TitleOn the formal foundations of cash management systems
Publication TypeJournal Article
Year of PublicationIn Press
AuthorsSalas-Molina F, Rodríguez-Aguilar JA, Pla-Santamaria D, García-Bernabeu A
JournalOperational Research
KeywordsFinance, formal reasoning, graph theory, multiple accounts

Cash management aims to find a balance between what is held in cash and what is allocated in other investments in exchange for a given return. Dealing with cash management systems with multiple accounts and different links between is a complex task. Current cash management models provide analytic solutions without exploring the underlying structure of accounts and its main properties. There is a need for a formal definition of cash manage- ment systems. In this work, we introduce a formal approach to manage cash with multiple accounts based on graph theory. Our approach allows a formal reasoning on the relation between accounts in cash management systems. A critical part of this formal reasoning is the characterization of desirable and non-desirable cash management policies. Novel theoretical results guide cash managers in the analysis of complex cash management systems.