Pub Date : 2020-05-28DOI: 10.18601/17941113.n17.06
Diana L. Guavita F., John Freddy Moreno Trujillo
Spanish Abstract: En este artículo se presenta la deducción de la ecuación diferencial parcial de segundo orden asociada al problema de valoración de opciones asiáticas aritméticas continuas, junto con la aplicación de la transformada de Fourier sobre los términos de la ecuación resultante después de una serie de cambios de variable. Se obtiene una solución analítica para el valor de este tipo de opciones.
English Abstract: The second-order partial differential equation associated with the problem of pricing continuous arithmetic Asian options is presented, together with the application of the Fourier transform on the terms of the resulting equation after a series of variable changes. An analytical solution is obtained for the value of this type of options.
{"title":"Valoración analítica de opciones asiáticas aritméticas continuas mediante transformadas de Fourier (Analytical Pricing of Continuous Arithmetic Asian Options Using Fourier Transforms)","authors":"Diana L. Guavita F., John Freddy Moreno Trujillo","doi":"10.18601/17941113.n17.06","DOIUrl":"https://doi.org/10.18601/17941113.n17.06","url":null,"abstract":"<b>Spanish Abstract:</b> En este artículo se presenta la deducción de la ecuación diferencial parcial de segundo orden asociada al problema de valoración de opciones asiáticas aritméticas continuas, junto con la aplicación de la transformada de Fourier sobre los términos de la ecuación resultante después de una serie de cambios de variable. Se obtiene una solución analítica para el valor de este tipo de opciones.<br><br><b>English Abstract:</b> The second-order partial differential equation associated with the problem of pricing continuous arithmetic Asian options is presented, together with the application of the Fourier transform on the terms of the resulting equation after a series of variable changes. An analytical solution is obtained for the value of this type of options.","PeriodicalId":208149,"journal":{"name":"Finance Educator: Courses","volume":"79 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117242227","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The upswing of competition in banking business environment today has necessitated Banks to be preoccupied by the quest for intensive research to discover a potential Technical breakthrough capable of contributing to the muscle of beating and outperforming their competitors, to survive and remain afloat .The only tool today ,to be used to champion in such a situation is to find a strategic tool that can improve on the banks service delivery and efficiency in conduction of daily operations. This is what led to the introduction of mobile banking. Mobile banking is a service provided by banks that allows their customers to conduct financial transactions remotely using mobile device. The study examines the effect of mobile banking on financial performance of deposit money banks in Maiduguri Borno State with a particular reference to U. B. A Maiduguri main branch. Pearson product moment correlation coefficient (PPMCC) was used to determine the strength and direction of linear relationship between the variables. The researcher used survey research method in obtaining his findings. Fifty (50) questionnaires were administered but only twenty five (25) were retrieved and the responses were subjected to tabular analysis in line with statistical package of social science. The major finding of the study was that mobile banking does not have any positive effect on financial performance of deposit money banks in Maiduguri. The researcher in his conclusion stated that as the rate of adoption if mobile increases, the financial performance of deposit money banks can decrease. The researcher's major recommendation to deposit money banks in Maiduguri is that they should attach importance to investing in R&D so as to discover another potential technological banking breakthrough that would Supercede mobile Banking''.
{"title":"Effect of Mobile Banking on Financial Performance of Deposit Money Banks in Maiduguri Borno State {A Case of United Bank of Africa (Uba) PLC, Maiduguri Main Branch}","authors":"Mohammed Usman","doi":"10.2139/ssrn.3612701","DOIUrl":"https://doi.org/10.2139/ssrn.3612701","url":null,"abstract":"The upswing of competition in banking business environment today has necessitated Banks to be preoccupied by the quest for intensive research to discover a potential Technical breakthrough capable of contributing to the muscle of beating and outperforming their competitors, to survive and remain afloat .The only tool today ,to be used to champion in such a situation is to find a strategic tool that can improve on the banks service delivery and efficiency in conduction of daily operations. This is what led to the introduction of mobile banking. Mobile banking is a service provided by banks that allows their customers to conduct financial transactions remotely using mobile device. The study examines the effect of mobile banking on financial performance of deposit money banks in Maiduguri Borno State with a particular reference to U. B. A Maiduguri main branch. Pearson product moment correlation coefficient (PPMCC) was used to determine the strength and direction of linear relationship between the variables. The researcher used survey research method in obtaining his findings. Fifty (50) questionnaires were administered but only twenty five (25) were retrieved and the responses were subjected to tabular analysis in line with statistical package of social science. The major finding of the study was that mobile banking does not have any positive effect on financial performance of deposit money banks in Maiduguri. The researcher in his conclusion stated that as the rate of adoption if mobile increases, the financial performance of deposit money banks can decrease. The researcher's major recommendation to deposit money banks in Maiduguri is that they should attach importance to investing in R&D so as to discover another potential technological banking breakthrough that would Supercede mobile Banking''.","PeriodicalId":208149,"journal":{"name":"Finance Educator: Courses","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117195201","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper documents that development exposure is an important determinant of private real estate returns and market risk exposure. It also documents that open-end private real estate funds have time-varying, procyclical market risk exposure through their development activities. As such, these funds are disproportionately exposed to the downside of the market cycle. Lastly, I find that fund flow pressure is the primary driver of time-varying development exposure. Funds buy a higher proportion of safe, liquid assets compared to risky, illiquid assets when they have larger unfulfilled subscriptions. While this increases assets under management quicker, it also hurts existing investors by decreasing their market risk exposure at the time when it is the most desirable and beneficial. Additionally, funds stop developing as redemption requests increase, leading to lower market risk exposure when the market recovers.
