Portfolio management approach in trade credit decision making
The basic financial purpose of an enterprise is maximization of its value Trade credit 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...
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| Format: | Article |
| Language: | English |
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Institute of International Politics and Economics, Belgrade
2007-01-01
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| Series: | Međunarodni Problemi |
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| Online Access: | http://www.doiserbia.nb.rs/img/doi/0025-8555/2007/0025-85550704546M.pdf |
| _version_ | 1797284688698540032 |
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| author | Michalski Grzegorz |
| author_facet | Michalski Grzegorz |
| author_sort | Michalski Grzegorz |
| collection | DOAJ |
| description | The basic financial purpose of an enterprise is maximization of its value Trade credit 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 maximization of enterprise value. The enterprise value maximization strategy is executed with a focus on risk and uncertainty. This article presents the consequences that can result from operating risk that is related to purchasers using payment postponement for goods and/or services. The present article offers a method that uses portfolio management theory to determine the level of accounts receivable in a firm. |
| first_indexed | 2024-03-07T17:52:23Z |
| format | Article |
| id | doaj.art-042f3582867c422e829f921bedc31ff8 |
| institution | Directory Open Access Journal |
| issn | 0025-8555 |
| language | English |
| last_indexed | 2024-03-07T17:52:23Z |
| publishDate | 2007-01-01 |
| publisher | Institute of International Politics and Economics, Belgrade |
| record_format | Article |
| series | Međunarodni Problemi |
| spelling | doaj.art-042f3582867c422e829f921bedc31ff82024-03-02T13:36:01ZengInstitute of International Politics and Economics, BelgradeMeđunarodni Problemi0025-85552007-01-0159454655910.2298/MEDJP0704546MPortfolio management approach in trade credit decision makingMichalski GrzegorzThe basic financial purpose of an enterprise is maximization of its value Trade credit 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 maximization of enterprise value. The enterprise value maximization strategy is executed with a focus on risk and uncertainty. This article presents the consequences that can result from operating risk that is related to purchasers using payment postponement for goods and/or services. The present article offers a method that uses portfolio management theory to determine the level of accounts receivable in a firm.http://www.doiserbia.nb.rs/img/doi/0025-8555/2007/0025-85550704546M.pdfmaximization of enterprise valuetrade credit managementincremental analysisportfolio management theory analysis |
| spellingShingle | Michalski Grzegorz Portfolio management approach in trade credit decision making Međunarodni Problemi maximization of enterprise value trade credit management incremental analysis portfolio management theory analysis |
| title | Portfolio management approach in trade credit decision making |
| title_full | Portfolio management approach in trade credit decision making |
| title_fullStr | Portfolio management approach in trade credit decision making |
| title_full_unstemmed | Portfolio management approach in trade credit decision making |
| title_short | Portfolio management approach in trade credit decision making |
| title_sort | portfolio management approach in trade credit decision making |
| topic | maximization of enterprise value trade credit management incremental analysis portfolio management theory analysis |
| url | http://www.doiserbia.nb.rs/img/doi/0025-8555/2007/0025-85550704546M.pdf |
| work_keys_str_mv | AT michalskigrzegorz portfoliomanagementapproachintradecreditdecisionmaking |