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http://dx.doi.org/10.13106/jafeb.2020.vol7.no6.085

The Impact of Cash Flow Statement on Lending Decision of Commercial Banks: Evidence from Vietnam  

NGUYEN, Dung Duc (School of Accounting and Auditing, National Economics University)
NGUYEN, Anh Huu (School of Accounting and Auditing, National Economics University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.6, 2020 , pp. 85-93 More about this Journal
Abstract
The paper investigates the impact of the statement of cash flows of listed companies on lending decisions of commercial banks in the context of Vietnam. Survey data for the research were collected from 160 credit officers of Vietnamese commercial banks for short-term and long-term lending decisions, whether the cash flow statement includes complete information or has a lack of information. The cash flow statement, in which the information on the cash flow is completely contrary to the profit information on the income statement is examined. This paper employed T-tests to address the research issues in a market considered to be ineffective, like Vietnam. The research results show: (1) the information on the cash flow statement affects both the short-term and long-term lending decisions of credit officers, and (2) the lack of information on the cash flow statement in both cases of positive and negative profits affects the comfort and confidence of credit officers in making decisions. The research findings also indicate that cash flow statements are important for lending decisions of credit institutions in Vietnam. Therefore, this paper provides a new insight to managers on how to improve the quality of cash flow statement to meet the needs of lenders.
Keywords
Cash Flow Statement; Decision Making; Lenders; Vietnam Stock Market; Non-Financial Listed Companies;
Citations & Related Records
Times Cited By KSCI : 10  (Citation Analysis)
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