{"title":"Private Real Estate Returns, Style Drift, and Procyclical Risk Taking","authors":"Spencer J. Couts","doi":"10.2139/ssrn.3602196","DOIUrl":"https://doi.org/10.2139/ssrn.3602196","url":null,"abstract":"This paper documents that development exposure is an important determinant of private real estate returns and market risk exposure. It also documents that open-end private real estate funds have time-varying, procyclical market risk exposure through their development activities. As such, these funds are disproportionately exposed to the downside of the market cycle. Lastly, I find that fund flow pressure is the primary driver of time-varying development exposure. Funds buy a higher proportion of safe, liquid assets compared to risky, illiquid assets when they have larger unfulfilled subscriptions. While this increases assets under management quicker, it also hurts existing investors by decreasing their market risk exposure at the time when it is the most desirable and beneficial. Additionally, funds stop developing as redemption requests increase, leading to lower market risk exposure when the market recovers.","PeriodicalId":208149,"journal":{"name":"Finance Educator: Courses","volume":"64 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132486050","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The study discussed the impact of programmed accounting analysis (PAA) for the financial statements on qualitative characteristics of useful financial information. The practical study was conducted by an interview with the CEO for accounting information system company, The development in accounting science does not keep pace with the development in information technology, In recent times, important technological developments have emerged that directly affected accounting, but the international accounting standards have not issued accounting standards that address these developments, and that the issuance of a standard in this regard requires long time, and as an example of these developments is online employment, digital currencies and electronic wallets. PAA affects and is affected by the fundamental qualitative characteristics of accounting information (relevance and faithful expression), and the Enhancing qualitative characteristics of accounting information (Comparability, verifiability, timeliness and understandability).
{"title":"The Impact of Programmed Accounting Analysis (PAA) for the Financial Statements on Qualitative Characteristics of Useful Financial Information","authors":"Zaher Hosni Elmashharawi","doi":"10.2139/ssrn.3582578","DOIUrl":"https://doi.org/10.2139/ssrn.3582578","url":null,"abstract":"The study discussed the impact of programmed accounting analysis (PAA) for the financial statements on qualitative characteristics of useful financial information. The practical study was conducted by an interview with the CEO for accounting information system company, The development in accounting science does not keep pace with the development in information technology, In recent times, important technological developments have emerged that directly affected accounting, but the international accounting standards have not issued accounting standards that address these developments, and that the issuance of a standard in this regard requires long time, and as an example of these developments is online employment, digital currencies and electronic wallets. PAA affects and is affected by the fundamental qualitative characteristics of accounting information (relevance and faithful expression), and the Enhancing qualitative characteristics of accounting information (Comparability, verifiability, timeliness and understandability).","PeriodicalId":208149,"journal":{"name":"Finance Educator: Courses","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132696325","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The authors of the book “Business Analysis and Valuation Using Financial Statements” are Krishna G. Palepu, PhD and Paul M. Healy, PhD, ACA. Both are subject matter experts in business administration and professors at Harvard University. These professors in addition to being forces to reckon with as far as business research is concerned, are part of various academic boards and are authors of numerous academic books. Financial statements provide various forms of business analysis. These analyses range from: monitoring and judging firms’ performance relative to competitors; providing insights on the financial policies to be used; financial reports to investors including evaluation of new business to be acquired. They can be used to rate and evaluate companies before they are recommended to clients by security analysts; valuation of prospective buy outs, mergers and acquisitions and also come in handy in the evaluation of the creditworthiness of customers before they are given loans by banks (Healy & Krishna, 2012).
