A multiple objective stochastic programming model for working capital management

The level of working capital is one of the main financial decisions affecting a firm's value, shareholder wealth, competitiveness, liquidity, and profitability. An aggressive (conservative) working capital policy has a positive (negative) impact on profitability but a negative (positive) impact...

Celý popis

Uloženo v:
Podrobná bibliografie
Vydáno v:Technological forecasting & social change Ročník 131; s. 141 - 146
Hlavní autoři: Masri, Hatem, Abdulla, Yomna
Médium: Journal Article
Jazyk:angličtina
Vydáno: New York Elsevier Inc 01.06.2018
Elsevier Science Ltd
Témata:
Competition
Competitiveness
Liquidity
Multiple objective analysis
Multiple objective stochastic programming
Objectives
Profitability
Profits
Regression
Retailing industry
Stochastic goal programming
Stochastic models
Stochastic programming
Stockholders
Studies
Wealth
Working capital
Working capital
Regression
Stochastic goal programming
Multiple objective stochastic programming
Retailing industry
ISSN:0040-1625, 1873-5509
On-line přístup:Získat plný text
Tagy: Přidat tag
Žádné tagy, Buďte první, kdo vytvoří štítek k tomuto záznamu!
Popis
Shrnutí:The level of working capital is one of the main financial decisions affecting a firm's value, shareholder wealth, competitiveness, liquidity, and profitability. An aggressive (conservative) working capital policy has a positive (negative) impact on profitability but a negative (positive) impact on liquidity. In this paper, we propose a multiple objective stochastic programming model to select an efficient working capital strategy that takes into consideration not only the conflicting impact of working capital policy on the two firm objectives of liquidity and profitability but also the interrelationships and stochastic aspects of the components of working capital. The proposed model was used to help a start-up retailer to determine its optimal working capital. •A multiple objective stochastic program to identify the level of working capital.•Liquidity and profitability and stochastic level of sales are considered in the proposed model.•The derived results guided an investment decision for a start-up retailor in Bahrain.
Bibliografie:ObjectType-Article-1
SourceType-Scholarly Journals-1
ObjectType-Feature-2
content type line 14
ISSN:0040-1625
1873-5509
DOI:10.1016/j.techfore.2017.05.006