Corporate Cash Management Research Articles

The determinants of corporate cash management policies: Evidence from around the world

We examine the determinants of corporate cash management policies across a broad sample of international firms. We document that firms in countries with strong legal protection of minority investors are more likely to decrease their cash holdings in response to an increase in cash flow than are firms in countries with weak legal protection. This relationship is most pronounced for firms that are financially constrained and those with high hedging needs. More importantly, we do not find evidence that financial development plays an incremental impact on the cash flow sensitivity of cash, after controlling for the effect of legal protection. Therefore, we argue that the legal protection of investors (rather than financial development) represents the first-order effect in influencing international firms' cash management policies. The results are robust to alternative specifications. In general, our findings reinforce the importance of country-level legal protection of investors in mitigating the effects of firm-level financial constraints and hedging needs on corporate cash management policies.

The Determinants of Corporate Cash Management Policy: Evidence from Around the World

We examine the determinants of corporate cash management policy across a broad sample of international firms. We find that firms in countries with strong legal protection of minority investors are more likely to decrease (increase) their cash holdings in response to an increase in cash flow (stock price) than are firms in countries with weak legal protection. In addition, financially constrained firms display higher sensitivities of cash to both cash flow and stock prices than do financially unconstrained firms. The results are robust to alternative specifications. Our findings highlight the importance of both country-level institutional factors and firm-level financial constraints in managers' corporate cash management policies.

State and Corporate Cash Management: A Comparison

Public and private sector portfolio managers pursue similar goals even though they perform their portfolio management responsibilities in significantly different environments. This article compares and contrasts corporate cash management with state government practices. The comparison and analyses are based on data drawn from a survey of state government portfolio managers and an earlier study which reviewed corporate cash management practice.The comparison and analyses consider investment objectives, permissible assets, assets held, and asset holding period, among other factors. The results suggest that portfolio management practices are quite similar even though the cash management environment is significantly different.

A Decision Support System For A Corporate Cash Management Problem

AbstractThe corporate cash management problem has been extensively dealt with in the literature using a variety of assumptions and modelling techniques. Reported implementations of the results of analytical modelling, however, are scarce. This paper outlines a novel approach to a practicing cash manger's problem which includes a new analytical model of a cash management problem and the implementation of analytical results from this model as the algorithmic component of a visual interactive decision support system.

A Reexamination of the Covered Call Option Strategy for Corporate Cash Management

A Reexamination of the Covered Call Option Strategy for Corporate Cash Management

Developing a Visual Interactive Model for Corporate Cash Management

The operational research/management science journals contain an extensive literature that addresses the corporate cash management problem; yet few, if any, companies make use of any of this published work in their daily cash-management decision making. A review of the literature suggests that the reason for this lack of applications may well be poor problem formulation—the problems that are solved in the literature as ‘cash management’ problems evolve from a ‘hard systems’ view of real-world cash management. However, the problem as perceived by cash managers involves both dynamic and loosely structured components which are difficult to model using classical (i.e. ‘hard systems’) approaches.

Developing a Visual Interactive Model for Corporate Cash Management

Developing a Visual Interactive Model for Corporate Cash Management

An Assessment of Corporate Cash Management Practices

An Assessment of Corporate Cash Management Practices

Management Science Roundup

—“News: Proceedings of International Conference on Very Large Data Bases Available”; —“Corporate Cash Management”; —“From Mexico: Project Coin Mintage”. —Seen elsewhere: (1) Railyard Modeling: Part I, Prediction of Put-through Time. Part II, The Effect of Yard Facilities on Congestion (Transportation Science}, Feb. 1977, Vol. 11, No. 1, pp. 37–59) by E. R. Peterson (Queen's University, Canada); (2) Using a Multi-nation Economic Model: Projection of Economic Relations between Japan and Developing Countries in Asia (1975–1985) (Technological Forecasting and Social Change, 1977, Vol. 10, No. 2, pp. 121–142) by Akira Onishi (Soka University, Tokyo).