Short-term Financial Management Research Articles

Receivables Management Practices in Small Scale Enterprises

This paper reports the findings of an empirical investigation into the trade credit management practices in small scale enterprises of Anantapur District of Andhra Pradesh. The study involved interviews with owner-managers in 95 SSEs which comprises of six divergent industrial groups. The findings shows that although short-term financial management practices improve as firms grow, there is a scope for the owner-managers of small businesses to strengthen their trade credit management in order to reduce costs and enhance business performance. Moreover, they have to consider other financial options also.

Gestão Financeira de Curto Prazo: Características, Instrumentos e Práticas Adotadas por Micro e Pequenas Empresas

Usually, micro and small enterprises (MPEs) are attractive because of their profitability, but, because of the deficiencies in the short term financial management, they work in a high risk level of liquidity. This fact urges studies about the analysis of the short term working capital management of these enterprises. This way, this paper aimed to investigate the restrictive factors of working capital management in the MPEs, choosing the city of Vicosa, MG as a regional delimitation. In this paper, in which it was considered the exploratory quantitive approach, 172 proprietors of MPEs working in the city mentioned were interviewed. The main results showed that the enterprises do self-financing e have capital cycle corresponding to 56% of the operational cycle and 81 % of the enterprises have short time debt. It is clear that a high number of enterprises do not follow the good practices of the financial administration and do not use control instruments with frequency, enabling the perception of limitations in the financial administration, corroborating to previous studies. It was verified that the maintenance of a correct short term financial administration is far from being unanimous, perishing because of the ignorance and disregard of many entrepreneurs. Practices that go through financial reports elaboration to managers’ knowledge can determine the survivor of the MPE in the dynamic business environment

Short-Term Financial Management.

Most finance students will do short-term finance assignments when they go to work. In recent survey of CEO's, Controllers, and Treasurers that appeared in Financial Practice & Education, the question was asked which elective is the most important and 81% responded a short-term financial management course should be required. Both authors hold a Certified Cash Manager credential. Strengths include broader and better integrated coverage of treasury and working capital management, while using valuation and the cash flow timeline as integrating themes. Up to date presentations of developments in treasury management, banking deregulation, globalization of financial services delivery, electronic commerce, international cash management, and foreign exchange risk with a decision making emphasis throughout offers a complete view for students. This text is appropriate for upper level undergraduate finance courses in short-term financial management, working capital management, treasury management, and cash and cash flow management. It can also fit the MBA level financial management and short-term financial management courses.

Book Reviews

The Journal of FinanceVolume 49, Issue 2 p. 747-767 Book Reviews Book Reviews First published: June 1994 https://doi.org/10.1111/j.1540-6261.1994.tb05162.xRead the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Abstract Book reviewed in this article: Capital Budgeting Under Uncertainty. By RAJ AGGARWAL. Englewood Cliffs, N.J.: Prentice Hall, 1993. Pp. x + 341. Bogle on Mutual Funds: New Perspectives for the Intelligent Investor. By JOHN C. BOGLE. Burr Ridge, Illinois: Irwin Professional Publishing, 1994. Pp. xvi + 320. The Collapse of Federally Insured Depositories: The Savings and Loans as Precursor. By R. DAN BRUMBAUGH JR. New York: Garland Publishing, 1993. Pp. xxii + 240. Collateralized Mortgage Obligations: Structures and Analysis. By FRANK J. FABOZZI, CHARLES RAMSEY, and FRANK R. RAMIREZ. Summit, N.J.: Frank J. Fabozzi Associates, 1993. Pp. vii + 250. Short-Term Financial Management. By TERRY S. MANESS and JOHN T. ZIETLOW. St. Paul, Minnesota: West Publishing Company, 1993. Pp. xix + 675. Canadian Capital Markets. Edited by MICHAEL J. ROBINSON and BRIAN F. SMITH. London, Ontario: Western Business School, The University of Western Ontario, 1993. Pp. iv + 152. Volume49, Issue2June 1994Pages 747-767 RelatedInformation

Innovations in short-term financial management

Innovations in short-term financial management

Short-Term Financial Management.

Short-Term Financial Management.

Cash Planning and Credit-Line Determination with a Financial Statement Simulator: A Case Report on Short-Term Financial Planning

This paper has presented a model for solving a central problem of short-term financial management — cash planning and credit-line determination. The core of the model is an algorithmic procedure for finding the best cash plan and the associated credit line for a given operating plan and long-term financial plan. Since the model requires a computation of cash balances, it must be embedded in a financial statement simulator.The two keys to the model are:1. the use of priority rankings in specifying the order in which assets and liabilities are used to change cash balances;2. the separation of solution constraints into two classes—consistency conditions given by C1, C2, and C3 and feasibility conditions stated in C4, C5, and C6. The latter conditions require changes in the long-term plan (or the operating plan) to obtain feasibility of the short-term plan.The use of priority rankings and the separation of solution constraints into these two classes makes possible the formulation of an algorithmic procedure that is computationally efficient and that avoids having to solve a mathematical programming problem.The benefits of the model are: (1) saved time; (2) increased accuracy in cash planning; (3) quick determination of infeasibility with respect to the short-term plan. For a firm already using financial statement simulation, the model is sufficiently easy to program and implement so that saved user time and system expense alone easily justify the cost of developing the system. Finally, a system that automatically handles short-term cash planning is critical for other areas of short-term planning, for meaningful sensitivity analysis, and for long-term financial planning for firms (such as General Recreation) for which a substantial part of the total financing is provided by either credit-line borrowing or commercial paper issuance.Because of the similarity of both banking and financial practice across firms and banks, the basic approach used in this model is applicable to most nonfinancial corporations.