Functional Data Analysis for Optimizing Strategies of Cash-Flow Management

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Abstract

The cash management deals with problem of automating and managing cash-flow processes. Optimization of the management processes greatly reduces overall cash handling costs. The present analysis is an empirical study of cash flows, from and to bank branches, deriving an underlying theoretical framework, which can in a reasonable way be connected with the optimal strategy. Functional data analysis is considered an appropriate framework to analyze the dynamics of the time series behavior of cash flows: since the observations are not equally spaced in time and their number is different for each series, they are converted into a collection of random curves in a space spanned by finite dimensional functional bases. A central issue in the analysis is describing specific patterns of the curves, taking into account the temporal dependence, and the dependence between curves. The analysis provides a dynamic cash management model that is applied with alternative strategies for programming a cash in transit for the difference between cash inflows and cash outflows in a fixed interval of time. As the strategies are affected by changes in the behavior of the cash flows, the dynamic model outperforms more traditional approaches in identifying the optimal strategy.
Lingua originaleEnglish
Titolo della pubblicazione ospiteStudies in Classification, Data Analysis, and Knowledge Organization
Pagine219-230
Numero di pagine12
Stato di pubblicazionePublished - 2017

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Cash flow
Cash
Cash management
Optimal strategy
Bank branches
Management process
Programming
Management model
Costs
Empirical study
Theoretical framework

All Science Journal Classification (ASJC) codes

  • Computer Science Applications
  • Information Systems
  • Information Systems and Management
  • Analysis

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Chiodi, M., & Di Salvo, F. (2017). Functional Data Analysis for Optimizing Strategies of Cash-Flow Management. In Studies in Classification, Data Analysis, and Knowledge Organization (pagg. 219-230)

Functional Data Analysis for Optimizing Strategies of Cash-Flow Management. / Chiodi, Marcello; Di Salvo, Francesca.

Studies in Classification, Data Analysis, and Knowledge Organization. 2017. pag. 219-230.

Risultato della ricerca: Chapter

Chiodi, M & Di Salvo, F 2017, Functional Data Analysis for Optimizing Strategies of Cash-Flow Management. in Studies in Classification, Data Analysis, and Knowledge Organization. pagg. 219-230.
Chiodi M, Di Salvo F. Functional Data Analysis for Optimizing Strategies of Cash-Flow Management. In Studies in Classification, Data Analysis, and Knowledge Organization. 2017. pag. 219-230
Chiodi, Marcello ; Di Salvo, Francesca. / Functional Data Analysis for Optimizing Strategies of Cash-Flow Management. Studies in Classification, Data Analysis, and Knowledge Organization. 2017. pagg. 219-230
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