Innovations in short-term financial management

1989 ◽  
Vol 32 (6) ◽  
pp. 56-64 ◽  
Author(s):  
William L. Sartoris ◽  
Ned C. Hill
Keyword(s):  
Financial Management ◽  
Short Term

Financial Management of Tires Retail and Restaurant Business in Greater Jakarta

2019 ◽  
Vol 2 (4) ◽  
pp. 267-275
Author(s):  
Sung Suk Kim ◽  
Jacob Donald Tan ◽  
Rita Juliana ◽  
John Tampil Purba
Keyword(s):  
Financial Management ◽  
Management Practices ◽  
Working Capital ◽  
Structured Interviews ◽  
Short Term ◽  
Direct Observations ◽  
Medium Enterprises ◽  
Cash Reserves ◽  
Retained Earnings ◽  
Computerized System

This study aims to explore the financial management practices ofsmall-and-medium-enterprises (SMEs) in the Greater Jakarta (Jabodetabek). We investigate into 3 SME cases by conducting the semi-structured interviews with the owner-managers and using direct observations to know the practices of financial management of SMEs. Through the research, we have found six propositions related to the practice of short-term financial management. They apply bootstraps to ensure availability of working capital. They set aside cash reserves from retained earnings and minimize loans from financial institutions. They have the computerized system to track receivables facilitating working capital needs. They keep theirinventory control efficient to manage working capital. They screen customers using transactional records and reputations to minimize the risk of bad debts.

scholarly journals Lalabet Financial Analysis: Study of Islamic Economics at Micro Level

2021 ◽  
Vol 4 (1) ◽  
pp. 233-244
Author(s):  
Ainorrofiqie Ainorrofiqie ◽  
Umrotul Khasanah ◽  
Akhmad Djalaluddin
Keyword(s):  
Financial Management ◽  
Financial Analysis ◽  
Financial Statements ◽  
The Body ◽  
Short Term ◽  
The Family ◽  
Micro Level ◽  
The Impact ◽  
The Village

This research aims to explore the model of financial management tradition Lalabet in the village of Babbalan District Batuan Sumenep. This study is based on the fact that occurred in the community about the implementation of traditions carried out by the heirs to family members who died. Interpretative qualitative research is used and an in-depth understanding of a problem that occurs is emphasized more. Based on the results of this study, the financial management tradition Lalabet can be done based on accounting equations. The accounts contained in the accounting equation is not used in its entirety and are reported as are generally financial statements. In this case, the source of funds in carrying out Lalabet tradition is sourced from personal money, money and donations from the family, money from Muslimat, debt, and money or goods from Lalabet's proceeds. The impact is the onset of debt both short-term and long-term. While the expenditure is in the form of costs in taking care of the body, costs for tahlilan (petto'arean), pa'polo, nyatos, nyataon, nyaebu, mangaji, ngin-tangin, nyalenin mayyid, and ajege makam (kep-sekep).

Short-Term Financial Management.

1988 ◽  
Vol 43 (5) ◽  
pp. 1291
Author(s):  
James M. Gahlon ◽  
Ned C. Hill ◽  
William L. Sartoris
Keyword(s):  
Financial Management ◽  
Short Term

scholarly journals Financial Management Practices Among Micro Enterprises and their Implications for Loan Repayment: A Case of Solidarity Group Lending of DCB Commercial Bank in Dar es Salaam

2020 ◽  
Vol 12 (12) ◽  
pp. 122
Author(s):  
Daudi Kitomo ◽  
Robson Likwachala ◽  
Cornelio Swai
Keyword(s):  
Commercial Bank ◽  
Financial Management ◽  
Management Practices ◽  
Cluster Sampling ◽  
Cash Holding ◽  
Short Term ◽  
Group Lending ◽  
Loan Repayment ◽  
Common Practices ◽  
Micro Enterprises

The aim of this study was to determine the implications of financial management practices among micro enterprises for loan repayment. The study was confined to Solidarity Group Lending (SGL) customers of DCB Commercial Bank Plc (DCB). Specific objectives included: to identify common practices of managing finances among SGL customers; to determine the extent to which the commonly identified financial management practices influence loan repayment; and to find out challenges facing SGL customers during loan repayment in DCB. A case study research design and cluster sampling were used while data were collected using questionnaires from 80 respondents. Data were analyzed using multiple regressions, and simple descriptive statistics of frequencies, percentages, mean, and range. Results indicate that the common practices of managing finances among the respondents were cash holding 73.8% (n= 59) and short term investments 38.8% (n=31). Regression results revealed that about 70% of variations in ease of loan repayment is influenced by cash holding and short term investment techniques at p=0.000 level of significance (i.e. R = 0.841, R2 = 0.707 and p < 0.05). Key challenges of loan repayment among the respondents were: losses from business (82.6%), payment delays from debtors (67.5%), and difficulty in managing group members to attend their respective loan centers (72.6%). The study recommends that SGL customers need to be educated and sensitized on various financial management techniques and their implications so that they select appropriate techniques in managing profitability and liquidity in their businesses to enhance smooth loan repayment.

scholarly journals Peculiarities Of Financial Management In Family Firms

2012 ◽  
Vol 11 (3) ◽  
pp. 315 ◽  
Author(s):  
Martin R. W. Hiebl
Keyword(s):  
Financial Management ◽  
Family Firms ◽  
Management Practices ◽  
Strategic Decision ◽  
Stewardship Theory ◽  
Business Research ◽  
Short Term ◽  
Traditional Role ◽  
Resource Based View

