Search results

1 – 10 of 25
Per page
102050
Citations:
Loading...
Access Restricted. View access options
Article
Publication date: 1 May 1973

Luc A. Soenen

There are several definitions of the concept of “cash flow” in the current financial literature. The article begins by reviewing the most recent definitions of cash flow. An arrow…

669

Abstract

There are several definitions of the concept of “cash flow” in the current financial literature. The article begins by reviewing the most recent definitions of cash flow. An arrow diagram, showing the flows in and out of the pool of corporate cash, has also been developed. The article then proceeds to examine techniques for accelerating the cash flow cycle, in particular the problem of accounts receivable collection. Indeed, the usual transfer time of payments in Europe varies from four to eighteen days, depending on the country of origin and the method of payment. This means that funds are permanently lost in “float” somewhere in the banking system. The amount of “float” results in an actual loss of working capital for the company. This illustrates the importance of techniques to increase the cash turnover. We limit ourselves to the more important techniques. Finally, we define and examine in detail the phenomenon “float”, a crucial concept in cash management.

Details

Management Decision, vol. 11 no. 5
Type: Research Article
ISSN: 0025-1747

Access Restricted. View access options
Article
Publication date: 1 February 1987

Luc A. Soenen

We have to define “cash flow”; it is variously defined in different contexts. Techniques of accelerating the flow are described.

302

Abstract

We have to define “cash flow”; it is variously defined in different contexts. Techniques of accelerating the flow are described.

Details

Management Decision, vol. 25 no. 2
Type: Research Article
ISSN: 0025-1747

Access Restricted. View access options
Article
Publication date: 1 April 1987

Luc A. Soenen

A survey was conducted to gather information on current practices. In general large Belgian companies seem to be rather advanced in the development and application of an efficient…

177

Abstract

A survey was conducted to gather information on current practices. In general large Belgian companies seem to be rather advanced in the development and application of an efficient treasury management system. The relatively high sophistication of their practices may or may not be a sufficient condition for high efficiency.

Details

Management Research News, vol. 10 no. 4
Type: Research Article
ISSN: 0140-9174

Keywords

Access Restricted. View access options
Article
Publication date: 1 April 1991

Robert Grant and Luc A. Soenen

Since the demise of the Bretton Woods System of quasi‐fixed exchange rates in the early seventies, unanticipated exchange rate movements are a fundamental feature of the…

397

Abstract

Since the demise of the Bretton Woods System of quasi‐fixed exchange rates in the early seventies, unanticipated exchange rate movements are a fundamental feature of the international economic environment. The ever increasing degree of exchange rates volatility has spurred the creation of new financing and hedging instruments and techniques. The proliferation of these financial innovations has confounded many treasurers as to the appropriate instrument or technique to be used in resolving a foreign exchange risk management problem. Notwithstanding the persistent and sophisticated nature of current foreign exchange risk management, there are situations where hedging does not protect the firm from large losses caused by unanticipated changes in exchange rates. We present three situations where hedging fails to protect the firm from risks arising from fluctuating exchange rates: first, where the firm has a continuous inflow of foreign currency; second, where foreign exchange risks are compounded by general and relative price risks; and third, where the perfectly hedged firm faces competition from unhedged rivals.

Details

Managerial Finance, vol. 17 no. 4
Type: Research Article
ISSN: 0307-4358

Access Restricted. View access options
Article
Publication date: 1 June 1979

Luc A. Soenen

The traditional profit centre concept of Management has a fatal defect. It concentrates attention on near term reported profit rather than cash flow. The two are not equivalent…

200

Abstract

The traditional profit centre concept of Management has a fatal defect. It concentrates attention on near term reported profit rather than cash flow. The two are not equivalent. Both short term and long term, they tend to move in opposite directions. Near term investment depresses near term reported profit although it may increase profit markedly later. Near term divestment frequently appears as near term profit but also often leads to liquidation of the business in the long run.

