Many prospective fuel retailers are turning away from the industry due to the high cash volumes and the risks associated with cash management. Due to the regulation of the retail fuel price the profit margins are small. Therefore cash flow management is extremely important as fuel prices are adjusted monthly and cash needs to be readily available to make payments to the fuel suppliers. The cycle of cash from the point of sale system until the money reflects in the bank account can take several days. This affects the cash flow and is critical at the end of month fuel orders especially when there is a fuel price increase. Cash notes in circulation have continued to grow even despite the advent of electronic fund transfers. With service stations now being opened in areas were the inhabitants were regarded as “un-bankable” cash is still the primary means of trade. Security of cash and the security of those handling cash is a deterrent to the opening of businesses that deal with large volumes of cash notes. Anytime a human being touches cash there is a built-in level of inefficiency and the potential for loss. The aim of the study will be conducted into the viability of an electronic drop safe system within the retail fuel outlets in the Phoenix and Inanda areas. A sample of 35 fuel retail sites was drawn from the area with a population of 39 across all fuel brands. Data collection was done via a researcher administered questionnaire that was developed by the researcher. Face to face interviews were used as questions are based on cash security were asked. The respondents’ results revealed that they perceive real benefits to be offered by the electronic cash management system with respect to reconciliation and cash flow efficiencies. / Thesis (MBA)-University of KwaZulu-Natal, Durban, 2011.

I investigate if all-equity firms are a heterogeneous group as it relates to agency costs and accounting quality. All-equity firms are a unique group of firms that choose a “corner solution” as their capital structure. Extant research, supported by well-established theories such as trade-off theory, free cash flow theory, and Jensen’s (1986) control hypothesis, generally conclude that agency conflicts motivate such structure. Research also supports the alternative argument that poor accounting quality makes debt so prohibitive that such firms are driven to this capital structure. I propose that an all-equity structure is not necessarily symptomatic of agency conflicts and poor accounting quality overall. I investigate if different motivations, within an all-equity setting, reflected by free cash flows and growth opportunities, result in different levels of agency cost and accounting quality. By anchoring on theories that link implicit costs of debt to free cash flow levels and growth opportunities, I hypothesize that free cash flows and growth opportunities are strongly linked to the justification or lack thereof for the pursuit of such strategy. I hypothesize and show that firms in the extremes of the free cash flow to growth rate spectrum exhibit significantly different levels of agency cost and accounting quality within the all-equity setting. These results support my main prediction that there exists agency costs and accounting quality differences within the all-equity setting which are associated with free cash flow levels and growth opportunities and that the pessimistic conclusions for pursuing an all-equity strategy reached by prior research should not be generalized to all such firms. / Includes bibliography. / Dissertation (Ph.D.)--Florida Atlantic University, 2015 / FAU Electronic Theses and Dissertations Collection

Este trabalho de pesquisa objetivou investigar os determinantes do caixa das companhias brasileiras a partir de uma inédita amostra pareada de empresas de capital aberto e fechado. Mais do que explorar as principais vertentes teóricas que tentam explicar os fatores que influenciam a gestão das reservas de caixa, analisou-se conjuntamente os impactos das fricções financeiras e dos custos de agência sobre o nível de caixa, particularmente. Nesse contexto, buscou-se explorar a política de caixa em uma economia emergente como o Brasil, cujo ambiente legal e sistema financeiro ainda não estão plenamente consolidados. Além disso, estudou-se a influência da concentração da propriedade acionária sobre o caixa, assim como a velocidade com que as firmas ajustam seu nível de caixa em direção ao nível alvo em diversas situações. Os principais resultados encontrados apontaram que no período analisado as companhias de capital aberto apresentaram um nível de caixa significativamente superior ao das companhias de capital fechado, isto é, evidenciaram que os efeitos do problema de agência sobre a liquidez corporativa são mais acentuados que os efeitos das fricções financeiras. / This research aimed to investigate the determinants of the cash holdings of Brazilian companies from an unprecedented sample of public and private firms. More than just exploring the main theories that attempt to explain the factors that influence the cash management, the impacts of financial frictions and agency costs on the cash level were analyzed together. In this context, I sought to explore the cash policy in an emerging economy such as Brazil, whose legal environment and financial system are not fully consolidated. In addition, I have also studied the influence of the concentration of equity ownership on the cash holdings, as well as the speed of adjustment with which the firms manage their cash reserves towards a target level in several situations. The main results showed that public companies had a significantly higher cash level than private companies in the analyzed period. In other words, they presented that the effects of the agency problems on corporate liquidity are more pronounced than the effects of the financial frictions.

