Liquidity Management Strategies under Conditions of Economic Uncertainty
Keywords:
Economic uncertainty, liquidity management, financial flexibility, cash flow forecasting, liquidity buffer policies, financial risk managementAbstract
The present study aimed to examine liquidity management strategies under conditions of economic uncertainty This study employed a quantitative, applied research design with a descriptive–analytical and correlational approach. The statistical population consisted of financial managers, treasury specialists, senior accountants, and executive managers working in medium and large organizations in Tehran in 2025. Based on the Krejcie and Morgan sample size table, 285 participants were selected using stratified random sampling, of whom 268 valid responses were included in the final analysis. Data were collected using a researcher-developed questionnaire consisting of 42 items measured on a five-point Likert scale. Content validity was confirmed by expert evaluation, and reliability was established with a Cronbach’s alpha coefficient of 0.91. Data were analyzed using SPSS version 27 and AMOS version 26. Descriptive statistics, Pearson correlation analysis, confirmatory factor analysis, and structural equation modeling were used to evaluate the relationships among variables and test the research model at a significance level of 0.05. Structural equation modeling results indicated that economic uncertainty had a significant positive effect on liquidity management strategies (β = 0.63, p < 0.001), cash flow forecasting practices (β = 0.52, p < 0.001), liquidity buffer policies (β = 0.58, p < 0.001), and financial flexibility (β = 0.55, p < 0.001). Pearson correlation analysis showed significant positive relationships between economic uncertainty and liquidity management strategies (r = 0.61, p < 0.01), cash flow forecasting practices (r = 0.54, p < 0.01), liquidity buffer policies (r = 0.59, p < 0.01), and financial flexibility (r = 0.57, p < 0.01). Additionally, liquidity management strategies were strongly correlated with liquidity buffer policies (r = 0.73, p < 0.01), financial flexibility (r = 0.71, p < 0.01), and cash flow forecasting practices (r = 0.68, p < 0.01), confirming the structural integrity of the liquidity management framework. The findings demonstrate that economic uncertainty significantly influences organizational liquidity management behavior by strengthening liquidity planning, increasing reliance on cash flow forecasting, promoting the maintenance of liquidity buffers, and enhancing financial flexibility. These results indicate that organizations adopt proactive and adaptive liquidity management strategies to mitigate uncertainty-related risks and maintain financial stability. Effective liquidity management serves as a critical mechanism for ensuring organizational resilience, financial sustainability, and operational continuity in volatile economic environments.
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