Search results

An increasing amount of effort has been devoted to cash management in the Netherlands in recent years but a survey undertaken among 350 Netherlands based companies (1982–3) indicates that cash flows are generally badly managed, cash and foreign exchange being handled on the basis of ad hoc opinions rather than soundly conceived cash management policy. Improvements can be achieved through clarification of organisational problems, positioning cash management within the entire financial function of the company, and definition of the foreign exchange managers' tasks and responsibilities.

The purpose of this study is to investigate the impact of corporate governance on working capital management efficiency. This study also seeks to extend the findings of Gill and Shah.

This study applied a co‐relational research design. A sample was selected of 180 American manufacturing firms listed on the New York Stock Exchange (NYSE) for a period of 3 years (from 2009‐2011).

The findings of this study indicate that corporate governance plays some role in improving the efficiency of working capital management.

This is a co‐relational study that investigated the association between corporate governance and working capital management efficiency. There is not necessarily a causal relationship between the two, although the paper provides some conjectures to the findings. The findings of this study may only be generalized to firms similar to those that were included in this research.

This study contributes to the literature on the factors that improve the efficiency of working capital management, and in particular on the association between several features of corporate governance and the efficiency of working capital management. The findings may be useful for financial managers, investors, financial management consultants, and other stakeholders.

The purpose of this paper is to show how firm financial management techniques may be used to improve over all supply chain profitability and performance.

This paper uses a case‐based approach to demonstrate how supply chain financial management techniques, such as cash‐to‐cash and shared weighted average cost of capital (WACC), can reduce the financial costs experience by a supply chain.

This paper provides a methodology to identify and quantify the potential opportunities to increase profitability throughout the supply. Scenarios are offered that illuminate potential supply chain improvements gained by collaborative management of cash‐to‐cash cycles and sharing WACC with trading partners.

These financial techniques are readily available for use in collaborative supply chain structures.

Coordinating financial management across the supply chain is a potential tool to align and improve the financial performance of collaborating firms. This method extends to the supply chain those historically firm‐centric financial management concepts such as return on capital and cash flow. The impact is reduced overall cost generated by leveraging the financial strength of the entire supply chain. During economic downturns and times of tight credit proactively managing financials across the supply chain may be the only way some suppliers remain afloat.

Two firm level financial management approaches are extended and they are adopted for use across the supply chain: cash‐to‐cash management; and leveraging a shared supply chain financing rate. This paper builds on the increasing body of research and practice that suggests trading firm‐optimized for supply chain optimized performance reduces overall cost and improves customer value.

The purpose of this paper is to propose a framework for describing and analyzing misalignments in supply chain management related to changes in supply chain structures, processes and management components.

Based on the systems approach, a single‐case study including several embedded cases from the same supply chain was deployed. This was done according to the abductive research approach, which is favourable when extending existing and developing new theory. Data were collected through observations, interviews and workshops, and later analyzed through pattern matching. The case studied was the Swedish cash supply chain, which was appropriate since it has gone through several changes in its supply chain structure and management.

A framework to describe and analyze misalignments in the supply chain was developed. The framework consists of three steps: first, identify changes in the supply chain, second, Identify Misalignments, and third, identify symptoms. For each step, a specific and more detailed framework was developed in order to facilitate the identification processes.

Using the framework described in this paper a researcher or practitioner acquires a structured approach to mapping the management of a supply chain so that its current misalignments can be identified.

Sees the objective of teaching financial management to be to help managers and potential managers to make sensible investment and financing decisions. Acknowledges that financial theory teaches that investment and financing decisions should be based on cash flow and risk. Provides information on payback period; return on capital employed, earnings per share effect, working capital, profit planning, standard costing, financial statement planning and ratio analysis. Seeks to combine the practical rules of thumb of the traditionalists with the ideas of the financial theorists to form a balanced approach to practical financial management for MBA students, financial managers and undergraduates.

The purpose of this paper is to draw on the theory of institutional isomorphism to investigate how Mississippi’s centralized cash management policy affects the cash management practices in the state’s rural and urban counties.

The study uses a sequential exploratory mixed methods design involving a qualitative documentary analysis and a quantitative analysis of a survey of Mississippi counties.

The study finds that institutional isomorphism drives cash management practices in the counties by influencing how they follow state and agency mandates. Moreover, while urban counties have superior socio-economic indicators compared to their rural counterparts, no differences exist regarding standardized financial indicators, which suggest that local governments in the state may be imitating the practices of one another.

