Operational Risk of the Buyers - Portfolio Management Approach in Accounts Receivables Management

Michalski, Grzegorz

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Operational Risk of the Buyers - Portfolio Management Approach in Accounts Receivables Management

Zarzadzanie finansami firm - teoria i praktyka, PNAE No. 1159, pp. 260-273, B. Bernas, W. Pluta, Wroclaw, 2007

13 Pages Posted: 23 Aug 2007

See all articles by Grzegorz Michalski

Grzegorz Michalski

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

Abstract

Wealth maximization is the basic financial aim in management of an enterprise. Accounts receivables management must contribute to the realization of this aim. The article presents the method of determination accounts receivables in a firm based on portfolio management theory. Level of accounts receivables in a firm increases net working capital and costs of holding and managing accounts receivables. Both of them decrease value of the firm but liberal policy in accounts receivables with portfolio management approach could increase it.

Note: Downloadable PDF is in Polish.

Keywords: Demand for Cash, Cash balances, Risk, Uncertainty, Real Options, Option Value of Money, Short-Term Financial Management, Working Capital Management

JEL Classification: G39, G32, G11, M11, D81, O16, P33, P34

Suggested Citation: Suggested Citation

Michalski, Grzegorz and Michalski, Grzegorz, Operational Risk of the Buyers - Portfolio Management Approach in Accounts Receivables Management. Zarzadzanie finansami firm - teoria i praktyka, PNAE No. 1159, pp. 260-273, B. Bernas, W. Pluta, Wroclaw, 2007 , Available at SSRN: https://ssrn.com/abstract=1007600