Title: Financial management of publicly funded research activities: an explorative study

Authors: Marco Romano; Melita Nicotra; Papa Armando; Emilia Castello

Addresses: Department of Economics and Business, University of Catania, Corso Italia, 55, 95129, Catania, Italy ' Department of Economics and Business, University of Catania, Corso Italia, 55, 95129, Catania, Italy ' Department of Informatics, University of Turin, Turin, Italy, Via Pessinetto, 12, 10149, Torino, Italy ' Department of Economics and Business, University of Catania, Catania, Italy, Corso Italia, 55, 95129, Catania, Italy

Abstract: This research deals with the analysis of financial management, with a specific focus on cash flows, within in-house publicly controlled companies operating in high-technology sectors and characterised by the relevant participation in research projects financed by the European Structural Funds. To this end, three research questions are formulated relating to the liquidity cycle of such organisations. They focus respectively on the risk and return trade-off, on the variability of their cash flows and on the relation between the liquidity and the yields of the financial tools owned. A public-private consortium was the subject of analysis to answer the research questions. Specifically, the Miller-Orr model is applied to the consortium's cash flows to provide managerial recommendations for the future and a course of action.

Keywords: financial management; in-house publicly controlled companies; publicly funded research.

DOI: 10.1504/IJMFA.2018.091071

International Journal of Managerial and Financial Accounting, 2018 Vol.10 No.1, pp.1 - 15

Received: 14 Jun 2016
Accepted: 23 Oct 2017
Published online: 09 Apr 2018 *

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