First, states should consider the different financial and economic conditions of their local governments when prescribing cash management policies because uniform policies could stifle local innovation and reduce efficiency in cash management. Second, when there is pressure from a higher-level government or a state agency, local governments may end up imitating one another rather than exploring opportunities for innovation within state policies. Third, state policies should consider requiring education and training in cash management practices that help identify strategies to add value to public funds within the scope of local fiscal capabilities.

The study uses one state to investigate a unique case of centralized cash management practices. The lessons learned can apply to other states seeking to develop a policy for their small local governments without placing the larger ones at a disadvantage.

I seek to identify whether cash flow management can affect the performance and risk of the Greek listed companies.

This study examines the relationship of cash flow management with performance and risk, using a sample of 80 non-financial companies listed in the Athens Exchange. The study covers the period 2018–2022, and panel data analysis is applied. Both financial performance and stock return are taken into consideration, while risk concerns the volatility of the companies’ share prices. The various explanatory variables used include the net cash flow, free cash flow, cash conversion cycle days, cash flow from operating activities, cash flow from investing activities, cash flow from financing activities, inventory days, customer days and supplier days.

The empirical results provide evidence of a positive relationship between financial performance and net cash flow and free cash flow. In addition, operating cash flow is positively related to financial performance. The opposite is the case for investing and financing cash flow. Finally, some evidence of a negative relationship between financial performance and inventory and customer days is provided too. On the other hand, stock return and risk are not related to the cash flow management variables at all.

To the best of my knowledge, this is one of the few studies to examine the relationship of cash flow management with performance and risk, using data from the Greek stock market. The results can form an effective selection tool for investors seeking Greek companies with the highest financial performance potential, which may reward them with higher dividends.

The purpose of this study is to examine the design and implementation of enterprise risk management (ERM) in three large Chinese state-owned enterprises and to develop propositions on integrating ERM, budgetary control system and cash flow stability approach.

This study adopts a field study approach to analyze the risk assessment and risk-return matching of ERM. A field study was carried out over three years from 2008 to 2011 in three Chinese state-owned enterprises. These companies were chosen because less attention has been given to the implementation of ERM in such firms.

First, the authors find that all three companies use budgetary control to identify risks, analyze each risk to determine the potential consequences, determine the acceptable levels of risk, develop a risk mitigation plan and monitor the activities in all business processes that may change the levels of risks continuously. Second, the companies focus on cash flow risks through budgetary control to ensure the stability of cash flows. Finally, the degree of intensity of using budgetary control institutionalization to design and implement ERM has a positive impact on the level of risk acceptance and risk assessment culture.

The findings of this study, however, should be interpreted with caution because this study was conducted in three Chinese state-owned enterprises. To increase the generalizability of the findings, future research is encouraged to replicate this study in different industries, as well as in different countries. Furthermore, future research might also examine the authors’ propositions using a large-scale survey across other regions of the world.

Companies can minimize resistance to change by using budgetary control institutionalization when implementing the ERM. State-owned enterprises can initiate and implement a new risk management system by identifying the potential risks and by developing a risk mitigation plan.

The results of this study will help companies, particularly state-owned enterprises, to improve their performance and become more competitive, which in turn will benefit the society as a whole by performing their risk driver identification, risk driver impact assessment, risk management actions and risk management optimization more effectively.

The authors investigate how the firms use a legitimate system, namely, budgetary control, that is widely accepted and used in China to foster the acceptance and use of ERM. The authors also develop testable propositions of ERM implementation and cash flow stability that will provide useful guidelines for future research.

Over recent years supply chain management has grown in importance because of the proliferation of improved information flows, outsourcing practices, strategic alliances and partnerships, and the reshaping of the organizational focus from functional silos toward integrated activities. Logistics and supply chain management emphasize achieving lowest total cost through synergistic interaction of all supply chain components. The cash‐to‐cash (C2C) metric is an important measure as it bridges across inbound material activities with suppliers, through manufacturing operations, and the outbound sales activities with customers. This paper first defines how to calculate C2C. It then overviews the importance of measuring C2C, using both accounting and supply chain management perspectives. Next, it identifies key leverage points that are necessary to manage C2C effectively. Finally, future research questions are developed that should prove useful in guiding the development of C2C as a usable metric.