With the financial crisis, many firms suffered from liquidity shortages and needed to quickly change their way of working to release capital from the operations. Scholars argue that firms should handle immediate crisis with short-term measures first, and then change the underlying organizational routines to prevent recurrence. The management of working capital has received increased attention amongst corporate managers as a result of the crisis, whereby it is interesting to understand how firms can reduce their working capital in a sustainable way. By using the problem-finding and problem-solving approach, this study explores how successful firms have found and solved problems to make them sustainable. To answer the research question a multiple-case study is performed, where five firms are explored through interviews with key respondents. The study indicates that urgency is the main driver for both introducing and increasing the focus on working capital management. Different strategies for obtaining sustainable working capital management are found, where focus and commitment from the top management is suggested to be the glue that makes it last. It is furthermore suggested that managers have two main tools for creating and sustaining desired routines and practices; communication and control.

<p>ABSTRACT</p><p>TITLE The investors guide to hedge fund strategies – A comparing study of hedge fund strategies on the Swedish market.</p><p>COURSE Bachelor Thesis in Finance </p><p>KEYWORDS Hedge funds, Hedge fund strategies, Swedish </p><p>hedge fund market, Investors, Average return, Riskadjusted return</p><p>The Thesis</p><p>Investor’s general knowledge about hedge funds and hedge fund strategies, is compared to other investment alternatives low. The purpose of this thesis is therefore to clarify to investors how examined hedge fund strategies separate concerning risk and return in hedge funds. This, in order to facilitate for investors understanding which hedge fund strategy will be more suitable for them. </p><p>To achieve this, the thesis is mainly focusing on quantitative data, which is complemented with qualitative findings in terms of a questionnaire. The hedge funds have been categorized after selected strategy. Furthermore a comparison between the strategies, as well as towards an independent market index has been made, using different measures of risk. </p><p>The thesis show that all strategies generate less return compared to the stock-related index OMXS, on the other hand the strategies shows a lower level of risk. Fund – of – funds have the best average return and risk-adjusted return, while Multi-strategy have the lowest risk. Macro is the only strategy who achieved quarterly absolute return.</p>

<p>This study investigates the effect of company characteristics on the working capital management. We employed quantitative method to examine the relationship between company characteristics and the cash conversion cycle as a measure of working capital management in Swedish listed companies. The company characteristics include profitability, operating cash flow, company size, sale growth, current ratio and debt ratio. The sample consists of 40 companies in the large cap investment segment listed on NASDAQ OMX Stockholm Exchange. Financial data are extracted from companies’ annual reports of year 2007 and 2008 in order to calculate financial ratios used in the study.</p><p> </p><p>Using regression analysis, our results indicate that profitability, operating cash flow, company size and sale growth affect the company’s working capital management. First, we find that there is a significant positive association between profitability and the cash conversion cycle. Second, we find that the cash conversion cycle have significant negative relationship with operating cash flow, company size and sale growth. Further, we examined the industry effect and find significant positive relations with the cash conversion cycle in four industry classifications as follows: materials, industrials, health care and information technology.</p>

This study investigates the effect of company characteristics on the working capital management. We employed quantitative method to examine the relationship between company characteristics and the cash conversion cycle as a measure of working capital management in Swedish listed companies. The company characteristics include profitability, operating cash flow, company size, sale growth, current ratio and debt ratio. The sample consists of 40 companies in the large cap investment segment listed on NASDAQ OMX Stockholm Exchange. Financial data are extracted from companies’ annual reports of year 2007 and 2008 in order to calculate financial ratios used in the study.   Using regression analysis, our results indicate that profitability, operating cash flow, company size and sale growth affect the company’s working capital management. First, we find that there is a significant positive association between profitability and the cash conversion cycle. Second, we find that the cash conversion cycle have significant negative relationship with operating cash flow, company size and sale growth. Further, we examined the industry effect and find significant positive relations with the cash conversion cycle in four industry classifications as follows: materials, industrials, health care and information technology.

Syfte:                  Working Capital Management handlar om rörelsekapitalstyrning och är enligt litteraturen av vikt speciellt för mindre företag. Anledningen är att deras kapitalstruktur består av en hög andel omsättningstillgångar och kortfristiga skulder. Working Capital Management innebär i stora drag att optimera rörelsekapitalet i företaget. Eftersom denna uppsats är en pilotstudie är syftet att göra en förundersökning om arbetet med Working Capital Management inom mindre och medelstora företag. Avstampet tas i forskningsfrågorna Använder sig mindre och medelstora företag av Working Capital Management? Känner de till begreppet? Metod:                Den vetenskapliga metoden är en deduktiv, kvalitativ forskningsansats. Primärdata samlas in via webenkäter som sedan analyseras och tolkas utifrån en kvalitativt och hermeneutisk ansats. Slutsatser:           Begreppet Working Capital Management överlag inte är något som de mindre och medelstora företagen vet innebörden av. Respondenterna anger att de inte använder sig av detta begrepp men svar på andra frågor motsäger detta då flertalet av de modeller och nyckeltal som ingår i begreppet ändock används.