Corporations may experience lower earnings on assets due to the underinvestment of excess cash. Specifically, leaders of nonfinancial firms hold small amounts of cash in mutual fund investments. The primary benefit to understanding mutual funds is the potential to use them to manage excess corporate cash. Using the efficient market hypothesis as a framework for the study, the purpose of this correlational study was to examine the relationship among mutual fund expenses including 12b-1 fees, sales load at purchase, management fees, total capitalization, and performance. Secondary research databases were used, including the Steele Mutual Fund Expert and the U.S. Securities and Exchange Commission, to create a sample of 96 actively managed mutual funds for the years 2010 to 2014. Multiple regression analysis revealed that 12b-1 fees, sales load at purchase, management fees, and total capitalization were not significant predictors of mutual fund performance. Further, in most years, actively managed mutual funds were not able to outpace the benchmark index. However, a small cluster of successful mutual funds (30) exceeded the performance of the S&P 500 by 5.99%. The implications for positive social change include the potential to devise a strategy to invest excess cash, as additional earnings could offset increasing operational costs and ease shareholder concern. Additionally, legislators could use the results of this study to create regulations to promote stable financial markets.

<p>Background: Today there are high claims on organizations to show a positive economic view. To satisfy the demands and expectations from interested parties it is very important to carefully plan the companies tied up capital and cash flows. </p><p>Purpose: The purpose with the thesis is to describe what actions organizations take to resolve the conflict between showing a positive cash flow and the need to tie up capital.The purpose is also to explain the different factors that must be considered when making decisions regarding cash flow and capital tied up. </p><p>Method: A qualitative study of the actions and factors wich must be considered when decisions in swedish construction companies are made regarding cash flow and capital tied up. </p><p>Results: A model of the factors and actions that affect cash flow and capital tied up in projects. This is based on a a priori-model, wich can be used to describe and explain relations in the construction industry.</p>

<p>Detta arbete är skrivet för inköpsavdelningen på enheten PGI4, representerat på Siemens Industrial Turbomachinery i Finspång (SIT), med målet att reducera kostnader genom ett förbättrat arbete med Cash Management. Då inköpt material utgör en så pass stor del av värdet på slutprodukten, nära 60 procent, inses genast vilket stort inflytande inköpsfunktionen har på företagets totala kostnader. Även om Cash Management ägnas störst fokus hos företag med likviditetsproblem, finns det mycket att vinna genom att arbeta aktivt med konceptet också i goda tider.</p><p>Därmed är syftet med arbetet att; ”analysera möjligheterna för inköpsavdelningen på Siemens PGI4 att utnyttja Cash Management för att reducera de totala kostnaderna”.</p><p>Längs arbetets gång har en totalkostnadsmodell tagits fram för att tydliggöra kostnaderna relaterade till inköp, och därefter har områden specifikt intressanta ur ett Cash Management-perspektiv identifierats. Utgående från dessa områden har undersökts hur dagens verksamhet ser ut på SIT samt hur andra företag hanterar liknande aktiviteter. På så vis har lösningarna tagits fram angående vad inköp på SIT bör arbeta annorlunda med, samt hur de kan nå förbättringar.</p><p>Genom tydligare riktlinjer för standardkontrakt, ekonomistyrning och villkor för transporter och prognostisering kan arbetssätt inom inköp förbättras. Ett utnyttjande av kassarabatter kan ge kostnadsbesparingar motsvarande 1% av köpesumman. Rekommendationer kopplade till orderprocessen och fakturering syftar till att undvika de årliga kostnaderna på 2,4 miljoner SEK och 300 000 SEK för tidiga leveranser respektive räntefakturor. Ett utnyttjande av inköparnas kompetens inom lagerstyrning, kan resultera i sänkningar av lagernivåer genom att styra lager per leverantör.</p>

