Browse > Article
http://dx.doi.org/10.13106/jafeb.2020.vol7.no9.351

Credit Management Guidelines to Strengthen Thai Industrial Sector  

KULCHITTIVEJ, Chittikhun (Faculty of Business Administration, King Mongkut's University of Technology North Bangkok)
PORNPUNDEJWITTAYA, Pairat (Faculty of Business Administration, King Mongkut's University of Technology North Bangkok)
SILPCHARU, Thanin (Faculty of Business Administration, King Mongkut's University of Technology North Bangkok)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.9, 2020 , pp. 351-362 More about this Journal
Abstract
This research investigates the credit management guidelines to strengthen Thai industrial sector. The research has been simulated from the findings of both qualitative and quantitative of 500 questionnaires distributed to industrial business executives in Thailand. The data were analyzed by descriptive analysis categorized into SME and large enterprises, and SEM to conduct the model in consistent with the empirical data. The results show that: (1) the credit management guidelines consist of 4 factors: a) characteristics management b) financial management c) operations management and d) assets management. The business executives gave overall importance on the guidelines at a high level with an average of 3.86. (2) The development of SEM shows that the model fits with the empirical data at Chi-Square probability level = 0.084, CMIN/DF = 1.164, GFI = 0.965 and RMSEA = 0.018. (3) The characteristics management directly influences the financial management and the operation management. The financial management directly influences on the assets management. The assets management has direct influence on the operations management. The findings show that the characteristics management is the essential starting component in SEM and the financial management factor has the most influence in the assets management variable with standard regression weight of 0.990.
Keywords
Credit Management; Loan Borrowing; Thai Industrial Sector; Thailand;
Citations & Related Records
Times Cited By KSCI : 8  (Citation Analysis)
연도 인용수 순위
1 Vernimmen, P., Quiry, P., Dallocchio, M., Le Fur, Y., & Salvi, A. (2009). Corporate finance: theory and practice. Hoboken, NJ: John Wiley & Sons.
2 White, G. I., Sondhi, A. C., & Fried, D. (2003). The analysis and use of financial statements (Vol. 1). Hoboken, NJ: John Wiley & Sons.
3 van der Veer, K. J., & Hoeberichts, M. M. (2016). The level effect of bank lending standards on business lending. Journal of Banking & Finance, 66, 79-88.   DOI
4 Culp, C. L. (2011). Structured finance and insurance: the ART of managing capital and risk (Vol. 339). Hoboken, NJ: John Wiley & Sons.
5 Fabozzi, F. J., & Peterson, P. P. (2003). Financial management and analysis (Vol. 132). Hoboken, NJ: John Wiley & Sons.
6 Ha, V. D. (2020). Impact of Organizational Culture on the Accounting Information System and Operational Performance of Small and Medium Sized Enterprises in Ho Chi Minh City. Journal of Asian Finance, Economics, and Business, 7(2), 301-308. https://doi.org/10.13106/jafeb.2020.vol7.no2.301   DOI
7 Haseeb, M., Hussain, H. I., Slusarczyk, B., & Jermsittiparsert, K. (2019). Industry 4.0: A solution towards technology challenges of sustainable business performance. Social Sciences, 8(5), 154.   DOI
8 Hitchner, J. (2010). Financial Valuation, Website: Applications and Models (Vol. 545). Hoboken, NJ: John Wiley & Sons.
9 Hoang, C. C., & Ngoc, B. H. (2019). The Relationship between Innovation Capability and Firm's Performance in Electronic Companies, Vietnam. Journal of Asian Finance, Economics and Business, 6(3), 295-304. https://doi.org/10.13106/jafeb.2019.vol6.no3.295   DOI
10 Hood Jr, L. P., & Lee, T. R. (2011). A Reviewer's Handbook to Business Valuation: Practical Guidance to the Use and Abuse of a Business Appraisal. Hoboken, NJ: John Wiley & Sons.
11 Hugos, M. H. (2018). Essentials of supply chain management. Hoboken, NJ: John Wiley & Sons.
12 Imran, M., Hameed, W., & Haque, A. (2018). Influence of industry 4.0 on the production and service sectors in Pakistan: Evidence from textile and logistics industries. Social Sciences, 7(12), 246. https://doi.org/10.3390/socsci7120246   DOI
13 Justis, R. Y., & Kreigsmann, B. (1979). The feasibility study as a tool for venture analysis. Journal of Small Business Management, 17(1), 35-42.
