The relationship between liquidity and profitability in the food & beverage industry evidence from Europe and United States

This Work Project clarifies the relationship between liquidity and profitability based on a sample in the Food & Beverage (F&B) industry, and comparing the largest European and United States companies. The research concludes that liquidity, proxied by current ratio or quick ratio, correlates with return on assets taken as the measure of profitability, and so does the cash conversion cycle and its components. Moreover, company size correlates with liquidity, and indirectly affects ROA. This research contributes and addresses to managers in the F&B industry and recommends how they should act in order to improve profitability in the industry.

Choosing between past and future regret

Sometimes decisions imply trade-offs that force people to accept missing an opportunity in the past or in the future. It has not yet been clarified whether a past miss or a future miss elicits more regret. In a direct comparison, Shani, Danziger, and Zeelenberg found support for the greater impact of future misses. In an experimental design with 216 students, we replicated their study and tested the strength of the future miss in a separate evaluation and with different periods. The results show that future misses cause less regret than past misses do when evaluated separately. However, future misses made participants change their feelings of regret more than past misses did. Feelings of regret did not decrease when future misses were further away. Our findings support the strength of future misses on regret but also show contrasting effects when evaluated separately. This indicates the further need for research in this topic.