Cash Management in Corporate Groups with a Focus on the Use of Cash Pooling

This thesis deals with the importance and management of cash within corporate groups. The work primarily focuses on the cash pooling instrument and its use for the efficient management of financial resources between parent companies and subsidiaries. This tool is examined from tax, accounting, reporting, regulatory, contractual, and implementation perspectives. The thesis discusses various types of cash pooling, such as physical and notional, hybrid, in-house and bank-led, as well as international cash pooling. Emphasis is placed on their advantages and disadvantages in the context of different corporate group needs. The thesis also focuses on the arm’s length principle, which must be observed in intra-group transactions between related parties, including recommended methods for determining transfer pricing. The aim of the thesis is thus to provide an overview of the importance of cash, the options for cash management in corporate groups, and a comprehensive analysis of cash pooling, including its associated legal frameworks and implementation. The final part of the thesis primarily analyzes the cash liquidity of Czech companies of various sizes during the years 2014–2023, with a focus on the differences between parent and subsidiary companies and the impact of the pandemic. The analysis further concentrates on identifying and assessing the degree of cash concentration in Czech parent companies.