Abstract:
Liquidity risk is a type of a risk when a company is unable to meet all current financial liabilities in due time because lack of availability of financial resources. The capital structure is one of the most studied topics in finances because of its strong dependency with company's performance. The main problem that is assessed in this study - how any kind of impact to company's capital structure influence to the liquidity risks in this company? The research presented in this paper involves quantitative analysis of companies in Baltic countries, 400 observations. This makes possible to decide if used data is relevant and useful for the research. After those different types of leverage analysis is performed to determine capital structure impact on liquidity.
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