Relationship between firm investment and financial status


Assignment:

Financial Decisions

I would say they the relationships are fairly strong with the involvement of firm's financial counterparts. This puts the financial group in a position to overcome obstacles by bringing full enterprise transparency to the table. As a result, supply chain decision makers can identify the value that accrues from improving transactions with suppliers, distributors, and customers across the business enterprise (Poirier, Quinn, & Swink, 2009).

However, according to Sean Clearly, firms with high creditworthiness are extremely sensitive to the availability of their internal funds; less creditworthiness firms are much less sensitive to internal fund availability. The investment decisions of firms operating in such environments are sensitive to the availability of internal funds because they possess a cost advantage over external funds (1999). This is one aspect as to why certain aspects of financial collaborations aren't always 100 percent transparent. What are your thoughts?

Works Cited

Clearly, S. (1999). The Relationship between Firm Investment and Financial Status. The Journal of Finance, 54, (2), 673-692.

Poirier, C., Quinn, F., & Swink, M. (2009). Diagnosing Greatness : Ten Traits of the Best Supply Chains.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Relationship between firm investment and financial status
Reference No:- TGS02084313

Now Priced at $25 (50% Discount)

Recommended (91%)

Rated (4.3/5)