The etiology of liquidity crises and how managers can be better prepared

Financial shocks have become an increasingly pervasive feature of the global economic landscape. Among the two most prominent that have faced corporate managers during the past decade are the bursting of the technology bubble in 2000 and the ongoing global financial and economic crisis. These not only have had a chilling impact on the industries most directly involved, but they also occasioned a massive spillover into other industrial sectors, and in financial markets in general. “Contagion” is perhaps the most devastating aspect of such crises. © 2009 Wiley Periodicals, Inc.