Analysis of Hospital's Financial Liquidity Using the Linear Regression Model: A Panel Data Study in Ahvaz Teaching Hospitals

Liquidity refers to an organization's ability to pay off their debts. The main objective of this study was to determine the factors affecting the hospital's financial liquidity in selected teaching hospital in Ahvaz, Iran. The present research was a cross-sectional and panel data study which was conducted using econometric methods. The statistical population consisted of all teaching hospitals of Ahwaz, southwest of Iran (N=6). The data obtained on variables such as hospital size, profit rate, debts, and ratios of current liquidity, quasi-liquidity, and liquidity were statistically analyzed using the linear regression analysis in Eviews-8. The results of Vale ridge test and data panel test showed that there is a significant relationship between the studied financial indicators and liquidity of hospital. The results also indicated that, based on the 5-year mean values, current liquidity (0.036), quasi-liquidity (0.086), profitability (0.218), debts (0.344), and liquidity (0.453) had the highest to the lowest impact on the liquidity of studied hospital, respectively. According to the study findings, it can be concluded that hospital can raise their liquidity by increasing their size, improving their performance in line with the optimal utilization of assets using optimal methods to provide capital structure, and promoting their service delivery.