Dynamics of financial system

A system dynamics approach

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

There are several ratios which define the financial health of an organization but the importance of Net cash flow, Gross income, Net income, Pending bills, Receivable bills, Debt, and Book value can never be undermined as they give the exact picture of the financial condition. While there are several approaches to study the dynamics of these variables, system dynamics based modelling and simulation is one of the modern techniques. The paper explores this method to simulate the before mentioned parameters during production capacity expansion in an electronic industry. Debt and Book value have shown a non-linear pattern of variation which is discussed. The model can be used by the financial experts as a decision support tool in arriving at conclusions in connection to the expansion plans of the organization.

Original languageEnglish
Pages (from-to)14-26
Number of pages13
JournalInternational Journal of Economics and Financial Issues
Volume3
Issue number1
Publication statusPublished - 01-01-2013

Fingerprint

System dynamics
Financial system
Debt
Book value
Modeling and simulation
Income
Capacity expansion
Financial condition
Electronics industry
Net income
Decision support
Financial health
Cash flow
Production capacity

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

Cite this

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Dynamics of financial system : A system dynamics approach. / Nair, Girish K.; Rodrigues, Lewlyn Lester Raj.

In: International Journal of Economics and Financial Issues, Vol. 3, No. 1, 01.01.2013, p. 14-26.

Research output: Contribution to journalArticle

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