A logit analysis on the determinants of the decision of SMEs to engage in cash management solutions in the Philippines

Date of Publication

2013

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Junette A. Perez

Defense Panel Chair

Camille Concepcion
Steve Lim

Abstract/Summary

This paper aims to identify the determinants that affect the decisions of SMEs on whether or not to engage in cash management solutions. It proposes a model aimed at establishing the significance of the determinants identified-- cost, time, user-friendliness, usefulness, convenience, security, and responsiveness-- and at determining their effects on the SMEs' decision. To achieve such objectives, the paper uses logit analysis. This econometric approach is used following a survey involving at least thirty SMEs, both engaged and not engaged in online banking, as its respondents, chosen by quota sampling. The chosen research and sampling design may pose problems with regard to accuracy, generalizability, and reliability of results. It is, hence, suggested that other methods of research and sampling be explored for further verification by those conducting further studies on the matter. The results of the study mostly cover the bank's need for continuous innovation that the market would accept. As such, conclusions derived will be of assistance in determining how SMEs weigh each factor as against the engagement in cash management solutions and, consequently, provide insight to banks on which factor to prioritize in case of instances requiring trade-offs. Unlike other studies that expound on individual's engagement in online banking and SME's engagement in online banking for trade, this paper focuses on SME's engagement in cash management solutions, specifically.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21880

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

70, [20] leaves : illustrations

Keywords

Small business--Philippines; Cash management--Philippines; Small business--Finance

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