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Multinational Cash Management in Europe Towards Centralisation and Disintermediation: The Philips Case

Wim Wester man (University of Groningen, 9700 AV Groningen, The Netherlands)
Henk von Eije (University of Groningen, 9700 AV Groningen, The Netherlands)

Managerial Finance

ISSN: 0307-4358

Article publication date: 1 October 2005

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Abstract

Liberalisation and deregulation of financial markets, lower currency volatility and the introduction of the euro have reduced transaction and bankruptcy costs for multinationals in Europe. Internal European transfers of cash have become easier and cheaper. This has enabled the centralisation of cash management activities. The centralisation at headquarters of multinational enterprises has also opened the road to financial disintermediation. These trends may have helped to create conglomerate benefits in Europe. The case of the cash management at the Netherlands‐based Royal Philips Electronics is used to illustrate these tendencies.

Keywords

Citation

Wester man, W. and von Eije, H. (2005), "Multinational Cash Management in Europe Towards Centralisation and Disintermediation: The Philips Case", Managerial Finance, Vol. 31 No. 10, pp. 65-74. https://doi.org/10.1108/03074350510769929

Publisher

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Emerald Group Publishing Limited

Copyright © 2005, Emerald Group Publishing Limited

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