The majority of firms in market-oriented countries are family-owned. Despite their significant economic importance for these countries, research focusing on family firms is a rather young field within business research, having intensified starting only in the late 1980s. Research regarding the peculiarities of financial management in family firms is especially scarce. Hence, this paper seeks to synthesize existing research and to theoretically analyze the finance and accounting practices and resources of, as well as the role of financial managers in family firms. Using agency theory, stewardship theory, and the resource-based view of the firm, this paper suggests that finance and accounting practices should be adapted to the controlling familys needs. The paper further suggests that family firms are likely to use fewer short-term-oriented financial-management practices than non-family firms. Moreover, compared to non-family firms, financial managers should play a more traditional role in family firms, focusing on core financial management tasks and on advising the controlling family, while not themselves holding strategic decision-making power. The paper concludes with concrete avenues for further research.

scholarly journals The Impact of The Reinsurance Institute on The Financial Results of Insurance Companies

2021 ◽  
Vol 13 (3) ◽  
pp. 117-130
Author(s):  
Marina V. Polyakova ◽  
◽  
Konstantin L. Polyakov ◽  
Keyword(s):  
Risk Management ◽  
Financial Management ◽  
Cash Flows ◽  
Insurance Companies ◽  
Financial Indicators ◽  
Short Term ◽  
Ex Post ◽  
Insurance Business ◽  
Financial Characteristics ◽  
The Impact

Risk management is one of the biggest challenges for financial market participants, in particular for the insurance companies. To solve this problem, the regulator and the insurance market have created a number of institutions, one of which is the institution of reinsurance. Institutions contribute to the solution of problems arising due to the limited rationality and opportunism of participants of contract processes. By use of these institutions organizations have an opportunity to reduce the “ex post” and “ex ante” transaction costs associated with contracts. At the same time, institutions only determine the rules and goals. The organization’s tactics and the way of fulfilling the requirements are completely controlled by its leadership of all levels, which also defines the role of institutions in solving other important business tasks, such as ensuring its efficiency and sustainability. The sustainability and efficiency of the insurance business significantly depends on proper risk management. This study analyses how the use of reinsurance institution as a part of risk-management affects the financial results of insurance companies. The insured events specified in contracts may not occur during their validity period, and one can suppose that in the short-term perspective reinsurance generates mostly outgoing cash flows, which affect the efficiency, solvency and liquidity of the organization. So the aim of the study is to analyse the impact of reinsurance intensity estimated by the share of premium transferred to the reinsurer on the specific financial characteristics of Russian insurance business. As a result, it was revealed that in the short term the impact is significantly negative: the use of reinsurance leads to decrease in financial performance of domestic insurance organizations. This result, of course, does not diminish the significance of reinsurance for risk-management, but it should be taken into account within financial planning and actuarial activities. For completeness, the relationship of various financial indicators with efficiency, solvency and liquidity of insurance companies was also analysed. In particular, it was shown that a change in the influence strength of a number of financial management tools affect above mentioned characteristics. We also noted the need to consider the nonlinear nature of relationships between financial indicators used in study in processes of forecasting and management.

scholarly journals Appropriate Determination of Net Working Capital in Corporate Financial Management

2015 ◽  
Vol 63 (4) ◽  
pp. 1323-1330
Author(s):  
Zdeněk Motlíček ◽  
Josef Polák
Keyword(s):  
Financial Management ◽  
Business Practice ◽  
Decision Making Process ◽  
Working Capital ◽  
Short Term ◽  
Working Capital Management ◽  
Financial Decision ◽  
Long Term Consequences

Liquidity and working capital management belongs to one of the fundamental tasks of short-term financial management. However, in the context of net working capital, the issue of management of current assets and liabilities significantly overlaps with long-term financial management, in which the effects of various decisions have long-term consequences, with considerable inertia and possibility of high losses. The present study is therefore focused on the determination of appropriate amount of working capital, as an important part of financial decision making process in the company. The paper presents an empirical research aiming to identify the appropriate approach to accurate calculations of net working capital and determining its needs. The main contribution of the study can be found in the verification of calculation method of net working capital needs, which, according to the authors, may be beneficial both for business practice and teaching of financial management at universities.

scholarly journals A comparison of strategies for working capital management of listed food companies from Northern Europe

2020 ◽  
Vol 29 (3) ◽  
Author(s):  
Serhiy Zabolotnyy ◽  
Timo Sipiläinen
Keyword(s):  
Financial Management ◽  
Business Environment ◽  
Northern Europe ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Risk And Return ◽  
Working Capital Management ◽  
The Cost ◽  
Synthetic Evaluation

The research presents the application of fuzzy logic for synthetic evaluation of strategies for working capital management of twelve food companies from Northern Europe in 2005–2015. A set of financial ratios formed an aggregated indicator reflecting the complexity of relationships between the level and structure of current assets and liabilities of a firm. Based on the proposed indicator, four types of strategies for working capital management were identified and characterized in terms of risk and return preferences. Only a few companies from the sample demonstrated a direct orientation on liquidity or value within their strategies for working capital management. To retain flexibility in short-term financial management, most firms applied moderate policies for current assets and liabilities that helped them in maintaining liquidity and reducing the cost of financing. The integrity of the proposed method for the synthetic evaluation of working capital management makes it a convenient managerial tool suitable for use in firms operating in a turbulent business environment.

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