Financial working capital - management and measurement
Talonpoika, Anna-Maria (2016-05-06)
Väitöskirja
Talonpoika, Anna-Maria
06.05.2016
Lappeenranta University of Technology
Acta Universitatis Lappeenrantaensis
Julkaisun pysyvä osoite on
https://urn.fi/URN:ISBN:978-952-265-947-7
https://urn.fi/URN:ISBN:978-952-265-947-7
Tiivistelmä
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.
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.
Kokoelmat
- Väitöskirjat [1037]