This is a process of Planning, controlling, and accounting for cash transactions and cash balances.It is channeling available cash into expenditures that enhance productivity, directly or indirectly.
(Hampton, 2001) Waltson and Head (2007) explained Cash management as the concept which is concerned with optimizing the amount of cash available, maximizing the interest earned by spare funds not required immediately and reducing losses caused by delays in the transmission of funds.
According to Zimmerer et al (2008) cash management is the process of forecasting, collecting, disbursing, investing, and planning for cash a company needs to operate smoothly.
Finally, poor cash flow makes it difficult to hire and retain good employees.
Westerfield et al, 1999 noted that it is important to distinguish between true cash management and a more general subject of liquidity management.
The firm should keep sufficient cash, neither more nor less.
Cash shortage will disrupt the firm’s manufacturing operations while excessive cash will simply remain idle.
This chapter discusses the theoretical framework, empirical review both covering early studies between 1980 to 1999 and the current studies covers 2000 to 2009.
At the end the summary of whole discussion has been provided..
(Pandey, 2007) Cash is the money which a firm can disburse immediately without any restriction.
The term cash includes coins, currency and cheques held by the firm, and balances in its bank accounts.
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