The Insufficiency of Our Cash Reserves and of our Central Stock of Gold

G. H. Pownall

doi:10.2307/2955985

Financial Management of Tires Retail and Restaurant Business in Greater Jakarta

ICONIET PROCEEDING ◽

10.33555/iconiet.v2i4.45 ◽

2019 ◽

Vol 2 (4) ◽

pp. 267-275

Author(s):

Sung Suk Kim ◽

Jacob Donald Tan ◽

Rita Juliana ◽

John Tampil Purba

Keyword(s):

Financial Management ◽

Management Practices ◽

Working Capital ◽

Structured Interviews ◽

Short Term ◽

Direct Observations ◽

Medium Enterprises ◽

Cash Reserves ◽

Retained Earnings ◽

Computerized System

This study aims to explore the financial management practices ofsmall-and-medium-enterprises (SMEs) in the Greater Jakarta (Jabodetabek). We investigate into 3 SME cases by conducting the semi-structured interviews with the owner-managers and using direct observations to know the practices of financial management of SMEs. Through the research, we have found six propositions related to the practice of short-term financial management. They apply bootstraps to ensure availability of working capital. They set aside cash reserves from retained earnings and minimize loans from financial institutions. They have the computerized system to track receivables facilitating working capital needs. They keep theirinventory control efficient to manage working capital. They screen customers using transactional records and reputations to minimize the risk of bad debts.

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Revisiting the concept of a competitive “cash advantage”

Strategy and Leadership ◽

10.1108/sl-03-2015-0024 ◽

2015 ◽

Vol 43 (4) ◽

pp. 38-46 ◽

Cited By ~ 1

Author(s):

Joseph Calandro, Jr.

Keyword(s):

Competitive Advantage ◽

Corporate Strategy ◽

Academic Research ◽

Cash Holdings ◽

Content Type ◽

Cash Reserves ◽

Changing Role ◽

Viable Method ◽

Practical Implications

Purpose – The purpose of this paper is to profile how ample cash holdings can serve as a competitive advantage by first mitigating the risk of becoming a forced seller during times of distress, and then positioning a firm to take strategic advantage of forced selling and other forms of distress-generated opportunities. Design/methodology/approach – The author reviews the changing role of cash over time in corporate strategy, and how inadequate cash has caused or contributed to corporate failures. Findings – The findings of this paper, which are supported by historical and contemporary examples, are that ample cash reserves can be a powerful source of comparative advantage. Practical implications – This article supports earlier work published in Strategy & Leadership that shows how Graham-and-Dodd-based analysis is a viable avenue of academic research and a viable method with which to assess and formulate corporate strategic initiatives such as mergers and acquisitions, share buy-backs, risk management and, in this case, the strategic uses of cash. Originality/value – This paper offers leaders and financial executives a practical explanation of how ample cash holdings can serve as a competitive advantage.

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The British Banking System's Demand for Cash Reserves

International Finance Discussion Paper ◽

10.17016/ifdp.1981.176 ◽

1981 ◽

Vol 1981 (176) ◽

pp. 1-40 ◽

Cited By ~ 1

Author(s):

David H. Howard ◽

Keyword(s):

Cash Reserves

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Family Control And The Value Of Cash Holdings

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v31i2.9159 ◽

2015 ◽

Vol 31 (2) ◽

pp. 647 ◽

Cited By ~ 1

Author(s):

Sabri Boubaker ◽

Imen Derouiche ◽

Majdi Hassen

Keyword(s):

Firm Value ◽

Family Firms ◽

Cash Holdings ◽

Firm Resources ◽

Family Control ◽

Large Sample ◽

Listed Firms ◽

Excess Cash ◽

Cash Reserves ◽

Corporate Cash Holdings

The present study investigates the effects of family control on the value of corporate cash holdings. Using a large sample of French listed firms, the results show that the value of excess cash reserves is lower in family firms than in other firms, reflecting investors concern about the potential misuse of cash by controlling families. We also find that the value of excess cash is lower when controlling families are involved in management and when they maintain a grip on control, indicating that investors do not expect the efficient use of cash in these firms. Our findings are consistent with the argument that the extent to which excess cash contributes to firm value is lower when dominant shareholders are likely to expropriate firm resources. Overall, family control seems to be a key determinant of cash valuation when ownership is concentrated.