Diss. Stockholm : Handelshögskolan, 2009.

Firms that face seasonal demand account for an important fraction of the U.S. economy. However, there is surprisingly little evidence on these firms' financing decisions. Yet, studying these decisions provides a natural setting to shed light on the types of capital (i.e. cash or debt) that firms use to manage short-term financing needs. Using seasonal firms as a setting to examine this issue, I show that seasonal financing needs are met with debt with low exposure to information asymmetry, such as short-term debt and trade credit. I further show that cash reserves, which have high carrying costs and can at time lead to agency problems, are not used for seasonal financing needs. Further, as financial flexibility theory would predict, I document that seasonal firms maintain more conservative financial policies to increase the ability to use debt for short-term financing needs. Specifically, seasonal firms are less levered and have long-term debt with a longer average maturity. Further, seasonal firms adjust toward leverage targets slower during fiscal quarters when debt is used for short-term financing. Overall, my findings indicate that firms minimize costs associated with short-term financing needs by using debt with low issuance costs and the use of this debt impacts the overall capital structure of the firm.

ABSTRACT TITLEThe investors guide to hedge fund strategies – A comparing study of hedge fund strategies on the Swedish market. COURSEBachelor Thesis in Finance KEYWORDSHedge funds, Hedge fund strategies, Swedish hedge fund market, Investors, Average return, Riskadjusted return The Thesis Investor’s general knowledge about hedge funds and hedge fund strategies, is compared to other investment alternatives low. The purpose of this thesis is therefore to clarify to investors how examined hedge fund strategies separate concerning risk and return in hedge funds. This, in order to facilitate for investors understanding which hedge fund strategy will be more suitable for them. To achieve this, the thesis is mainly focusing on quantitative data, which is complemented with qualitative findings in terms of a questionnaire. The hedge funds have been categorized after selected strategy. Furthermore a comparison between the strategies, as well as towards an independent market index has been made, using different measures of risk. The thesis show that all strategies generate less return compared to the stock-related index OMXS, on the other hand the strategies shows a lower level of risk. Fund – of – funds have the best average return and risk-adjusted return, while Multi-strategy have the lowest risk. Macro is the only strategy who achieved quarterly absolute return.

The dissertation begins with the explanation of the framework of the dissertation, discusses the background of the study, the motivation and value of the study. The problem statement and study objectives are defined as well as the research methodology. In line with the objectives of the study, various capital structure theories are examined the importance of the weighted average cost of capital is analyzed and the specific components that make up the weighted average cost of capital namely, the cost of equity and cost of debt are explored. Further more the signaling and agency costs theories are also extensively discussed and many other concepts and theories of significance to capital structure management. The corporate profile of Aspen Pharmacare is discussed as well as the industry within which the company operates, the strategic alliances and agreements entered into, in line with the company's growth strategy. The company's financial statements are analysed so as to compute the gearing level. The dissertation concludes by saying that the gearing ratio needs to be looked at in comparison to the company peers in the industry, so as to best establish the norm of the industry, and that, it is only then that a conclusive statement can be made as to whether the company gearing strategy is appropriate or not. / Thesis (MBA)-University of Natal, 2003.

The primary objective of any corporation should be shareholder wealth maximisation. A firm's working capital policies have an effect on the firm's expected future returns and the risk associated with the returns, which ultimately have an impact on shareholder wealth. Efficient working capital management is a fundamental portion of the overall corporate strategy to create shareholder value. In this study the relationship of corporate profitability and working capital management was investigated. This relationship is examined using regression analysis. A sample of 118 firms listed on the Johannesburg Securities Exchange (JSE) for the period 2003 to 2007 was used. The purpose of this study is to establish whether a relationship exists between working capital management efficiency and profitability, considering the cash conversion cycle and operating profitability of the firm. The results of the regression analysis indicated that a statistical significance exists for three of the five years (2003 - 2005) analysed between profitability, measured with the gross operating profit, and the cash conversion cycle. It is observed (2003-2005 regression results) that a lower gross operating profit is associated with an increase in number of days accounts payable. The negative relationship between accounts receivable and firms' profitability (for 2003-2005) suggests that less profitable firms will pursue a decrease of accounts receivables in the attempt to reduce cash gap in the respective cash conversion cycles. The negative relationship between the number of days inventory and corporate profitability (for 2003-2005) suggests that a sudden decrease in sales accompanied by mismanagement of inventory, will lead to tying up excess capital at the expense of profitable operations. Managers or owners of firms can improve profits for firms by handling correctly the cash conversion cycle and keeping each individual component (accounts receivable, accounts payable and inventory) to an optimum level. These results (for 2003-2005) suggest that managers can create value for shareholders by reducing the cash conversion cycle and its individual components. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2009.