| dc.description.abstract | One of the key important roles of financial managers is to figure out a good strategy
for satisfying daily operation expenses. Despite the traditional methods such as raising new
capital, using loans from bank organizations, some enterprises, especially financial
constrained enterprises, are willing to achieve benefits of new alternatives – late payment
agreements. Prior studies pointed to some countries achieving substantial development of
trade credit as the assistant to firms in distressed situations, similar to Vietnam where trade
credit is one of two top options for enterprises in financing. This research with the aim of
evaluating the potential of trade credit in Vietnamese market, has examined 708 listed
companies on both Ho Chi Minh Stock Exchange and Hanoi Stock Exchange in 10 years
period from 2009 to 2018. We test whether trade credit is a good alternative for companies
in financing or it contains huge implicit risks and the effect of state ownership to the use
of trade credit. Overall, the research results are expected to verify the substitute effect (if
any) of bank credit and trade credit in the market of Vietnam. | en_US |
