ANDSHORT-TERMFINANCING(跨国公司财务管理-Joseph.ppt

MultinationalFinancialManagementAlanShapiro7thEditionJ.Wiley&Sons,PowerPointsbyJosephF.Greco,Ph.D.CaliforniaStateUniversity,Fullerton,CHAPTER19,CURRENTASSETMANAGEMENTANDSHORT-TERMFINANCING,CHAPTEROVERVIEW,I.INTERNATIONALCASHMANAGEMENTII.ACCOUNTSRECEIVABLEMANAGEMENTIII.INVENTORYMANAGEMENTIV.SHORT-TERMFINANCING,I.INTERNATIONALCASHMANAGEMENT,I.INTERNATIONCASHMANAGEMENTA.SevenKeyAreas:1.Organization2.Collection/FundDisbursement3.InteraffiliatePaymentsNetting4.Excess-FundsInvestment5.OptimalGlobalCashBalances6.CashPlanning/Budgeting7.BankRelations,INTERNATIONALCASHMANAGEMENT,B.GoalsofanInternationalCashManager1.Quick/efficientcashcontrol2.Optimalconservation/usageC.Organization:Centralize1.Advantages:a.Efficientliquiditylevelsb.Enhancedprofitabilityc.Quickerheadquarteraction,INTERNATIONALCASHMANAGEMENT,1.Advantages(con)d.Decisionmakingenhancede.Bettervolumecurrencyquotesf.Greatercashmanagementexpertiseg.Lesspoliticalrisk,INTERNATIONALCASHMANAGEMENT,D.Collection/DisbursementofFunds1.KeyElement:Acceleratecollections2.AccelerationMethods:a.Cableremittancesb.Mobilizationcentersc.Lockboxesd.Electronicfundtransfers,INTERNATIONALCASHMANAGEMENT,3.MethodstoExpediteCashPaymentsa.Cableremittancesb.Establishaccountsinclientsbankc.Negotiatewithbanks-obtainvaluedating,INTERNATIONALCASHMANAGEMENT,E.PaymentsNetting1.Definition:offsetpaymentsofaffiliatereceivables/payablessothatnetamountsonlyaretransferred.2.CreateNettingCentera.asubsidiarysetupinalocationwithminimalexchangecontrols,INTERNATIONALCASHMANAGEMENT,2.NettingCenters(cont)b.Coordinateinteraffiliatepaymentflowsc.Centersvalueisadirectfunctionoftransfervolume.,INTERNATIONALCASHMANAGEMENT,F.ExcessFundsInvestment1.Majortask:a.determineminimumcashbalancesb.short-terminvestmentofexcessbalances2.Requirements:a.Forecastofcashneedsb.Knowledgeofminimumcashposition,INTERNATIONALCASHMANAGEMENT,3.InvestmentSelectionCriteria:a.Governmentregulationsb.Marketstructurec.ForeigntaxlawsG.OptimalGlobalCashBalances1.Establishcentrallymanagedcashpool2.Requireaffiliatestoholdminimum,INTERNATIONALCASHMANAGEMENT,3.BenefitsofOptimalCashBalancesa.Lessborrowingneededb.Moreexcessfundinvestmentc.Reducedinternalexpensed.Reducedcurrencyexposure,INTERNATIONALCASHMANAGEMENT,H.BankRelations1.GoodRelationsWillAvoida.Lostinterestincomeb.Overpricedservicesc.Redundantservices,INTERNATIONALCASHMANAGEMENT,2.CommonBankRelationsProblemsa.Toomanybanksb.Highcostssuchascompensatingbalancesc.Inadequatereportingd.Excessiveclearingdelays,II.ACCOUNTSRECEIVABLEMANAGEMENT,II.ACCOUNTSRECEIVABLEMANAGEMENTA.TradeCreditextendedinanticipationofprofitby1.expandedsalesvolume2.retainingexistingcustomers,ACCOUNTSRECEIVABLEMANAGEMENT,B.CreditTermsShouldConsider1.Salesforce2.Adjustingbonusesforcostofcreditsales.,III.INVENTORYMANAGEMENT,A.Problems:Seemtobemoredifficultdueto1.Long,variabletransits2.Lengthycustomsprocedures,INVENTORYMANAGEMENT,B.ProductionLocation/InventoryControl1.Overseaslocationmayleadtohigherinventorycarryingcostsduetoa.largeramountsofwork-in-processb.morefinishedgoods,INVENTORYMANAGEMENT,C.AdvanceInventoryPurchases1.Usuallywheretherearenoforwardhedgesavailable2.Anotherhedgingmethod:advanceinventorypurchasesofimporteditems,i.e.inventorystockpiling.,INVENTORYMANAGEMENT,d.ReasonforStockpiling:greaterriskofdelaye.Solutiontohighercarryingcosts:Adjustaffiliatesprofitmarginstoreflectaddedcosts.,IV.SHORT-TERMFINANCING,IV.SHORT-TERMFINANCINGA.Strategy1.Identify:keyfactors2.Formulate/evaluate:objectives3.Describe:availableoptions4.Developamethodology:tocalculate/comparecosts,SHORT-TERMFINANCING,B.KeyFactors1.DeviationsfromIntlFisherEffect?a.Ifyestrade-offrequiredbetweencostandexchangeriskb.Ifnocostsaresameeverywhere,SHORT-TERMFINANCING,2.ExchangeRiska.Offsetforeignassetswithforeignliabilitiesb.Borrowwherenoexposureincreasesexchangerisk3.FirmsRiskAversiondirectrelationtopriceincurredtoreduceexposure,SHORT-TERMFINANCING,4.DoesInterestRateParityHold?a.Yes.Currencyisirrelevant.b.No.Covercostsmaydiffer-addedriskmaymeantheforwardpremium/discountdoesnotoffsetinterestratedifferentials.,SHORT-TERMFINANCING,5.PoliticalRisk:Ifhigh,a.MNCsshould1.)maximizelocalfinancing.2.)Facedwithconfiscationorcurrencycontrols,fewerassetsatrisk.,SHORT-TERMFINANCING,C.Short-TermFinancingObjectives1.FourPossibleObjectives:a.Minimizeexpectedcost.b.Minimizeriskwithoutregardtocost.c.Tradeoffexpectedcostandsystematicrisk.d.Tradeoffexpectcostandtotalrisk.,SHORT-TERMFINANCING,D.Short-TermFinancingOptions1.ThreePossibilitiesa.Inter-companyloansb.Localcurrencyloansc.Euromarket,SHORT-TERMFINANCING,2.LocalCurrencyFinancing:BankLoansa.Short-terminnatureroleofcleanupclauseb.Forms1.)Termloans2.)Lineofcredit3.)Overdrafts4.)RevolvingCredit5.)Discounting,SHORT-TERMFINANCING,3.CalculatingInterestCostsa.Effectiveinterestrate(EIR):mostefficientmeasureofcostb.Basicf