Financial working capital - management and measurement

Unexpected changes in cash flow have started to occur more frequently after the financial crisis. The capital structures of companies have also changed, and financial flexibility as well as flexible asset management have therefore become more important. This thesis aims at presenting financial working capital management, a part of flexible asset management, as a possibility to gain financial flexibility and survive the changes. This thesis operates in the interface of corporate finance, strategic management and management accounting, and it has two main objectives: to examine financial working capital management and to develop measures of financial working capital. The research in this thesis has been conducted using archival research and design science. Qualitative comparative analysis and model building are used to formulate tools and strategies for financial working capital management. The tools are tested with simulations, case studies and statistical analysis. The empirical data is collected from companies listed in the Helsinki Stock Exchange. The results of this thesis indicate that there are several possible financial working capital management strategies. FOCAL matrix is created in the thesis to assist in the selection of a strategy. The results also imply that profitability can be improved by reducing financial working capital, which creates a need to change the financial working capital management strategy. Financial flow cycle, and its modification, is developed in this thesis to measure financial working capital. Financial working capital as a concept is presented in this thesis with an orientation towards the management view. New dimensions have also been produced to financial management and working capital management, while providing a holistic approach to financial flexibility. Financial working capital management strategies are presented to managers and practical tools are provided for decision-making.

Pricing of Liquidity Risks in London Stock Exchange

This thesis aims to investigate pricing of liquidity risks in London Stock Exchange. Liquidity Adjusted Capital Asset Pricing Model i.e. LCAPM developed by Acharya and Pedersen (2005) is being applied to test the influence of various liquidity risks on stock returns in London Stock Exchange. The Liquidity Adjusted Capital Asset Pricing model provides a unified framework for the testing of liquidity risks. All the common stocks listed and delisted for the period of 2000 to 2014 are included in the data sample. The study has incorporated three different measures of liquidity – Percent Quoted Spread, Amihud (2002) and Turnover. The reason behind the application of three different liquidity measures is the multi-dimensional nature of liquidity. Firm fixed effects panel regression is applied for the estimation of LCAPM. However, the results are robust according to Fama-Macbeth regressions. The results of the study indicates that liquidity risks in the form of (i) level of liquidity, (ii) commonality in liquidity (iii) flight to liquidity, (iv) depressed wealth effect and market return as well as aggregate liquidity risk are priced at London Stock Exchange. However, the results are sensitive to the choice of liquidity measures.

Recueil juridique de l'assurance : organe mensuel international destiné à l'exposé et à l'étude pratique de la jurisprudence, de la législation et de toutes les questions intéressant les assurances terrestres / direction Me Annet-Badel

1936/02/15 (A2,N2).

Recueil juridique de l'assurance : organe mensuel international destiné à l'exposé et à l'étude pratique de la jurisprudence, de la législation et de toutes les questions intéressant les assurances terrestres / direction Me Annet-Badel

1936/03/15 (A2,N3).

Recueil juridique de l'assurance : organe mensuel international destiné à l'exposé et à l'étude pratique de la jurisprudence, de la législation et de toutes les questions intéressant les assurances terrestres / direction Me Annet-Badel

Périodicité : Mensuel

Recueil juridique de l'assurance : organe mensuel international destiné à l'exposé et à l'étude pratique de la jurisprudence, de la législation et de toutes les questions intéressant les assurances terrestres / direction Me Annet-Badel

1936/12/15 (A2,N12).

Recueil juridique de l'assurance : organe mensuel international destiné à l'exposé et à l'étude pratique de la jurisprudence, de la législation et de toutes les questions intéressant les assurances terrestres / direction Me Annet-Badel

1936/08/15 (A2,N8)-1936/09/15 (A2,N9).

Recueil juridique de l'assurance : organe mensuel international destiné à l'exposé et à l'étude pratique de la jurisprudence, de la législation et de toutes les questions intéressant les assurances terrestres / direction Me Annet-Badel

1936/04/15 (A2,N4)-1936/05/15 (A2,N5).