ANDSHORERMFINANCING跨國公司財務(wù)管理Joseh

MultinationalFinancialManagement

AlanShapiro

7thEdition

J.Wiley&Sons

PowerPointsbyJosephF.Greco,Ph.D.CaliforniaStateUniversity,Fullerton1CHAPTER19CURRENTASSETMANAGEMENTANDSHORT-TERMFINANCING2CHAPTEROVERVIEW

I. INTERNATIONALCASH MANAGEMENT II. ACCOUNTSRECEIVABLE MANAGEMENT III. INVENTORYMANAGEMENT IV. SHORT-TERMFINANCING3I. INTERNATIONALCASH MANAGEMENTI. INTERNATIONCASHMANAGEMENT A. SevenKeyAreas: 1. Organization 2. Collection/FundDisbursement 3. InteraffiliatePaymentsNetting 4. Excess-FundsInvestment 5. OptimalGlobalCashBalances 6. CashPlanning/Budgeting 7. BankRelations4INTERNATIONALCASH MANAGEMENTB. GoalsofanInternationalCashManager 1. Quick/efficientcashcontrol 2. Optimalconservation/usageC. Organization: Centralize 1. Advantages: a. Efficientliquiditylevels b. Enhancedprofitability c. Quickerheadquarteraction5INTERNATIONALCASH MANAGEMENT 1. Advantages(con’) d. Decisionmakingenhanced e. Bettervolumecurrency quotes f. Greatercashmanagement expertise g. Lesspoliticalrisk 6INTERNATIONALCASH MANAGEMENTD. Collection/DisbursementofFunds 1. KeyElement: Acceleratecollections 2. AccelerationMethods: a. Cableremittances b. Mobilizationcenters c. Lockboxes d. Electronicfundtransfers

7INTERNATIONALCASH MANAGEMENT 3. MethodstoExpediteCashPayments a. Cableremittances b. Establishaccountsinclient’sbank c. Negotiatewithbanks -obtainvaluedating8INTERNATIONALCASH MANAGEMENTE. PaymentsNetting 1. Definition: offsetpaymentsofaffiliate receivables/payablessothatnet amounts onlyaretransferred. 2. CreateNettingCenter a. asubsidiarysetupinalocation withminimalexchangecontrols9INTERNATIONALCASH MANAGEMENT 2. NettingCenters(con’t) b. Coordinateinteraffiliatepayment flows c. Center’svalueisadirectfunction oftransfervolume.10INTERNATIONALCASHMANAGEMENTF. ExcessFundsInvestment1. Majortask:a.determineminimumcashbalancesb. short-terminvestmentofexcessbalances2. Requirements:a. Forecastofcashneedsb. Knowledgeofminimumcashposition11INTERNATIONALCASHMANAGEMENT3. InvestmentSelectionCriteria:a. Governmentregulationsb. Marketstructurec. ForeigntaxlawsG. OptimalGlobalCashBalances1. Establishcentrallymanagedcashpool2. Requireaffiliatestoholdminimum12INTERNATIONALCASHMANAGEMENT3. BenefitsofOptimalCashBalancesa. Lessborrowingneededb. Moreexcessfundinvestmentc. Reducedinternalexpensed. Reducedcurrencyexposure13INTERNATIONALCASHMANAGEMENTH. BankRelations1. GoodRelationsWillAvoida. Lostinterestincomeb. Overpricedservicesc. Redundantservices14INTERNATIONALCASHMANAGEMENT2. CommonBankRelationsProblemsa. Toomanybanksb. Highcostssuchascompensatingbalancesc. Inadequatereportingd. Excessiveclearingdelays15II.ACCOUNTSRECEIVABLEMANAGEMENTII.ACCOUNTSRECEIVABLEMANAGEMENTA. TradeCreditextendedinanticipationofprofitby1. expandedsalesvolume2. retainingexistingcustomers16ACCOUNTSRECEIVABLEMANAGEMENTB. CreditTermsShouldConsider1. Salesforce2. Adjustingbonusesforcostofcreditsales.17III.INVENTORYMANAGEMENTA. Problems:Seemtobemoredifficultdueto1. Long,variabletransits2. Lengthycustomsprocedures18INVENTORYMANAGEMENTB. ProductionLocation/InventoryControl1. Overseaslocationmayleadtohigherinventorycarryingcostsduetoa. largeramountsofwork-in-processb. morefinishedgoods19INVENTORYMANAGEMENTC. AdvanceInventoryPurchases1. Usuallywheretherearenoforwardhedgesavailable2. Anotherhedgingmethod:advanceinventorypurchasesofimporteditems,i.e.inventorystockpiling.20INVENTORYMANAGEMENTd. ReasonforStockpiling:greaterriskofdelaye.Solutiontohighercarryingcosts:Adjustaffiliate’’sprofitmarginstoreflectaddedcosts.21IV.SHORT-TERMFINANCINGIV.SHORT-TERMFINANCINGA.Strategy1.Identify:keyfactors2.Formulate/evaluate:objectives3.Describe:availableoptions4.Developamethodology:tocalculate/comparecosts22SHORT-TERMFINANCINGB.KeyFactors1.DeviationsfromInt’’lFisherEffect?a.Ifyestrade-offrequiredbetweencostandexchangeriskb.Ifnocostsaresameeverywhere23SHORT-TERMFINANCING2.ExchangeRiska.Offsetforeignassetswithforeignliabilitiesb.Borrowwherenoexposureincreasesexchangerisk3.Firm’’sRiskAversiondirectrelationtopriceincurredtoreduceexposure24SHORT-TERMFINANCING4.DoesInterestRateParityHold?a.Yes.Currencyisirrelevant.-addedriskmaymeantheforwardpremium/discountdoesnotoffsetinterestratedifferentials.25SHORT-TERMFINANCING5.PoliticalRisk:Ifhigh,a.MNCsshould1.)maximizelocalfinancing.2.)Facedwithconfiscationorcurrencycontrols,fewerassetsatrisk.26SHORT-TERMFINANCINGC.Short-TermFinancingObjectives1.FourPossibleObjectives:a.Minimizeexpectedcost.b.Minimizeriskwithoutregardtocost.c.Tradeoffexpectedcostandsystematicrisk.d.Tradeoffexpectcostandtotalrisk.27SHORT-TERMFINANCINGD.Short-TermFinancingOptions1.ThreePossibilitiesa.Inter-companyloansb.Localcurrencyloansc.Euromarket28SHORT-TERMFINANCING2.LocalCurrencyFinancing:BankLoansa. Short-terminnatureroleofcleanupclauseb. Forms1.) Termloans2.) Lineofcredit3.) Overdrafts4.) RevolvingCredit5.) Discounting29SHORT-TERMFINANCING3. CalculatingInterestCostsa. Effectiveinterestrate(EIR):mostefficientmeasureofcostb. Basicformula:EIR