Working Capital Management and The Management of Foreign Exchange Risk

Cooper, Kerry

doi:10.1108/eb013539

Cited by 3 publications

(2 citation statements)

References 2 publications

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“…He also suggested that financial executives must restrict their analysis to start with capital budgeting then capital structure and at the end to frame working capital policy. Cooper (1984) expressed that working capital management is more complex for MNCs than corporates engaged only in domestic operations. He narrated that as MNCs are operated in diverse economic and political climates besides various tax jurisdictions, they have to face multiple complexity in conducting global business.…”

Section: Literature Reviewmentioning

confidence: 99%

Multinational working capital management a study on Toyota Motor Corporation

Bhattacheryay

2021

Int. J Fin Econ

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The purpose of the study is to explore the influence of three factors on working capital management-fixation of current assets level-level of investment for each type of current asset components-sourcing of finance at competitive rate. A further study is made on MNCs effectiveness in managing working capital besides to weigh how they re-position profits, cash flows and capital within to maximize profitability. Present globalised and integrated economy, facilitate MNCs to internationalise business by acquiring intangible assets besides optimising resources. MNCs all these activities invite challenges in continuing global presence. In-spite of all odds, MNCs generate, capture value by applying unique business models besides combining with or buying foreign business and play a major force in driving globalisation of world economy. The study is descriptive and based on secondary data, sourced from the annual reports of Toyota Motor Corporation. Statistical techniques like coefficient of correlation, correlation matrix and least squares method, are used for analysis and past six years performances are critically analyzed to justify research questions. The message of the paper is to have now a well-designed global fund transfer policy, economy friendly tax regime and modest regulations in lessening MNCs challenges. K E Y W O R D Seffectiveness in managing working capital, fixation of current assets level, global fund transfer policy, globalised and integrated economy, major force in driving globalisation

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Section: Literature Reviewmentioning

confidence: 99%

Multinational working capital management a study on Toyota Motor Corporation

Bhattacheryay

2021

Int. J Fin Econ

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“…Thus, it is imperative for organizations to develop and implement comprehensive strategies for working capital management to achieve sustainable financial performance and maintain a competitive advantage in the market (Nobanee & Dilshad, 2021). Cooper (1984) highlighted the need for multinational firms to consider the effect of foreign exchange risk when managing working capital.…”

Section: Introductionmentioning

confidence: 99%

The Tacticality of Working Capital

N. Emongor

2023

int.jour.sci.res.mana

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In today's dynamic and competitive business landscape, the effective management of working capital has emerged as a critical factor for the success and sustainability of organizations. Literature review has shown that working capital management can be an effective survival tool in a tough macroeconomic environment where businesses can enhance their ability to meet short-term obligations, improve cash flow, and ultimately achieve long-term success. As businesses strive to maintain financial stability and optimize operational efficiency, tactical working capital management has taken center stage. This research sheds light on the importance of working capital management and how it affects companies. The study goes on to demonstrate that working capital management may influence the performance of a firm and therefore its strategic management can enhance business sustainability.

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Distinguished Competency and Efficacy of Working Capital Management Ensuing Firm Survival, Liquidity, Solvency and Profitability: A Study on Automotive Industry

Bhattacheryay¹

2023

ABR

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Limited research interest in studying working capital management process, is found in the literature. However, working capital management has been the most crucial determinant factor for any industry’s survival, liquidity, solvency and profitability. Therefore, to tackle efficiently liquidity and profitability trade –off, all industries are compelled to improvise their working capital management strategies. Continuation of working capital management process at optimal level, expedites firm's value creation and also facilitates to design framework in smoothening financial constraints so as to make effective usages of firm’s resources. The paper argues that automotive industry occupies a significant proportion of global economy. Therefore, an effort has been made to undertake an in-depth study on the industry. The study besides identifying the industry leader, explores diverse techniques to advance comparative study on the industry efficiency level in managing working capital process. The research outcome facilitates investors to choose the most commendable automotive companies for investments.

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Working Capital Management and The Management of Foreign Exchange Risk

Cited by 3 publications

References 2 publications

Multinational working capital management a study on Toyota Motor Corporation

Multinational working capital management a study on Toyota Motor Corporation

The Tacticality of Working Capital

Distinguished Competency and Efficacy of Working Capital Management Ensuing Firm Survival, Liquidity, Solvency and Profitability: A Study on Automotive Industry

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