Wpływ Długości Cyklu Operacyjnego Na Wzrost Wartości Przedsiębiorstwa (Operating Cycle Length Influence on Value of the Firm Creation, in Polish)
FINANSE WOBEC SFERY REALNEJ GOSPODARKI (FINANCE IN REAL ECONOMY), K. Znaniecka, T. Zieliński, eds., Katowice, 2008
7 Pages Posted: 14 Nov 2011
Date Written: January 13, 2008
The basic financial purpose of an enterprise is maximization of its value. Operating cycle management should also contribute to realization of this fundamental aim. Many of the current asset management models that are found in financial management literature assume book profit maximization as the basic financial purpose. These book profit-based models could be lacking in what relates to another aim (i.e., maximization of enterprise value). The enterprise value maximization strategy is executed with a focus on risk and uncertainty. This article presents the consequences for the firm that can result from operating risk that is related to unsuitable target operating cycle.
Note: Downloadable document is in Polish.
Keywords: operating cycle, working capital, liquidity, cash value, value of the firm
JEL Classification: G32
Suggested Citation: Suggested Citation