Internal fraud as a threat to the liquidity of a commercial organization

Abstract

© 2019, Research Trend. All rights reserved. This study carried out an empirical analysis of the impact of liquidity and its main components on the market value of the largest domestic companies in various industries and regions. We analyzed complex reports of companies from different industries and countries and used 200 observations for 2013-2017. For the purposes of our research, we put forward the following hypotheses: Hypothesis 1: The efficiency of using the working capital of the organization, which includes indicators on the basis of which the level of liquidity is calculated, positively affects its value. Hypothesis 2: the liquidity level of the organization positively affects its value. It is assumed that the higher the value of the organization's liquidity ratio, the higher its value. Both our hypotheses have been confirmed. The obtained results make it possible to conclude that a qualitatively conducted audit in the organization provides reliable financial indicators that can guide the adoption of key financial decisions.