Theoretical and Applied Economics
No. 4 / 2012 (569)
The Economic Crisis and Working Capital Management of Companies
University of Economics in Prague, Czech Republic
Abstract. This article aims to highlight the impact of the economic crisis in the economy at the microeconomic level. The crisis that began in 2007 as a financial crisis, naturally grown into an economic one. Reduced availability of capital has reduced demand from vendors. It also worsened the possibility of rational adaptation, because the company had to deal with only short-term problems and there was not the opportunity and time for strategic management. The biggest problems hit the long inefficient firms(that survived only thanks to temporary excess demand) and growth-oriented businesses, which focused only on short-term time horizon. Paradoxically, firms that have had long-term ineffective conservative financing coped relatively well with the crisis by releasing detainee excessive working capital. At present there is uncertainty and companies are afraid of further development, which, as shown in the article, leads to further problems with working capital.
The article is elaborated as one of outputs of researching project New theory of economy and organizations´ management and their adaptation processes registrated at MŠMT of the Czech republic under registration number MSM 6138439905.
Contents
Study Regarding Fiscal Policy – Corporative Social Responsibility Correlation
Investment Activities of Businesses and the Use of European Financial Support in the Czech Republic at the Time of Crisis
Organisational Behaviour Influence Elements in the New Economic Paradigm
Effects of the Trilemma Policies on Inflation, Growth and Volatility in Bulgaria
Non Security – Premise of Cybercrime
The Economic Crisis and Working Capital Management of Companies
Contributions to the Substantiation of the National, Original and Coherent Strategy of Interruption of the Involution of Romania’s Agriculture
The Swedish Model in Employment. Post-Crisis Solutions
Optimizing Human Resource Management within Companies Experiencing Accelerated Growth, in an Unstable Economy
Modern Gravity Models of Internal Migration. The Case of Romania
The Financial Contribution of International Footballer Trading to the Romanian Football League and to the National Economy
Challenges of the Economic Science During the Crisis