Multinational Corporate Treasury Management

  • Derek F. Channon
  • Michael Jalland


The task of financial management in the multinational corporation is of particular importance. Today it has become a key determinant for the corporate profitability of the MNC to have its financial resources in the right form in the right place at the right time. The task of ensuring that this is achieved is that of corporate treasury management. It is a relatively thankless task for if it is not done then management is accused of ireffectiveness, and bad planning. On the other hand success leads to accusations of being a corporate speculator. Nevertheless, since the introduction of floating exchange rates, short-term money management has become so important that in a number of cases earnings from good treasury management have accounted for up to 50 per cent of corporate profits.1


Cash Flow Foreign Exchange Capital Structure Central Office Operating Division 
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  1. 1.
    Observation by J. C. S. Kimber from his research notes. Within the context of this chapter we will not always clearly differentiate between the controllership function and the treasury function. J. C. S. Kimber, ‘Financial Planning in Multinational Corporations: The Impact of Strategy on Structure’, unpublished MBA dissertation, Manchester Business School, 1976.Google Scholar
  2. 2.
    S. M. Robbins and R. B. Stobaugh, Money in the Multinational Enterprise (Basic Books 1973), chapter 3, identified three phases. The details set out below are developed from Robbins and Stobaugh but significantly adapted especially for the advanced phase as a result of further research conducted at the Manchester Business School under the direction of the present authors.Google Scholar
  3. 3.
    Ibid., chapter 3.Google Scholar
  4. 4.
  5. 5.
    The Conference Board, Managing the International Finance Function Studies in Business Policy, No 133, 1970.Google Scholar
  6. 6.
    Conference Board, ibid., pp. 65–6.Google Scholar
  7. 7.
    A. Morris, ‘How BP Manages its Money’, Euromoney, June 1973, p. 34.Google Scholar
  8. 8.
    Karl-Ludwig Hermann, ‘How BASF Runs Its Treasury’, Euromoney, May 1974, pp. 88–91.Google Scholar
  9. 9.
    E. G. Collado, ‘How Exxon Handles Its Finances’, Euromoney, Oct 1973, pp. 108–13.Google Scholar
  10. 10.
    T. Green, ‘Capital Investment Decisions in the MNC’, unpublished MBA dissertation, Manchester Business School, 1977, p. 75.Google Scholar
  11. 11.
    Ibid., p. 84.Google Scholar
  12. 12.
    Ibid., p. 91.Google Scholar
  13. 13.
    A. Stonehill and T. Stitzel, ‘Financial Structure and Multinational Corporations’, California Management Review, fall 1969, pp. 92–5.Google Scholar
  14. 14.
    J. Kimber, op. cit., p. 101.Google Scholar
  15. 15.
    J. T. Wooster and G. R. Thoman, ‘New Financial Priorities for MNCs’ Harvard Business Review, May-June 1974.Google Scholar

Copyright information

© Derek F. Channon with Michael Jalland, Manchester Business School 1978

Authors and Affiliations

  • Derek F. Channon
    • 1
  • Michael Jalland
    • 1
  1. 1.Manchester Business SchoolUK

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