ANDSHORT-TERMFINANCING跨国公司财务管理-Joseph课件

MultinationalFinancialManagement

AlanShapiro

7thEdition

J.Wiley&Sons

PowerPointsbyJosephF.Greco,Ph.D.CaliforniaStateUniversity,Fullerton1MultinationalFinancialManageCHAPTER19CURRENTASSETMANAGEMENTANDSHORT-TERMFINANCING2CHAPTER19CURRENTASSETMANAGECHAPTEROVERVIEW

I. INTERNATIONALCASH MANAGEMENT II. ACCOUNTSRECEIVABLE MANAGEMENT III. INVENTORYMANAGEMENT IV. SHORT-TERMFINANCING3CHAPTEROVERVIEW

I. INTERNATI. INTERNATIONALCASH MANAGEMENTI. INTERNATIONCASHMANAGEMENT A. SevenKeyAreas: 1. Organization 2. Collection/FundDisbursement 3. InteraffiliatePaymentsNetting 4. Excess-FundsInvestment 5. OptimalGlobalCashBalances 6. CashPlanning/Budgeting 7. BankRelations4I. INTERNATIONALCASH MANAGINTERNATIONALCASH MANAGEMENTB. GoalsofanInternationalCashManager 1. Quick/efficientcashcontrol 2. Optimalconservation/usageC. Organization: Centralize 1. Advantages: a. Efficientliquiditylevels b. Enhancedprofitability c. Quickerheadquarteraction5INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENT 1. Advantages(con’) d. Decisionmakingenhanced e. Bettervolumecurrency quotes f. Greatercashmanagement expertise g. Lesspoliticalrisk 6INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENTD. Collection/DisbursementofFunds 1. KeyElement: Acceleratecollections 2. AccelerationMethods: a. Cableremittances b. Mobilizationcenters c. Lockboxes d. Electronicfundtransfers

7INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENT 3. MethodstoExpediteCashPayments a. Cableremittances b. Establishaccountsinclient’sbank c. Negotiatewithbanks -obtainvaluedating8INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENTE. PaymentsNetting 1. Definition: offsetpaymentsofaffiliate receivables/payablessothatnet amounts onlyaretransferred. 2. CreateNettingCenter a. asubsidiarysetupinalocation withminimalexchangecontrols9INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENT 2. NettingCenters(con’t) b. Coordinateinteraffiliatepayment flows c. Center’svalueisadirectfunction oftransfervolume.10INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENTF. ExcessFundsInvestment 1. Majortask:

a. determineminimumcash balances b. short-terminvestmentof excessbalances 2. Requirements: a. Forecastofcashneeds b. Knowledgeofminimum cashposition11INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENT 3. InvestmentSelectionCriteria: a. Governmentregulations b. Marketstructure c. ForeigntaxlawsG. OptimalGlobalCashBalances 1. Establishcentrallymanagedcash pool 2. Requireaffiliatestohold minimum12INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENT 3. BenefitsofOptimalCashBalances a. Lessborrowingneeded b. Moreexcessfundinvestment c. Reducedinternalexpense d. Reducedcurrencyexposure

13INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENT H. BankRelations 1. GoodRelationsWillAvoid a. Lostinterestincome b. Overpricedservices c. Redundantservices14INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENT 2. CommonBankRelations Problems a. Toomanybanks b. Highcosts suchascompensating balances c. Inadequatereporting d. Excessiveclearingdelays15INTERNATIONALCASH MANAGEMEII. ACCOUNTSRECEIVABLE MANAGEMENTII. ACCOUNTSRECEIVABLE MANAGEMENT A. TradeCredit extendedinanticipationofprofitby 1. expandedsalesvolume 2. retainingexistingcustomers16II. ACCOUNTSRECEIVABLE MANACCOUNTSRECEIVABLE MANAGEMENTB. CreditTermsShouldConsider 1. Salesforce 2. Adjustingbonusesforcostof creditsales.

17ACCOUNTSRECEIVABLE MANAGEMEIII. INVENTORYMANAGEMENTA. Problems: Seemtobemoredifficultdueto 1. Long,variabletransits 2. Lengthycustoms procedures

