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Cash management economies in the production of food
Author(s) -
Koshal Manjulika,
Koshal Rajindar K.
Publication year - 1983
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090040408
Subject(s) - cash , economies of scale , production (economics) , operating cash flow , cash management , economics , scale (ratio) , microeconomics , generalization , business , monetary economics , industrial organization , finance , mathematical analysis , physics , mathematics , quantum mechanics
This study suggests that the behavior of demand of cash by business firms can better be understood by empirical testing theory on data derived from individual units rather than making unrealistic assumptions to justify testing of aggregated data. Using data for firms in the food industry, this study shows that the rate of interest is a significant variable in explaining the demand for cash. Furthermore, the statistical results indicate that the economies of scale in the management of cash depends upon the type of goods produced by the corporations under study. Accordingly, one cannot make any generalization regarding the question of the economies of scale in the management of cash.