Title

On bank debt substitution: the effect of management conservatism on trade credit, amidst tight monetary policy

Date of Publication

2016

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Accountancy

Subject Categories

Accounting | Business

College

Ramon V. Del Rosario College of Business

Department/Unit

Accountancy

Thesis Adviser

Herminigilda Salendrez

Defense Panel Member

Rodiel C. Ferrer
Mark Vincent Bendo

Abstract/Summary

The increased pressure to be competitive has caused businesses from different industries to leverage their operations. Because of this, much research has been focused on explaining what allows businesses greater access to credit however, such has tended to focus on bank debt, which is why we, instead, focus on trade credit and the power of management conservatism in allowing firms access to such. In addition, we also study the extent through which trade credit can be used as a substitute for bank credit during bouts of tight monetary policy. We tested both hypothesis through the use of a random effects model and with data from 2004–2014 for publicly listed firms in the Philippines. Our findings allowed us to conclude that management conservatism is positively associated with trade credit although, we also found evidence against the existence of a substitution effect between trade and bank credit in the Philippines.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU23415

Shelf Location

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

Physical Description

vi, 98 leaves: illustrations (some colored); 29 cm. + 1 computer disc.

Keywords

Commercial credit -- Philippines; Credit -- Philippines -- Management; Corporations -- Philippines -- Finance

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