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International Cash Management–The Determination of Multicurrency Cash Balances

Published online by Cambridge University Press:  19 October 2009

Alan C. Shapiro
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Extract

The rising cost of funds internationally is forcing multinational corporations to pay more attention to effective cash management on a global basis. However, the available literature is preoccupied with cash management in only one currency. This is a serious oversight given the heavy involvement of U.S. firms overseas. In 1970, for example, the ratio of foreign source earnings plus income from abroad (royalties, fees, service charges) to total U.S. corporate after-tax profits was over 25 percent [14]. If export and import activities were included, this statistic would be more impressive yet.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 11 , Issue 5 , December 1976 , pp. 893 - 900
Copyright
Copyright © School of Business Administration, University of Washington 1976

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References

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