Stochastic Cash Flow Management Models: A Literature Review Since the 1980s

Moraes, Marcelo Botelho da Costa; Nagano, Marcelo Seido; Sobreiro, Vinícius Amorim

doi:10.1007/978-3-319-11949-6_2

Cited by 32 publications

(29 citation statements)

References 22 publications

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“…For a comprehensive review on cash management literature since the first research works, we refer the interested reader to Gregory (1976), Srinivasan and Kim (1986) and da Costa Moraes et al (2015). The set of rules used by cash managers to control balances through a sequence of control actions is called a cash management model.…”

Section: The Conceptmentioning

confidence: 99%

Aprendizaje orientado a la programación en economía, negocios y finanzas

Salas‐Molina

Pla‐Santamaria

2018

Model. Sci. Educ. Learn.

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As the relationship between both students (teachers) and information technology evolves, new tools are required to improve learning (teaching) in social sciences. Economics, business and finance are mainly based on data and dealing with data requires specific skills and techniques such as computer programming in order to get full potential of most quantitative models. In this paper, we propose a coding oriented learning method based on Python Notebooks which is specifically designed for students of degrees in economics, business and finance. We follow a learning-by-doing strategy that encourages students to implement economic models as a suitable way to improve the understanding of fundamental concepts. As an illustrative example, we also describe a case study in which Python Notebooks are the key tool to teach cash management in a Master in Business Administration program. Since students of today are the decision-makers of tomorrow, a further advantage of the use of a programming language as a teaching tool is the possibility to connect theory to practice by enabling students to implement their own decision support tools. La evolución entre la relación entre los estudiantes (profesores) y la tecnología de la información, requiere nuevas herramientas para mejorar el aprendizaje (enseñanza) en las ciencias sociales. La economía, los negocios y las finanzas se basan principalmente en los datos y el tratamiento de los datos requiere habilidades y técnicas específicas, como la programación informática, para aprovechar al máximo el potencial de la mayoría de los modelos cuantitativos. En este documento, proponemos un método de aprendizaje orientado a la programación basado en Python Notebooks, que está diseñado específicamente para estudiantes de títulos en economía, negocios y finanzas. Nuestra estrategia de aprendizaje es eminentemente práctica motivando a los estudiantes a implementar modelos económicos como una forma adecuada de mejorar la comprensión de los conceptos fundamentales. Como ejemplo ilustrativo, también describimos un estudio de caso en el que Python Notebooks es la herramienta clave para enseñar gestión de efectivo en un programa de Máster en Administración de Empresas. Dado que los estudiantes de hoy son los que toman las decisiones del mañana, una ventaja adicional del uso de un lenguaje de programación como herramienta de enseñanza es la posibilidad de conectar la teoría con la práctica al permitir a los estudiantes implementar sus propias herramientas de apoyo a la decisión.

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Section: The Conceptmentioning

confidence: 99%

Aprendizaje orientado a la programación en economía, negocios y finanzas

Salas‐Molina

Pla‐Santamaria

2018

Model. Sci. Educ. Learn.

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“…Since Baumol () and Miller and Orr (), the common two‐asset setting prevailed in many research works as surveyed in Gregory (), Srinivasan and Kim (), and da Costa Moraes et al. (). This framework assumes the existence of a main bank account for operational purposes, and a second account summarizing short‐term assets, such as treasury bills or marketable securities, ready to be converted in cash when needed.…”

Section: Introductionmentioning

confidence: 99%

Selecting the best risk measure in multiobjective cash management

Salas‐Molina

2018

Int Trans Operational Res

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In this paper, we consider cash management from a multidimensional perspective in which cost and risk are desired goals to minimize. Cash managers interested in minimizing risk need to select the most appropriate risk measure according to their particular needs. In order to assess the quality of alternative risk measures, we empirically compare eight different risk measures in terms of the combined cost–risk performance of a cash management model. To this end, we rely on goal programming to derive optimal solutions for cash management models. Our results show that risk measures based on cost deviations better capture risk in comparison to those based on a reference cash balance. The methodology proposed in this paper allows cash managers to propose and evaluate new risk measures.

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“…Cash flow shortages and volatility may propel budgets into disarray, deter capital expenditures, disrupt production, or delay debt repayments . Cash flow variation influences the firm's financial behaviour and financial commitments (da Costa Moraes, Nagano, & Sobreiro, 2015). Low cash flows imply financial constraints and thus impacting on t+he investment behaviour of such firms.…”

Section: Introductionmentioning

confidence: 99%

Cash Flow Volatility and Firm Investment Behaviour: Evidence from African Listed Firms

Vengesai¹,

Kwenda²

2018

JEBS

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This study explored the association between cash flow variability and investment behaviour of African listed firms. The research employed a dynamic panel data model estimated with the difference and system Generalised Method of Moments estimation techniques on a panel of 815 listed African non-financial firms. The estimation techniques control for unobserved heterogeneity, endogeneity, autocorrelation, heteroscedasticity and dynamic panel bias. Two different measures of volatility were employed; the exponentially weighted moving average, a forward-looking measure that captures innovations in cash flow volatilities and the coefficient of variation that captures the mechanical effect of the possible relation between cash flow levels and volatility. The results obtained suggested that cash-flow volatility is associated with average lower investment in African firms. These findings show that not only cash flows are an important determinant of investment decisions, but the variability of the cash flows also has a significant bearing on the investment levels of African firms. Cash flow volatility has a significant negative impact on investment even for firms with higher cash flows and unconstrained firms. African firms should not only aim at achieving higher cash flows, but the stability of the cash flows is equally important to sustain solid investment levels.

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Stochastic Cash Flow Management Models: A Literature Review Since the 1980s

Cited by 32 publications

References 22 publications

Aprendizaje orientado a la programación en economía, negocios y finanzas

Aprendizaje orientado a la programación en economía, negocios y finanzas

Selecting the best risk measure in multiobjective cash management

Cash Flow Volatility and Firm Investment Behaviour: Evidence from African Listed Firms

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