Details

Management Decision, vol. 17 no. 6
Type: Research Article
ISSN: 0025-1747

Access Restricted. View access options
Article
Publication date: 1 February 1992

Jeff Madura and Luc Soenen

Over the last 20 years, research has confirmed and reconfirmed the benefits of international diversification. [See Madura (1984) for a review of this research.] However, changes…

277

Abstract

Over the last 20 years, research has confirmed and reconfirmed the benefits of international diversification. [See Madura (1984) for a review of this research.] However, changes in international stock market and foreign exchange market behavior require that some issues be reassessed. First, how do potential gains from international diversification vary across perspectives? Most of the past research focused solely on a U.S. perspective. Solnik (1974) assessed various perspectives, but the period assessed was prior to the inception of floating exchange rates. Because of the high degree of integration of stock markets and the volatility of foreign exchange rales, a reassessment from various perspectives is necessary.

Details

Managerial Finance, vol. 18 no. 2
Type: Research Article
ISSN: 0307-4358

Access Restricted. View access options
Article
Publication date: 1 April 1995

Sharif N. Ahkam

While economic exposure is an important issue for the management of a multinational financial system, few models have been developed to measure this risk. The major challenge to…

377

Abstract

While economic exposure is an important issue for the management of a multinational financial system, few models have been developed to measure this risk. The major challenge to measuring economic exposure is the interdependence of affiliate performances vis‐a‐vis changes in currency values. In this paper, a model has been developed that not only measures the sensitivity of the value of the firm to changes in currency values, but also recognizes the interdependence among the affiliates. The model takes a global view of the problem and also leads to guidelines for managing economic exposure. While the discussion focuses on geographically diversified multinational companies, the content of the paper is equally applicable to domestic companies.

Details

Managerial Finance, vol. 21 no. 4
Type: Research Article
ISSN: 0307-4358

Access Restricted. View access options
Article
Publication date: 1 February 1991

Raj Aggarwal, J. Edward and Louise E. Mellen

Justifying new manufacturing technology is usually very difficult since the most important benefits are often strategic and difficult to quantify. Traditional capital budgeting…

369

Abstract

Justifying new manufacturing technology is usually very difficult since the most important benefits are often strategic and difficult to quantify. Traditional capital budgeting procedures that rely on return measures based on direct cost savings and incremental future cash flows do not normally capture the strategic benefits of higher quality, faster responses to wider ranges of customer needs, and the options for future growth made available by flexible manufacturing technology. Adding to these limitations is the difficulty of using traditional cost accounting systems to generate the information necessary for justifying new manufacturing investments. This paper reviews these problems and recommends procedures useful for assessing investments in flexible manufacturing technology.

Details

Managerial Finance, vol. 17 no. 2/3
Type: Research Article
ISSN: 0307-4358

Access Restricted. View access options
Article
Publication date: 1 January 1996

Adrian Buckley

The financial analysis of international investment decisions is complex. The basic methodology which homes in on incremental cash flows needs to be refined in order to focus upon…

269

Abstract

The financial analysis of international investment decisions is complex. The basic methodology which homes in on incremental cash flows needs to be refined in order to focus upon cash flows which are remittable to the parent company, for it is only these that would logically add shareholder value. Build in the complications of two lots of tax and changing exchange rates and the equation looks anything but simple. But there is another complexity too which renders the traditional discounting methodology less than wholly appropriate. And this applies not just to international investment but to any situation where capital is committed with an option to expand or curtail embedded in it. This is not to say that the typical model cannot be adapted to meet the situation. It can and it is not too difficult.

Details

Managerial Finance, vol. 22 no. 1
Type: Research Article
ISSN: 0307-4358

Access Restricted. View access options
Article
Publication date: 1 April 1991

Raj Aggarwal

This paper contends that, contrary to conventional wisdom, it may be rational to manage translation exposure. Accounting procedures for the translation of foreign currency…

327

Abstract

This paper contends that, contrary to conventional wisdom, it may be rational to manage translation exposure. Accounting procedures for the translation of foreign currency accounts influence the reported income of a multi‐national firm. With non‐zero agency costs, reported income impacts real costs. In such cases, therefore, it may be rational to hedge translation exposure. Empirical evidence of agency costs and the managerial tendency to report higher levels of translated income, based on the early adoption of Financial Accounting Standard No. 52, is presented.

Details

Managerial Finance, vol. 17 no. 4
Type: Research Article
ISSN: 0307-4358

1 – 10 of 25
Per page
102050