Working capital elements on the liquidity management strategy of retail trading companies

This paper investigates receivables management on liquidity management strategy mediated by cash management for the hardware, tools, and equipment of retail trading companies in Tripoli, Lebanon. Accounts receivable are vital for the improvement of the financial situation of the company (Putri, 2024). Liquidity management strategy plays a dynamic role in enhancing cash through transforming assets to cash (Mandipa & Sibindi, 2022). A descriptive method and quantitative techniques were applied in interpreting the data. A sample size of 100 respondents for 20 companies. An SPSS version 26, SPSS version 4.2, beta regression, Hayes Process Model 4 (for the mediator study), and AMOS software were used for identifying data. The results of this paper are defined by providing an acceptable determinant result, a good correlation matrix, Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy, and Bartlett’s test. The reliability result of Cronbach’s alpha defines acceptable results, presenting a satisfactory level of internal consistency for the model size considered. There is a positive correlation between receivables management and cash management, and there is a positive correlation between cash management and liquidity management strategy. The hypothesis that receivables management has a positive impact on companies’ liquidity management strategy, fully mediated by cash management, is accepted.