Factoring and the Firm Value

Michalski, Grzegorz

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Factoring and the Firm Value

FACTA UNIVERSITATIS Series: Economics and Organization, Vol. 5, No. 1, pp. 31-38, 2008

8 Pages Posted: 24 May 2011 Last revised: 18 May 2014

See all articles by Grzegorz Michalski

Grzegorz Michalski

Technical University in Košice (TUKE); Uniwersytet Ekonomiczny we Wrocławiu - Faculty of Engineering and Economics

Date Written: May 17, 2014

Abstract

The basic financial purpose of an enterprise is the maximization of its value. Operating cycle management should also contribute to realization of this fundamental aim. The enterprise value creation strategy is executed with a focus on risk and uncertainty. This paper presents the consequences for the firm that can result from changes in operating cycle and operating risk that are related to using factoring as instrument to short target operating cycle of the firm and advantages resulting in risk reduction caused by transferring it to factor.

Keywords: Corporate risk management, operating risk, factoring, operating cycle

Suggested Citation: Suggested Citation

Michalski, Grzegorz and Michalski, Grzegorz, Factoring and the Firm Value (May 17, 2014). FACTA UNIVERSITATIS Series: Economics and Organization, Vol. 5, No. 1, pp. 31-38, 2008, Available at SSRN: https://ssrn.com/abstract=1844306