《利用财务报表进行商业分析和估值》一书的作者是Krishna G. Palepu博士和Paul M. Healy博士。两人都是工商管理领域的专家，也是哈佛大学的教授。这些教授除了在商业研究方面是不可忽视的力量之外，还是各种学术委员会的成员，并著有许多学术书籍。财务报表提供各种形式的业务分析。这些分析包括:监控和判断公司相对于竞争对手的表现;就拟采用的财务政策提供见解;向投资者提交财务报告，包括对拟收购新业务的评估。在证券分析师向客户推荐公司之前，它们可以用来对公司进行评级和评估;对潜在的收购、合并和收购进行估值，在银行向客户提供贷款之前，对客户的信誉进行评估也会派上用场(希利&;克里希纳,2012)。
{"title":"Answers to Questions in Chapter 1 & 2 of Business Analysis & Valuation Using Financial Statements by Krishna, G. Palepu and Healy, Paul M.","authors":"D. Kyeyune","doi":"10.2139/ssrn.3582586","DOIUrl":"https://doi.org/10.2139/ssrn.3582586","url":null,"abstract":"The authors of the book “Business Analysis and Valuation Using Financial Statements” are Krishna G. Palepu, PhD and Paul M. Healy, PhD, ACA. Both are subject matter experts in business administration and professors at Harvard University. These professors in addition to being forces to reckon with as far as business research is concerned, are part of various academic boards and are authors of numerous academic books. Financial statements provide various forms of business analysis. These analyses range from: monitoring and judging firms’ performance relative to competitors; providing insights on the financial policies to be used; financial reports to investors including evaluation of new business to be acquired. They can be used to rate and evaluate companies before they are recommended to clients by security analysts; valuation of prospective buy outs, mergers and acquisitions and also come in handy in the evaluation of the creditworthiness of customers before they are given loans by banks (Healy & Krishna, 2012).","PeriodicalId":208149,"journal":{"name":"Finance Educator: Courses","volume":"321 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134131260","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A cash flow’s value depends on its (1) expected amount, (2) risk and (3) time of occurrence. This applies especially to uncertain payments that are generated by a company for its stake-holders. However, a cash flow’s risk is not adequately considered when it comes to valuation by the traditional DCF method. This is owed to the fact that historical stock return fluctuations, rather than the risk of cash flows, are the subject of the beta factor in Capital Asset Pricing Models (CAPM).
To summarise the dark, likely-to-be-hidden secret of corporate valuation practice (see also Damodaran, 2018): a company’s true opportunities and threats (risks) are currently ignored. The failure to explicitly consider, or ‘typify’, threats and opportunities (see Henselmann, 2006, pp. 144ff., Berger and Gleißner, 2018 and Gleißner 2019e) can lead to the undervaluation of a company which, in fact, has (1) good opportunities, (2) low cashflow volatility and (3) a very good rating.
This working paper clarifies the significance and effects of earnings risk, in general, and of insolvency risk, more precisely.
现金流量的价值取决于(1)预期金额，(2)风险，(3)发生时间。这尤其适用于公司为其股东产生的不确定支付。然而，传统的现金流现金流法在估值时没有充分考虑现金流的风险。这是因为在资本资产定价模型(CAPM)中，贝塔因子的主题是历史股票收益波动，而不是现金流的风险。总结一下企业估值实践中可能隐藏的黑暗秘密(另见Damodaran, 2018):公司真正的机会和威胁(风险)目前被忽视了。未能明确考虑或“典型化”威胁和机会(见Henselmann, 2006, pp. 144ff)。(Berger and Gleißner, 2018 and Gleißner 2019e)可能导致一家公司的估值被低估，而这家公司实际上具有(1)良好的机会，(2)低现金流波动性和(3)非常好的评级。本工作文件更准确地阐明了一般情况下盈余风险和破产风险的重要性和影响。
{"title":"Valuation Beyond CAPM: How to Calculate With Earnings Risk and Insolvency","authors":"Werner Gleißner","doi":"10.2139/ssrn.3592371","DOIUrl":"https://doi.org/10.2139/ssrn.3592371","url":null,"abstract":"A cash flow’s value depends on its (1) expected amount, (2) risk and (3) time of occurrence. This applies especially to uncertain payments that are generated by a company for its stake-holders. However, a cash flow’s risk is not adequately considered when it comes to valuation by the traditional DCF method. This is owed to the fact that historical stock return fluctuations, rather than the risk of cash flows, are the subject of the beta factor in Capital Asset Pricing Models (CAPM).<br> <br>To summarise the dark, likely-to-be-hidden secret of corporate valuation practice (see also Damodaran, 2018): a company’s true opportunities and threats (risks) are currently ignored. The failure to explicitly consider, or ‘typify’, threats and opportunities (see Henselmann, 2006, pp. 144ff., Berger and Gleißner, 2018 and Gleißner 2019e) can lead to the undervaluation of a company which, in fact, has (1) good opportunities, (2) low cashflow volatility and (3) a very good rating.<br><br>This working paper clarifies the significance and effects of earnings risk, in general, and of insolvency risk, more precisely.","PeriodicalId":208149,"journal":{"name":"Finance Educator: Courses","volume":"93 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121491158","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this dissertation is to examine practice mechanisms historically used to reconcile material differences in going-concern business valuation indications derived from multiple business valuation methods as applied within and between separate economic income streams and value hierarchy levels.
