Corporate liquidity management and technical efficiency: Evidence from global listed hospitality enterprises

This paper examines the influence of corporate liquidity resources on technical efficiency. Results show that internally generated corporate liquidity resources (current assets reserve) and those externally imported (cash flow and short-term debt financing) are very different in affecting technical efficiency. Specifically, current asset reserve intensity negatively predicts technical efficiency, while cash flow intensity would positively impact it. Besides, the relation between short-term debt financing intensity and technical efficiency appears to be inverted U-shape; and cash flow intensity can further strengthen the negative relation between current assets reserve intensity and technical efficiency.