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Do Cash Holdings Differ in Europe and Asia Pacific?

Lahore Journal of Business ◽

10.35536/ljb.2019.v7.i2.a1 ◽

2019 ◽

Vol 7 (2) ◽

pp. 1-32

Author(s):

Ummar Aftab ◽

Waseem Akhter Qureshi ◽

Attiya Yasmin Javid

Keyword(s):

Financial Markets ◽

Cash Holdings ◽

Cash Flows ◽

Negative Influence ◽

Asia Pacific ◽

Cash Holding ◽

Financial Assets ◽

Dividend Payment ◽

Financial Strength ◽

Cash Reserves

This paper identifies the determinants that contribute towards the variation in financial assets that make up a firm’s total cash reserves, specifically in two important regions of the world i.e. Asia Pacific and Europe. The findings of the research reveal that firms in the region of Asia Pacific have slightly higher cash holdings, as compared to firms in Europe. Moreover, the study also identifies that the elevated cash holdings in Asia Pacific are not a result of the agency problem, as is generally viewed, rather, the shareholder power hypothesis is a more appropriate measure to elucidate this elevation in the level of cash holdings in the region. When shedding light on to the firm specific cash holding determinants, the findings of the research reveal that leverage, dividend payment, profitability, growth and net working capital, cash flows and financial strength, influence cash reserves in both the regions, exactly in the same manner. This shows the application of transaction, and precautionary motives in both the regions. The study further identifies that size, and investments have a varying effect in both the regions that are taken into consideration. Again, this difference may be attributed to Shareholders’ Power Hypothesis, specifically for Asia Pacific and the Agency View, specifically for Europe. Shareholders’ Right Index influences cash reserves in Asia Pacific in a positive manner, while in Europe, the same index shows a negative influence. The development in the financial markets has a negative negatively influence on cash holdings in Asia Pacific, and a positive one in Europe.

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Kheyti: Product and Business Development at an AgTech Social Enterprise

Kellogg School of Management Cases ◽

10.1108/case.kellogg.2021.000033 ◽

2017 ◽

pp. 1-24

Author(s):

Mohanbir Sawhney ◽

Saumya

Keyword(s):

Social Enterprise ◽

Smallholder Farmers ◽

Low Cost ◽

Pilot Project ◽

Agricultural Technology ◽

Non Profit ◽

Early Adopters ◽

The Cost ◽

Income Variability ◽

Cash Reserves

In early 2017, after launching its successful “Greenhouse-in-a-Box” pilot project in India with fifteen smallholder farmers, Kheyti, a non-profit agricultural technology (AgTech) social enterprise, was struggling with several decisions in developing and growing its business. Kheyti was launched in 2015 to help smallholder farmers battle poverty and income variability by providing affordable technologies bundled with services. Over eighteen months, the team had developed a low-cost and modular greenhouse product to which it added financing, inputs, training, and market linkages to create a comprehensive “full-stack” solution for small farmers. The pilot project was a success in many ways, but Saumya, Kheyti's co-founder and head of product, was concerned that it revealed shortcomings that could severely affect the viability and scalability of Kheyti's solution. Saumya had some important decisions to make. Should Kheyti redesign the product from scratch, or find other ways to reduce the cost for early adopters? Should it rely on upfront revenues from sales of the greenhouse, or consider developing an innovative financing or contract farming model? Kheyti's dwindling cash reserves meant that these decisions were urgent and critical. The path chosen now would determine whether the startup would move beyond the pilot stage and achieve its vision of serving 1 million farmers by 2025.

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Protests, a Destabilizing Factor of Economic Growth in Arab Republic of Egypt

Socio-Economic Analyses ◽

10.54664/myho8686 ◽

2019 ◽

Vol 11 (2) ◽

Author(s):

Karim Naama ◽

◽

Keyword(s):