The contributions of this dissertation are multiple as they relate to the valuation literature that offers vague and conflicting guidance on the use of the prevailing informed judgement and averaging practice-mechanisms to reconcile valuation differences.
From the examination, a rigorous new form of Alternative Practice Mechanism (APM) comprised of procedural, theoretic, and mathematical elements that organize, and augment prevailing going-concern business valuation theories and methods was constructed. This mechanism proposes an in-sync common-factor analysis methodology for going-concern business value indications derived from multiple methods, and augmented valuation theory to address value hierarchy-level issues. The quantitative, deductive research design employed a survey of 315 professional business valuators to assess the key factors comprising the APM. This was facilitated in conjunction with a qualitative, inductive research design that enabled development of Excel model and model illustrations that elaborated on, enhanced, clarified, and corroborated the quantitative survey findings.
The findings confirmed that adopting part, or all, of the APM and its underlying procedural and theoretical augmentations raise significant research and practical implications that may enhance the research, teaching, and application of business valuation theory within academic and professional communities.
The study suffers from its singular focus on going-concerns and ignores businesses that are not, the cross-sectional nature of the research design, and the lack of existing research on the marketability of going-concerns. Overall, the findings of this study may prospectively enhance efficiency in global transactional markets and legal and teaching processes.
{"title":"Reconciling Going-Concern Business Valuation Indications Derived from Multiple Business Valuation Methods","authors":"R. Salter","doi":"10.2139/ssrn.3583995","DOIUrl":"https://doi.org/10.2139/ssrn.3583995","url":null,"abstract":"The purpose of this dissertation is to examine practice mechanisms historically used to reconcile material differences in going-concern business valuation indications derived from multiple business valuation methods as applied within and between separate economic income streams and value hierarchy levels. <br><br>The contributions of this dissertation are multiple as they relate to the valuation literature that offers vague and conflicting guidance on the use of the prevailing informed judgement and averaging practice-mechanisms to reconcile valuation differences. <br><br>From the examination, a rigorous new form of Alternative Practice Mechanism (APM) comprised of procedural, theoretic, and mathematical elements that organize, and augment prevailing going-concern business valuation theories and methods was constructed. This mechanism proposes an in-sync common-factor analysis methodology for going-concern business value indications derived from multiple methods, and augmented valuation theory to address value hierarchy-level issues. The quantitative, deductive research design employed a survey of 315 professional business valuators to assess the key factors comprising the APM. This was facilitated in conjunction with a qualitative, inductive research design that enabled development of Excel model and model illustrations that elaborated on, enhanced, clarified, and corroborated the quantitative survey findings. <br><br>The findings confirmed that adopting part, or all, of the APM and its underlying procedural and theoretical augmentations raise significant research and practical implications that may enhance the research, teaching, and application of business valuation theory within academic and professional communities. <br><br>The study suffers from its singular focus on going-concerns and ignores businesses that are not, the cross-sectional nature of the research design, and the lack of existing research on the marketability of going-concerns. Overall, the findings of this study may prospectively enhance efficiency in global transactional markets and legal and teaching processes.","PeriodicalId":208149,"journal":{"name":"Finance Educator: Courses","volume":"103 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114601880","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper delves into the case study of Tata Group’s plan to acquire stake in GMR Airports Limited (GAL) citing the chronology of events, plausible arguments for the acquisition, statutory response for the acquisition proposal culminating into the clearance of the case by The Competition Commission of India (CCI). The case study also examines the controversies happened during the process. It has been identified that post-merger synergy gain is the motivator for the friendly acquisition. All parties engaged in this acquisition are likely to get a magnified benefit well over the sum of individual gains.