<p>The ongoing financial crisis which has upset the financial markets of the world since the late summer of 2007 has not left Swedish corporations unaffected. Strategies which can be adapted within the firm to improve liquidity and cash flows concern the management of working capital and cash management, areas which are usually neglected in times of favourable business conditions.</p><p>In this study it is examined how companies have adjusted their liquidity strategies before the crisis started to spread worldwide and a year afterwards, in the beginning of the 2009 when economies are in the middle of the turbulence, still feeling the consequences of the financial crisis and not yet started to recover. Research problem consisted of two main questions:</p><p><em>Do active liquidity strategies have a positive effect on company’s profitability in times of financial turbulence/ economic turbulence? </em></p><p><em> </em></p><p><em>Have the importance of key ratios in the measurement of liquidity changed during the time period?</em></p><p>The primary purpose of the study was to evaluate and compare the use and extent of the liquidity practices in two time points. Furthermore, the aim was to measure if the changing of liquidity strategy is related to the profitability measured by return on assets (ROA).</p><p>Sample consisted of companies listed on Stockholm Stock Exchange’s Small and Mid cap- lists, with some restrictions. The quantitative research strategy was employed and data was collected by using telephone interviews and financial ratios from financial statements. Hypotheses tested different aspects of cash management and liquidity practices. Statistical analysis was conducted by using regression analysis of the change scores and profitability.</p><p>Overall findings suggested that the adaptation of liquidity strategies do not have a significant impact on ROA. Only increased use of liquidity forecasting and short-term financing during financial crisis had a positive impact on ROA. Moreover, it was found that the importance of the key ratios monitoring companies liquidity have not changed between the studied time points. Working capital ratio is the most commonly used liquidity measurement and in addition the use of working capital and DIO metrics has increased most during the crisis.</p><p>More frequent monitoring and forecasting on liquidity levels and making more short-term investments can provide gains in profitability Based on the findings the adjustment of liquidity practices is beneficial for the companies, even though benefits are not always directly measurable in profitability. Furthermore, companies are recommended to maintain their focus on liquidity and working capital management in an economic downturn.</p><p> </p>

Background: Liquidity and the management of liquidity are of great importance for companies. Cash management is not a new term, but the need for it has increased recently, for one thing because of the internationalisation and growing harmonisation between the countries in Europe. Netting is a cash management technique, where receivables and liabilities are netted. This technique can be used to release capital and increase the company’s cash flow by reducing the number of transactions in the internal payment system. Purpose: The purpose of this thesis is to study and describe the idea of netting, and to examine how netting can be used as a cash management tool. Method: The study is based on literature as well as personal interviews with co- workers at the case company. Result: Netting leads to a reduction in internal payments and hence a reduction of the transaction volume. Some conditions must however be fulfilled in order to make the implementation of this technique profitable. Among other things, the company’s internal transactions must be of considerable proportions.

Background: Today there are high claims on organizations to show a positive economic view. To satisfy the demands and expectations from interested parties it is very important to carefully plan the companies tied up capital and cash flows. Purpose: The purpose with the thesis is to describe what actions organizations take to resolve the conflict between showing a positive cash flow and the need to tie up capital.The purpose is also to explain the different factors that must be considered when making decisions regarding cash flow and capital tied up. Method: A qualitative study of the actions and factors wich must be considered when decisions in swedish construction companies are made regarding cash flow and capital tied up. Results: A model of the factors and actions that affect cash flow and capital tied up in projects. This is based on a a priori-model, wich can be used to describe and explain relations in the construction industry.

The ongoing financial crisis which has upset the financial markets of the world since the late summer of 2007 has not left Swedish corporations unaffected. Strategies which can be adapted within the firm to improve liquidity and cash flows concern the management of working capital and cash management, areas which are usually neglected in times of favourable business conditions. In this study it is examined how companies have adjusted their liquidity strategies before the crisis started to spread worldwide and a year afterwards, in the beginning of the 2009 when economies are in the middle of the turbulence, still feeling the consequences of the financial crisis and not yet started to recover. Research problem consisted of two main questions: Do active liquidity strategies have a positive effect on company’s profitability in times of financial turbulence/ economic turbulence?   Have the importance of key ratios in the measurement of liquidity changed during the time period? The primary purpose of the study was to evaluate and compare the use and extent of the liquidity practices in two time points. Furthermore, the aim was to measure if the changing of liquidity strategy is related to the profitability measured by return on assets (ROA). Sample consisted of companies listed on Stockholm Stock Exchange’s Small and Mid cap- lists, with some restrictions. The quantitative research strategy was employed and data was collected by using telephone interviews and financial ratios from financial statements. Hypotheses tested different aspects of cash management and liquidity practices. Statistical analysis was conducted by using regression analysis of the change scores and profitability. Overall findings suggested that the adaptation of liquidity strategies do not have a significant impact on ROA. Only increased use of liquidity forecasting and short-term financing during financial crisis had a positive impact on ROA. Moreover, it was found that the importance of the key ratios monitoring companies liquidity have not changed between the studied time points. Working capital ratio is the most commonly used liquidity measurement and in addition the use of working capital and DIO metrics has increased most during the crisis. More frequent monitoring and forecasting on liquidity levels and making more short-term investments can provide gains in profitability Based on the findings the adjustment of liquidity practices is beneficial for the companies, even though benefits are not always directly measurable in profitability. Furthermore, companies are recommended to maintain their focus on liquidity and working capital management in an economic downturn.