Iranian Designing a System Dynamic Model for Corporate Cash Management

Subject Areas : مدیریت

Mahmood  Alborzi ¹ (استادیار، دانشگاه آزاد اسلامی، واحد علوم و تحقیقات، گروه مدیریت، تهران، ایران)
Keyvan  Dadras ² (دانشجوی دکتری، دانشگاه آزاد اسلامی، واحد علوم و تحقیقات، گروه مدیریت، تهران، ایران)
Davood  Gharakhany ³ (دانشجوی دکتری، دانشگاه آزاد اسلامی، واحد قزوین، گروه مدیریت، قزوین، ایران)

Received: 2015-01-21 Accepted : 2015-07-23 Published : 2016-03-10

Keywords: Cash Management, Dynamic systems, Cash Budget, Incoming Cash Flow, Outgoing Cash Flow,

Abstract :

Cash management is one of the main topics of corporate financial management. Liquidity is the company's ability to fulfill short-term obligations. Budget preparation is one of the most important short-term financial forecasting tools for cash management in companies. Cash budget plans input and output cash flows in a period. Using this method the courses the company is faced with surplus cash and the courses in which the company is faced with shortage of these funds and has to supply it are determined. In this study, it has been attempted to while analyzing the causative relationships among the components of incoming and outgoing cash flow, a system dynamic model is proposed for planning organizations’ cash funds. Using the proposed model the incoming and outgoing cash flows are predicted and by providing different scenarios to address liquidity shortages, the variable changes of the model and their effect on liquidity of the company are discussed.