{"title":"A Case Study on Tata Group's Plans to Acquire Stake in GMR Airports Limited (GAL) - in Pursuit of Synergy Gain","authors":"Kaushik Ghosh","doi":"10.2139/ssrn.3577861","DOIUrl":"https://doi.org/10.2139/ssrn.3577861","url":null,"abstract":"This paper delves into the case study of Tata Group’s plan to acquire stake in GMR Airports Limited (GAL) citing the chronology of events, plausible arguments for the acquisition, statutory response for the acquisition proposal culminating into the clearance of the case by The Competition Commission of India (CCI). The case study also examines the controversies happened during the process. It has been identified that post-merger synergy gain is the motivator for the friendly acquisition. All parties engaged in this acquisition are likely to get a magnified benefit well over the sum of individual gains.","PeriodicalId":208149,"journal":{"name":"Finance Educator: Courses","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126925245","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Different countries have developed their own accounting principles over time, making international comparisons of companies difficult. To ensure uniformity and comparability between financial statements prepared by different companies, a set of guidelines and rules are used. Commonly referred to as Generally Accepted Accounting Principles (GAAP), these set of guidelines provide the basis in the preparation of financial statements, although many companies voluntarily disclose information beyond the scope of such requirements.
This paper aims to discuss the main methods to prepare the main financial statements in hospitality sector, so the researchers concluded that financial statements are the main reference in the provision of information on the financial position and performance, and changes in the cash position, they provide each class of financial statements published users a minimum of information to enable them to make decisions, taking into account that any special request every category, including the information unit, can provide them in exceptional cases and requirements depending on the circumstances.
{"title":"Empirical Study of Accounting and Financial Analysis in Hospitality Industry","authors":"Tim Sovaniski","doi":"10.2139/ssrn.3667926","DOIUrl":"https://doi.org/10.2139/ssrn.3667926","url":null,"abstract":"Different countries have developed their own accounting principles over time, making international comparisons of companies difficult. To ensure uniformity and comparability between financial statements prepared by different companies, a set of guidelines and rules are used. Commonly referred to as Generally Accepted Accounting Principles (GAAP), these set of guidelines provide the basis in the preparation of financial statements, although many companies voluntarily disclose information beyond the scope of such requirements.<br><br>This paper aims to discuss the main methods to prepare the main financial statements in hospitality sector, so the researchers concluded that financial statements are the main reference in the provision of information on the financial position and performance, and changes in the cash position, they provide each class of financial statements published users a minimum of information to enable them to make decisions, taking into account that any special request every category, including the information unit, can provide them in exceptional cases and requirements depending on the circumstances.","PeriodicalId":208149,"journal":{"name":"Finance Educator: Courses","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130147112","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper provides contextual explanations on the related aspects of Working Capital (WC) management. The objective of the paper is to illustrate related variables and cash management models in the WC management, especially from an accounting learning point of view. Initially, WC has been defined; and subsequently, WC policy and determination, some useful related ratios, liquidity management in relation to operating cycle and cash conversion cycle of a business, and optimal cash balance and cash management models are explained. All these contextual explanations are supported with some specific examples as exhibits at the end of this paper, especially with the determination of the WC requirement on a cash-cost basis as an operational approach. Further, the use of simple economic order quantity (EOQ) model for determining the required outflow of cash to buy initial production material in a continuous production process has also been explained.
{"title":"Working Capital Management","authors":"S. Senthilnathan","doi":"10.2139/ssrn.3578141","DOIUrl":"https://doi.org/10.2139/ssrn.3578141","url":null,"abstract":"This paper provides contextual explanations on the related aspects of Working Capital (WC) management. The objective of the paper is to illustrate related variables and cash management models in the WC management, especially from an accounting learning point of view. Initially, WC has been defined; and subsequently, WC policy and determination, some useful related ratios, liquidity management in relation to operating cycle and cash conversion cycle of a business, and optimal cash balance and cash management models are explained. All these contextual explanations are supported with some specific examples as exhibits at the end of this paper, especially with the determination of the WC requirement on a cash-cost basis as an operational approach. Further, the use of simple economic order quantity (EOQ) model for determining the required outflow of cash to buy initial production material in a continuous production process has also been explained.","PeriodicalId":208149,"journal":{"name":"Finance Educator: Courses","volume":"386 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122849023","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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