INVESTMENTS AND CASH MANAGEMENT IN INDIANA PUBLIC SCHOOL CORPORATIONS
Abstract
The purposes of this study were to investigate the investment and cash management practices employed by Indiana public school corporations and to determine the existence and extent of any relationship between investment yield and the following three factors: education, training and experience of the cash and investment manager; cash management and investment practices; and fiscal ability. The factors which comprise the three major hypotheses were made up of a total of 54 indicators. SPSS subprograms including ONEWAY, T-TESTS, PEARSON CORRELATION and REGRESSION were used to test the three major hypotheses concerning differences and relationships to the dependent variable, investment yield. Tests of indicators for the first hypothesis showed education and field of study correlated significantly with investment yield. Test of the second hypothesis showed a significant correlation of computer use and certificates of deposit percent of use to investment yield. Test of the third hypothesis determined the existence of a significant correlation between investment yield and the following indicators: times funds were borrowed, interest expense, average balance in the Cumulative Building and Construction Funds, and General Fund and Cumulative Building Funds percent invested as a percent of total investments. Wealth was marginally significant in relation to investment yield. These conclusions were drawn: (1) The amount and type of education attained by the cash and investment manager, use of a computer in projecting cash flows, using a large proportion of certificates of deposit for investments, existence of relatively large cash balances in the Cumulative Building and/or Construction Funds and having a relatively large proportion of the overall investment program represented by the General or Cumulative Building Fund had a significant and positive relationship to investment yield. (2) Those school corporations which borrowed and had a large interest expense had a significant negative correlation with investment yield.
Degree
Ph.D.
Subject Area
Business education
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