18III. INVENTORYMANAGEMENTA. PrINVENTORYMANAGEMENTB. ProductionLocation/InventoryControl 1. Overseaslocation mayleadtohigherinventory carryingcostsdueto a. largeramountsofwork-in- process b. morefinishedgoods19INVENTORYMANAGEMENTB. ProductINVENTORYMANAGEMENTC. AdvanceInventoryPurchases 1. Usuallywherethereareno forwardhedgesavailable 2. Anotherhedgingmethod: advanceinventorypurchasesof importeditems, i.e.inventorystockpiling.20INVENTORYMANAGEMENTC. AdvanceINVENTORYMANAGEMENT d. ReasonforStockpiling: greaterriskofdelay e. Solutiontohighercarryingcosts: Adjustaffiliate’sprofitmargins toreflectaddedcosts.21INVENTORYMANAGEMENT d. ReasoIV. SHORT-TERMFINANCINGIV. SHORT-TERMFINANCING A. Strategy 1. Identify: keyfactors 2. Formulate/evaluate: objectives 3. Describe: availableoptions 4. Developamethodology: tocalculate/comparecosts22IV. SHORT-TERMFINANCINGIV. SHSHORT-TERMFINANCINGB. KeyFactors 1.DeviationsfromInt’lFisherEffect? a.Ifyes trade-offrequiredbetween costandexchangerisk b.Ifno costsaresameeverywhere23SHORT-TERMFINANCINGB. KeyFacSHORT-TERMFINANCING 2. ExchangeRisk a. Offsetforeignassetswith foreignliabilities b. Borrowwherenoexposure increasesexchangerisk 3. Firm’sRiskAversion directrelationtopriceincurredto reduceexposure24SHORT-TERMFINANCING 2. ExchaSHORT-TERMFINANCING 4. DoesInterestRateParityHold? a. Yes.Currencyisirrelevant. b. No. Covercostsmaydiffer -addedriskmaymeanthe forwardpremium/discount doesnotoffsetinterestrate differentials.25SHORT-TERMFINANCING 4. DoesSHORT-TERMFINANCING 5. PoliticalRisk:Ifhigh, a. MNCsshould 1.) maximizelocalfinancing. 2.) Facedwithconfiscation orcurrencycontrols,fewerassets atrisk.

26SHORT-TERMFINANCING 5. PolitiSHORT-TERMFINANCINGC. Short-TermFinancingObjectives 1. FourPossibleObjectives: a. Minimizeexpectedcost. b. Minimizeriskwithoutregard tocost. c. Tradeoffexpectedcostand systematicrisk. d. Tradeoffexpectcostand totalrisk.27SHORT-TERMFINANCINGC. Short-TSHORT-TERMFINANCINGD. Short-TermFinancingOptions 1. ThreePossibilities a. Inter-companyloans b. Localcurrencyloans c. Euromarket28SHORT-TERMFINANCINGD. Short-TSHORT-TERMFINANCING 2. LocalCurrencyFinancing:Bank Loans a. Short-terminnature roleofcleanupclause b. Forms 1.) Termloans 2.) Lineofcredit 3.) Overdrafts 4.) RevolvingCredit 5.) Discounting29SHORT-TERMFINANCING 2. LocalSHORT-TERMFINANCING 3. CalculatingInterestCosts a. Effectiveinterestrate(EIR): mostefficientmeasure ofcost b. Basicformula: EIR=AnnualInterestPaid FundsReceived30SHORT-TERMFINANCING 3. CalcuSHORT-TERMFINANCING 4. CommercialPaper a. Definition: short-termunsecuredpromissory notegenerallysoldbylarge MNCsonadiscountbasis. b. Standardmaturities c. Bankfeeschargedfor: 1.) Backuplineofcredit 2.) Creditratingservice31SHORT-TERMFINANCING 4. Commer演讲完毕，谢谢观看！演讲完毕，谢谢观看！MultinationalFinancialManagement

AlanShapiro

7thEdition

J.Wiley&Sons

PowerPointsbyJosephF.Greco,Ph.D.CaliforniaStateUniversity,Fullerton33MultinationalFinancialManageCHAPTER19CURRENTASSETMANAGEMENTANDSHORT-TERMFINANCING34CHAPTER19CURRENTASSETMANAGECHAPTEROVERVIEW

I. INTERNATIONALCASH MANAGEMENT II. ACCOUNTSRECEIVABLE MANAGEMENT III. INVENTORYMANAGEMENT IV. SHORT-TERMFINANCING35CHAPTEROVERVIEW

I. INTERNATI. INTERNATIONALCASH MANAGEMENTI. INTERNATIONCASHMANAGEMENT A. SevenKeyAreas: 1. Organization 2. Collection/FundDisbursement 3. InteraffiliatePaymentsNetting 4. Excess-FundsInvestment 5. OptimalGlobalCashBalances 6. CashPlanning/Budgeting 7. BankRelations36I. INTERNATIONALCASH MANAGINTERNATIONALCASH MANAGEMENTB. GoalsofanInternationalCashManager 1. Quick/efficientcashcontrol 2. Optimalconservation/usageC. Organization: Centralize 1. Advantages: a. Efficientliquiditylevels b. Enhancedprofitability c. Quickerheadquarteraction37INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENT 1. Advantages(con’) d. Decisionmakingenhanced e. Bettervolumecurrency quotes f. Greatercashmanagement expertise g. Lesspoliticalrisk 38INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENTD. Collection/DisbursementofFunds 1. KeyElement: Acceleratecollections 2. AccelerationMethods: a. Cableremittances b. Mobilizationcenters c. Lockboxes d. Electronicfundtransfers

39INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENT 3. MethodstoExpediteCashPayments a. Cableremittances b. Establishaccountsinclient’sbank c. Negotiatewithbanks -obtainvaluedating40INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENTE. PaymentsNetting 1. Definition: offsetpaymentsofaffiliate receivables/payablessothatnet amounts onlyaretransferred. 2. CreateNettingCenter a. asubsidiarysetupinalocation withminimalexchangecontrols41INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENT 2. NettingCenters(con’t) b. Coordinateinteraffiliatepayment flows c. Center’svalueisadirectfunction oftransfervolume.42INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENTF. ExcessFundsInvestment 1. Majortask:

a. determineminimumcash balances b. short-terminvestmentof excessbalances 2. Requirements: a. Forecastofcashneeds b. Knowledgeofminimum cashposition43INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENT 3. InvestmentSelectionCriteria: a. Governmentregulations b. Marketstructure c. ForeigntaxlawsG. OptimalGlobalCashBalances 1. Establishcentrallymanagedcash pool 2. Requireaffiliatestohold minimum44INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENT 3. BenefitsofOptimalCashBalances a. Lessborrowingneeded b. Moreexcessfundinvestment c. Reducedinternalexpense d. Reducedcurrencyexposure

45INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENT H. BankRelations 1. GoodRelationsWillAvoid a. Lostinterestincome b. Overpricedservices c. Redundantservices46INTERNATIONALCASH MANAGEMEINTERNATIONALCASH MANAGEMENT 2. CommonBankRelations Problems a. Toomanybanks b. Highcosts suchascompensating balances c. Inadequatereporting d. Excessiveclearingdelays47INTERNATIONALCASH MANAGEMEII. ACCOUNTSRECEIVABLE MANAGEMENTII. ACCOUNTSRECEIVABLE MANAGEMENT A. TradeCredit extendedinanticipationofprofitby 1. expandedsalesvolume 2. retainingexistingcustomers48II. ACCOUNTSRECEIVABLE MANACCOUNTSRECEIVABLE MANAGEMENTB. CreditTermsShouldConsider 1. Salesforce 2. Adjustingbonusesforcostof creditsales.

49ACCOUNTSRECEIVABLE MANAGEMEIII. INVENTORYMANAGEMENTA. Problems: Seemtobemoredifficultdueto 1. Long,variabletransits 2. Lengthycustoms procedures

50III. INVENTORYMANAGEMENTA. PrINVENTORYMANAGEMENTB. ProductionLocation/InventoryControl 1. Overseaslocation mayleadtohigherinventory carryingcostsdueto a. largeramountsofwork-in- process b. morefinishedgoods51INVENTORYMANAGEMENTB. ProductINVENTORYMANAGEMENTC. AdvanceInventoryPurchases 1. Usuallywherethereareno forwardhedgesavailable 2. Anotherhedgingmethod: advanceinventorypurchasesof importeditems, i.e.inventorystockpiling.52INVENTORYMANAGEMENTC. AdvanceINVENTORYMANAGEMENT d. ReasonforStockpiling: greaterriskofdelay e. Solutiontohighercarryingcosts: Adjustaffiliate’sprofitmargins toreflectaddedcosts.53INVENTORYMANAGEMENT d. ReasoIV. SHORT-TERMFINANCINGIV. SHORT-TERMFINANCING A. Strategy 1. Identify: keyfactors 2. Formulate/evaluate: objectives 3. Describe: availableoptions 4. Developamethodology: tocalculate/comparecosts54IV. SHORT-TERMFINANCINGIV. SHSHORT-TERMFINANCINGB. KeyFactors 1.DeviationsfromInt’lFisherEffect? a.Ifyes trade-offrequiredbetween costandexchangerisk b.Ifno costsaresameeverywhere55SHORT-TERMFINANCINGB. KeyFacSHORT-TERMFINANCING 2. ExchangeRisk a. Offsetforeignassetswith foreignliabilities b. Borrowwherenoexposure increasesexchangerisk 3. Firm’sRiskAversion directrelationtopriceincurredto reduceexposure56SHORT-TERMFINANCING 2. ExchaSHORT-TERMFINANCING 4. DoesInterestRateParityHold? a. Yes.Currencyisirrelevant. b. No. Covercostsmaydiffer -addedriskmaymeanthe forwardpremium/discount doesnotoffsetinterestrate differentials.57SHORT-TERMFINANCING 4. DoesSHORT-TERMFINANCING 5. PoliticalRisk:If