The Role of Business Liquidity During the Great Depression and Afterwards
Differences Between Large and Small Firms
Bibliographic Data
| ID | 4954585 |
|---|---|
| Authors | Helen Manning Hunter (Bryn Mawr College, corresponding author) |
| Year | 1982 |
| Volume | 42 |
| Issue | 4 |
| Pages | 883-902 |
| Publication date | 1982-12-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Journal of Economic History (JOURNAL) |
| Journal identifiers | ISSN: 0022-0507 • E-ISSN: 1471-6372 |
| Publisher | Cambridge University Press (CUP) (PUBLISHER) |
| DOI | 10.1017/s0022050700028382 |
| OpenAlex | W2124649966 |
| Language | EN |
| Citations received | 5 |
| References cited | 7 |
This paper describes two contrary developments in corporate finance during the Great Depression. In 1930s downswings the top one percent of firms acquired unusually high rations of liquid assets to receipts, thus withdrawing funds from the spending stream. Smaller firms, however, were forced into highly illiquid positions (by postwar standards) by episodes of monetary restriction in 1931 and 1937. It is argued that both developments made the Depression more severe. A structural change is found after 1945 in the financial behavior of large firms. This is attributed to a new cyclical pattern of price change and lower business uncertainty during postwar recessions
Business · Business cycle · Depression (economics) · Economics · Geography · Great Depression · Macroeconomics · Market liquidity · Monetary economics · Recession · Banking stability, regulation, efficiency · Economic Theory and Policy · Global Financial Crisis and Policies
| Citations per year | 0.13 |
|---|---|
| Citation span | 1986 - 2017 (32) |
| Highly cited | No |