ÇOKULUSLU ŞİRKETLERİN ÖDEMELERİNİN NETLEŞTİRİLMESİNE YÖNELİK BİR TEORİK ÇALIŞMA (A THEORETICAL STUDY ON PAYMENTS NETTING IN MULTINATIONAL FIRMS)

In order to optimize the parent-subsidiary and inter-subsidiary cash flows in a multinational corporation, cash flows should be monitored and managed centrally. Netting is one of the most common techniques used for optimizing cash flow movements and can be implemented with the joint effort of subsidiaries or by the centralized cash management group. This technique optimizes cash flows by reducing the overall administrative and transaction costs that result from currency conversion and cross-border cash transfers. Although any firm, whether domestic or multinational, can minimize its costs by netting out payments, multinationals seem to benefit more than domestic firms