Management authority and a new model of corporate governance

This volume investigates primarily the arbitrage theory as motivation for how managers allocates cash to parent companies and to posterior branches of the transfer of assets.
The outsourcing companies offer the opportunity of examining the determinants of cash reserves, avoiding the effects that generates uncertainties of the theory of ranking funding sources.

The book researches the determinants of cash holding for 205 Romanian companies for the period 2000-2008 (a study period of eight years) and at the same time, examines the corporate decisions on liquidity for a sample of 149 Romanian companies, which have made a disposition of assets between 1995 and 2008 resulting in a total of 154 branches (one relevant 13 years study).

The study results are consistent with previous research and shows that firm size, cash flow, uncertainty of cash flow, net current assets capital and debt rate significantly affect the holding of reserves by large and small firms in Romania.