14 Le, M. T., & Le, D. N. T. (2020). Developing Traditional Handcraft Villages: The Determinants of Lending Decision from Binh Duong Province's Banks in Vietnam. Journal of Asian Finance, Economics, and Business, 7(2), 151-156. https://doi.org/10.13106/jafeb.2020.vol7.no2.151   DOI
15 King, A. M. (2011). Internal control of fixed assets: a controller and auditor's guide (Vol. 564). Hoboken, NJ: John Wiley & Sons.
16 Kothari, V. (2006). Securitization: the financial instrument of the future (Vol. 385). Hoboken, NJ: John Wiley & Sons.
17 Lalli, W. R. (2012). Handbook of Budgeting (Vol. 562). Hoboken, NJ: John Wiley & Sons.
18 Levin, M. A., & Kalal, T. T. (2003). Improving product reliability: strategies and implementation (Vol. 1). Hoboken, NJ: John Wiley & Sons.
19 MacCallum, R. C., Widaman, K. F., Zhang, S., & Hong, S. (1999). Sample size in factor analysis. Psychological Methods, 4(1), 84-99. https://doi.org/10.1037/1082-989X.4.1.84   DOI
20 Majumdar, R. (2014). The determinants of indebtedness of unlisted manufacturing firms in India. Management Research Review, 37(9), 833-854. https://doi.org/10.1108/MRR-09-2012-0193   DOI
21 Manase, D. (2015). Public Sector Property Asset Management. Hoboken, NJ: Wiley Online Library.
22 Menkhoff, L., Neuberger, D., & Rungruxsirivorn, O. (2012). Collateral and its substitutes in emerging markets' lending. Journal of Banking & Finance, 36(3), 817-834.   DOI
23 Merna, T., & Al-Thani, F. F. (2011). Corporate risk management. Hoboken, NJ: John Wiley & Sons.
24 Araujo, G., & Hambur, J. (2018). Which Firms Get Credit? Evidence from Firm-level Data. Reserve Bank of Australia: Bulletin-December Quarter 2018. Retrieved April 1, 2020 from: https://www.rba.gov.au/publications/bulletin/2018/dec/which-firms-get-credit-evidence-from-firm-level-data.html
25 Monetary Policy Strategy Division at Bank of Thailand. (2019). Credit Conditions Report. Retrieved December 15, 2019 from: https://www.bot.or.th/English/MonetaryPolicy/EconomicConditions/Pages/CreditCondition.aspx [in Thai]
26 Nguyen, D. D., & Nguyen, A. H. (2020). The Impact of Cash Flow Statement on Lending Decision of Commercial Banks: Evidence from Vietnam. Journal of Asian Finance, Economics, and Business, 7(6), 85-93. https://doi.org/10.13106/jafeb.2020.vol7.no6.085   DOI
27 Nguyen, S., & Wolfe, S. (2016). Determinants of successful access to bank loans by Vietnamese SMEs: new evidence from the red river delta. The Journal of Internet Banking and Commerce. 21(1), 1-23.
28 Abrahams, C. R., & Zhang, M. (2009). Credit risk assessment: the new lending system for borrowers, lenders, and investors (Vol. 22). Hoboken, NJ: John Wiley & Sons.
29 Amacha, E., & Dastane, O. (2017). Sustainability practices as determinants of financial performance: A Case of Malaysian Corporations. Journal of Asian Finance, Economics and Business, 4(2), 55-68. http://dx.doi.org/10.13106/jafeb.2017.vol4.no2.55   DOI
30 Anderson, G., Bahaj, S., Chavaz, M., Foulis, A., & Pinter, G. (2018). Lending relationships and the collateral channel. Bank of England Working Paper No. 768. Retrieved April 1, 2020 from: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3287212
31 Arbuckle, J. L. (2011). IBM SPSS Amos 20 user's guide. Chicago, IL: Amos Development Corporation, SPSS Inc.
32 Office of the National Economic and Social Development Council. (2019). Gross Domestic Product Chain Volume Measures. All tables QGDP (Download Excel File). Retrieved December 15, 2019 from: https://www.nesdc.go.th/main.php?filename=qgdp_page [in Thai]
33 Palepu, K. G., & Healy, P. M. (2008). Business Analysis & Valuation: Using Financial Statements (4th ed.). Mason, OH: Thomson Higher Education.
