The Effect Of Internal And External Factors On Liquidity Risk : A Study in Food and Beverage Industry in Malaysia on Apollo Food Holdings Berhad

Abstract

Liquidity of a company is very important for a company to know whether the company is able to pay off the short term debt, meet current cash needs and to avoid unpleasant surprise. The purpose of this study is to study the effect of internal factors, external factors and both internal and external factors on the liquidity risk of Apollo Food Holdings Berhad. The study is done by investigating the annual reports from 2015 to 2019. This study used multiple linear regression model to analyze the data. The findings show that debt-to-income ratio is the most significant variable to the liquidity of the company. The company should have a good debt-to-income ratio by increasing company income and paying off high interest debts.