicting financial problems ( Sun et al., 2013 Inam et al., 2018). In the study of the financial problems suffered by these entities, commonly known as financial distress, the capacity to predict and anticipate the consequences is therefore essential. The financial crisis that began in the summer of 2007 with the bursting of the property market bubble had multiple consequences on the global economy, showing, among other issues, that the financial problems of credit institutions is a social and economic problem that affects companies around the world ( Halteh et al., 2018).

#Liquid assets in spanish full

The full terms of this licence may be seen at Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Copyright © 2019, Jessica Paule-Vianez, Milagros Gutiérrez-Fernández and José Luis Coca-Pérez.