Economic Growth ◽

United Arab Emirates ◽

Economic Situation ◽

Economic Research ◽

Economic Growth Rate ◽

Published Report ◽

The Government ◽

The Muslim Brotherhood ◽

Cash Reserves ◽

The Military

With the start of the revolution of January 2011 until 2013, many indicators and economic research confirms the entry of the Egyptian economy to a stage of deterioration. With the military council headed by Marshal Tantawi taking over the country, the growth of the economy fell remarkably to less than 2% Unemployment reached over 10%, and the fiscal deficit increased to 8.6% of GDP, which was accompanied by inflation of 11%. That one of the biggest economic mistakes committed by the government system is to keep the exchange rate of the pound fixed, which led to the depletion of about $ 20 billion of cash reserves between December 2010 to May 2012, which has negatively affected the rating of Egyptian Institutions International Finance. After that, Egypt’s economic situation during the rule of Mohammed Morsi and the Muslim Brotherhood, which can be described as lacking in experience in the management of the state. The political challenges and obstacles, as well as the absence of any economic plan, contributed to the increasing complexity of the economic situation of Egypt, Resulting in a rise in the unemployment rate to 12.5%. The Brotherhood’s government failed to provide resources to cope with the crisis, relying only on the collection of aid and subsidies from some regimes in the Middle East, resulting in worsening conditions until the army intervened and President Mohamed Morsi was removed on 3 July 2013. With the arrival of interim President Adli Mansour to power in August 2013, we note that the Egyptian economy witnessed a slight improvement, which was reflected according to the published report that Egypt received about 12 billion dollars in foreign aid from Kuwait, Saudi Arabia and the United Arab Emirates, However, the economic growth rate remained below 2% as unemployment and inflation continued to spread.

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Navigating Through the Financial Crisis that may Occur during and after the COVID-19 Pandemic for Gastroenterologists

Journal of Digestive Endoscopy ◽

10.1055/s-0040-1712345 ◽

2020 ◽

Vol 11 (01) ◽

pp. 76-80

Author(s):

Dipam A. Patel ◽

Chirag Narendrakumar Shah

Keyword(s):

Economic Crisis ◽

Coming Out ◽

Gastrointestinal Endoscopy ◽

Existential Crisis ◽

Number Of Patients ◽

New Ideas ◽

Remedial Actions ◽

Response Plan ◽

Cash Reserves ◽

The Impact

Abstract Introduction Considering the specific set of gastrointestinal endoscopy practitioners, it is witnessed that the number of patients forelective procedures are being deferred by the patients amid various concerns ranging from financial constraint to the fear of infection from the dreaded coronavirus. With Routine endoscopy procedures recommended to be safely postponed, the impact on the practice of Gastrointestinal Endoscopists shall be magnified. Assessment and Strategy The article discusses impact and remedial actions that may be taken by Gastrointestinal Endoscopists, which classified into:- Anindependent practitioner- A consultant- An employeeThe article further touches upon the difficulties that might be envisaged by the Gastrointestinal Endoscopists, and obtain a financial understanding of what could potentially lead to an existential crisis?Those with cash reserves sit in a pleasant position i.e. they can buy assets at an attractive price, experiment with new ideas, research and development, etc. It is imperative in these times to understand the uncertainty cast on operations of Gastrointestinal Endoscopists and prepare a response plan for coming out of this economic crisis. A roadmap also has been devised which provides a possible outline of a plan that can be implemented for handling the economic crisis.It is also important to answer these two questions:1. Who do I want to be during the crisis?2. Who do I want to be when this is over?

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Ten Lessons that Internet Auction Markets Can Learn from Securities Market Automation

Ethical Issues of Information Systems ◽

10.4018/978-1-931777-15-5.ch006 ◽

2011 ◽

pp. 57-87

Author(s):

J. Christopher Westland

Keyword(s):

Stock Exchange ◽

Emerging Market ◽

Securities Market ◽

Internet Auction ◽

Auction Markets ◽

Auction Market ◽

Central Stock ◽

Product Models ◽

Communications Technologies ◽

Financial Securities

Internet auction markets offer customers a compelling new model for price discovery. This model places much more power in the hands of the consumer than a retail model that assumes price taking, while giving consumers choice of vendor and product. Models of auction market automation has been evolving for some time. Securities markets in most countries over the past decade have invested significantly in automating various components with database and communications technologies. This paper explores the automation of three emerging market exchanges ( The Commercial Exchange of Santiago, The Moscow Central Stock Exchange, and Shanghai’s Stock Exchange ( with the intention of drawing parallels between new Internet models of retailing and the older proprietary networked markets for financial securities.

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