34 Porter, M. E., & Kramer, M. R. (2011). The Big Idea: Creating Shared Value. How to reinvent capitalism-and unleash a wave of innovation and growth. Harvard Business Review, 89(1-2). https://hbr.org/2011/01/the-big-idea-creating-shared-value
35 Ramli, N. A., Latan, H., & Solovida, G. T. (2019). Determinants of capital structure and firm financial performance-A PLS-SEM approach: Evidence from Malaysia and Indonesia. The Quarterly Review of Economics and Finance, 71, 148-160.   DOI
36 Rose, P., & Hudgins, S. (2013). Bank Management & Financial Services (9th ed.). Singapore: McGraw-Hill.
37 Ross, S. A., Westerfield, R., & Jordan, B. D. (2010). Fundamentals of corporate finance. New- Delhi, India: Tata McGraw-Hill Education.
38 Salvendy, G. (2001). Handbook of industrial engineering: technology and operations management. Hoboken, NJ: John Wiley & Sons.
39 Trinh, T. H., & Phuong, N. T. (2016). Effects of financial crisis on capital structure of listed firms in Vietnam. International Journal of Financial Research, 7(1), 66-74.
40 Baker, H. K., & Anderson, R. (Eds.). (2010). Corporate governance: A synthesis of theory, research, and practice (Vol. 8). Hoboken, NJ: John Wiley & Sons.
41 Bank of Thailand. (2019). NPLs and Loans Outstanding. Retrieved December 15, 2019 from: https://www.bot.or.th/English/Statistics/FinancialInstitutions/Pages/StatNPLsOutstanding.aspx [in Thai]
42 Bassett, W. F., Chosak, M. B., Driscoll, J. C., & Zakrajsek, E. (2014). Changes in bank lending standards and the macroeconomy. Journal of Monetary Economics, 62, 23-40.   DOI
43 Bragg, S. M. (2011). Inventory best practices. Hoboken, NJ: Wiley Online Library.
44 Belvedere, V., & Grando, A. (2017). Sustainable operations and supply chain management. Hoboken, NJ: John Wiley & Sons.
45 Bond-Barnard, T. J., Fletcher, L., & Steyn, H. (2018). Linking trust and collaboration in project teams to project management success. International Journal of Project Management, 26(8), 821-829. doi: 10.1016/j.ijproman.2007.11.004.   DOI
46 Boobier, T. (2018). Advanced Analytics and AI: impact, implementation, and the future of work. Hoboken, NJ: John Wiley & Sons.
47 Bragg, S. M. (2013). Accounting best practices. Hoboken, NJ: John Wiley & Sons.
48 Bragg, S. M., & Burton, E. (2006). Accounting and finance for your small business. Hoboken, NJ: John Wiley & Sons.
49 Brigham, E. F., & Ehrhardt, M. C. (2013). Financial management: Theory & practice. Boston, MA: Cengage Learning.
50 Burtonshaw-Gunn, S. (2009). The essential management toolbox: Tools, models and notes for managers and consultants. Hoboken, NJ: John Wiley & Sons.
51 Channon, D. F., & Caldart, A. A. (2015). McKinsey 7S model. Wiley Encyclopedia of Management, Volume 12. Strategic Management. https://doi.org/10.1002/9781118785317.weom120005
52 Chipeta, C., & Deressa, C. (2016). Firm and country specific determinants of capital structure in Sub Saharan Africa. International Journal of Emerging Markets, 11(4), 649-673. https://doi.org/10.1108/IJoEM-04-2015-0082   DOI
53 Chishti, S., & Barberis, J. (2016). The FinTech book: the financial technology handbook for investors, entrepreneurs and visionaries. Hoboken, NJ: John Wiley & Sons.
54 Comrey, A. L., & Lee, H. B. (2013). A first course in factor analysis. London, UK: Psychology Press.