Predicting Liquidity Trap in Companies with Financial Clinic Approach

Financial reporting has significant attention for users. The main objective of financial reporting is to provide information to predict cash flows and  to assess the financial position. One of the tools uses to determine the company's financial position is analysis of financial ratios. Financial ratios are designed to help evaluation of  financial statements. Managing  of the company's liquidity is one of  the most important duties of senior executives and the amount and speed of rotation of the liquidity of a company makes it profitable and competitive.
The main objective of this research is to explain model predictions of liquidity traps and to review the relationship between liquidity trap  with financial clinic approach in companies listed in Tehran stock exchange during the period of 2010 -2014. In this regard, four hypotheses developed by using correlation and regression analysis. The results of the research indicate that there is significant relationship of time by creating Liquidity trap between the lack of favorable efficiency,   unfavorable combination of current assets, lack of effective follow-up collection of receivables and other ill treatment cost - but it is not meaningful.