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The Management of Working Capital in an International Company

  • Douglas Wood
  • James Byrne

Abstract

The underlying objective of a cash management programme is to ensure that the pattern of cash balance employed by a given company is justifiable in terms of overall profitability. In effect, this simply means that if cash-using activities are charged for the use of that cash at a rate which approximates to the current cost of capital to the company (including exchange cover) and activities which are (or could be) cash-generating are credited at a similar rate for their provision of cash, no greater profitability could be secured by rearranging cash balances.

Keywords

Cash Flow Balance Sheet Transfer Price Working Capital Cash Balance 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. D. A. Ricks, International Dimensions of Corporate Finance (Englewood Cliffs, NJ, and London: Prentice-Hall, 1978).Google Scholar
  2. Sidney M. Robbins and Robert B. Stobaugh, Money in the Multinational Enterprise (London: Longmans, 1974).Google Scholar
  3. Setting Intercorporate Pricing Policies, Business International Corporation (1973).Google Scholar
  4. K. J. Wasserman, Andreas R. Prindl and Charles C. Townsend, jr, International Money Management (New York: American Management Association, 1972).Google Scholar
  5. J. Weston and B. Sorge, International Managerial Finance (Homewood, Ill: Irwin, 1972).Google Scholar
  6. J. Zwick and D. B. Zenoff, International Financial Management (Englewood Cliffs, NJ: Prentice-Hall, 1969).Google Scholar

Copyright information

© Douglas Wood and James Byrne 1981

Authors and Affiliations

  • Douglas Wood
    • 1
  • James Byrne
    • 1
  1. 1.International Centre for Banking and FinanceManchester Business SchoolUK

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