| dc.description.abstract | This study, using a case study approach, focuses on the financial management practices and issues of two French-Thai joint ventures Danone (Thailand) Company and Prestia Lafarge (Thailand) Company. Danone is a consumer product company, mainly catering to the needs of the local Thai markets. In Danone, the French partner has 49% shareholding but it dominates the management decision making. Prestia is an industrial product. BoI (Board of Investment) promoted company, mainly focusing on the export markets in the South East-Asian region. In Prestia, the Thai partner has 60% shareholding but both the French and the Thai partners equally share the management decision making. Both companies follow sound financial management practices in the area of working capital management, investment, financing and dividend decisions, long term financing and international financial management. The significant differences between the two companies appear in terms of the influence of the parent companies on the decision making. Financial decision making is quite independent in Prestia while the parent company closely monitors the financial management practices of Danone (Thailand). Yet another difference is in the long-term financing patterns of the two companies. Danone is more aggressive in the use of debt than Prestia. This may be attributed to the nature of the two companies businesses; Danone has high liquidity and less risk as compared to Prestia. In both companies, the local partners play a passive role in the management of the companies. | en |
