Determinants of Short-Term Financing Among Islamic Savings Co-Operatives in Thailand
This research investigates the relationship between profitability, liquidity, and management preference and the use short-term modes of financing among Islamic savings co-operatives in Thailand. The results of this research will shed some light on whether profitability, liquidity and management p...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English English |
| Published: |
2003
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/8175/1/GSM%202003%205.pdf |
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| Summary: | This research investigates the relationship between profitability, liquidity, and
management preference and the use short-term modes of financing among Islamic
savings co-operatives in Thailand. The results of this research will shed some light
on whether profitability, liquidity and management preference are determinants of
short-term financing in the co-operatives.
Both descriptive statistics and regression analysis are used in this study. Descriptive
analysis is used to explain the relationship between short-term financing and
management preference. Regression analysis is applied to obtain the relation of
short-term financing to profitability and liquidity. Data used in descriptive analysis is
obtained via a questionnaire. Data on short-term financing, profitability, liquidity
and other two contributing factors i.e. solvency and activity is obtained from
secondary data mainly income statements, balance sheets and statements of cash flow. The raw data is transformed to financial ratios to represent profitability,
liquidity, solvency and activity management. Short-term financing is calculated from
the change of short-term financing over the period.
The results of the regression analysis show that the profitability, liquidity, and
activity management of the co-operatives are determinants of short-term financing in
the co-operatives. The results confirm opinions being expressed by most executive
board members and staff of the co-operatives who agreed, during the survey session,
that profitability and liquidity are the two main concerns for the co-operatives to rely
heavily on short-term modes of financing. The management of the co-operatives
agree somewhat that they prefer short-term financing. |
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