Cash Management Routines: Evidence from Spain

25 Pages Posted: 12 Jun 2010

See all articles by Txomin Iturralde

Txomin Iturralde

University of the Basque Country - Department of Financial Economics II

Amaia Maseda

University of Basque Country UPV/EHU

Leire San-Jose

University of Huddersfield; University of the Basque Country - Department of Financial Economics II

Date Written: April 1, 2009

Abstract

The purpose of this article is to provide an overview of corporate treasury management, understood as the application of cash management. The decision-making actions of treasury department heads are analysed and have been confirmed by empirical evidence. This article seeks to contribute to the ongoing debate in financial literature by analysing the extent to which the size of companies, the sectors in which they operate and the training of financial decision-makers influence treasury management. In this way, companies seek maximise results obtained by the treasury department and, therefore, maximise the value of the firm. The results confirm the idea that there is a culture of cash management and that whether or not new treasury management techniques are used depends more on the initiative of the treasury manager than on the size of the corporation, the sector to which it belongs or the training of the decision-maker.

Keywords: Corporate Finance, Cash Management, Firm Size, Discriminant Analysis, Cluster Analysis

JEL Classification: G31, G32

Suggested Citation

Iturralde, Txomin and Maseda, Amaia and San-Jose, Leire, Cash Management Routines: Evidence from Spain (April 1, 2009). Frontiers in Finance and Economics, Vol. 6, No. 1, pp. 93-117, April 2009, Available at SSRN: https://ssrn.com/abstract=1623806

Txomin Iturralde

University of the Basque Country - Department of Financial Economics II ( email )

Avenida del Lehendakari Agirre 83
48015 Bilbao
Spain

Amaia Maseda (Contact Author)

University of Basque Country UPV/EHU ( email )

Avenida del Lehendakari Agirre 83
Bilbao, 48015
Spain

HOME PAGE: http://https://www.ehu.eus/es/web/catedra-empresa-familiar/amaia.maseda

Leire San-Jose

University of Huddersfield ( email )

Queensgate
Huddersfield HD1 3DH, West Yorkshire HD1 3DH
United Kingdom

HOME PAGE: http://www2.hud.ac.uk/uhbs/staff/staff_profiles/leire_san-jose.php

University of the Basque Country - Department of Financial Economics II ( email )

Avenida del Lehendakari Agirre 83
48015 Bilbao
Spain

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