A Note on a Planning Horizon Model of Cash Management

B-Tier
Journal: Journal of Financial and Quantitative Analysis
Year: 1971
Volume: 6
Issue: 1
Pages: 659-664

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The problem of cash management, in its simplest form, is to formulate decision rules which control the level of a firm's cash balance to meet its demands for cash at minimum total discounted cost. Control is achieved by transacting securities for cash. The cost of control is the commission expense [13]. Optimality depends on balancing excess opportunity costs of holding balances which are too large and having excess buying and selling costs (to meet cash obligations) of balances which are too small.

Technical Details

RePEc Handle
repec:cup:jfinqa:v:6:y:1971:i:01:p:659-664_02
Journal Field
Finance
Author Count
1
Added to Database
2026-01-29