Multinational working capital management a study on Toyota Motor Corporation

Suranjan Bhattacheryay

International Journal of Finance & Economics, 2023, vol. 28, issue 1, 236-256

Abstract: The purpose of the study is to explore the influence of three factors on working capital management—fixation of current assets level—level of investment for each type of current asset components—sourcing of finance at competitive rate. A further study is made on MNCs effectiveness in managing working capital besides to weigh how they re‐position profits, cash flows and capital within to maximize profitability. Present globalised and integrated economy, facilitate MNCs to internationalise business by acquiring intangible assets besides optimising resources. MNCs all these activities invite challenges in continuing global presence. In‐spite of all odds, MNCs generate, capture value by applying unique business models besides combining with or buying foreign business and play a major force in driving globalisation of world economy. The study is descriptive and based on secondary data, sourced from the annual reports of Toyota Motor Corporation. Statistical techniques like coefficient of correlation, correlation matrix and least squares method, are used for analysis and past six years performances are critically analyzed to justify research questions. The message of the paper is to have now a well‐designed global fund transfer policy, economy friendly tax regime and modest regulations in lessening MNCs challenges.

Date: 2023
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