M.A. Thesis:

Cash holding٫ trade credit and access to short-term bank finance

The present paper seeks to investigate the effect of retaining cash and commercial credits on short-term bank financing of the organizations registered to Tehran’s securities and exchange organization. The target society is the organizations registered to Tehran’s securities and exchange organization, from 2009 to 2015. Statistical sampling was through screening of 142 organizations. These organizations had some features in common such as availability of their data and publishing their financial statements by securities and exchange organization. The results of the study showed that retaining cash and commercial credits has a negative and significant effect on short-term bank financing of the organizations registered to Tehran’s securities and exchange organization. In fact, according to hierarchical theory, management, internal sources of financing prefer to prefer foreign sources. Therefore, it tends to accumulate cash so that it can finance the company internally and do not go outside the company. Therefore, it tends to accumulate cash so that it can finance the company internally and do not go outside the company. Therefore, with increasing cash holdings, the amount of debt financing and, as a result, short-term bank debt will be avoided. In fact, it can be said that the level of cash holdings is a factor affecting the financing of companies ..

Keywords: retaining cash; commercial credit; access to short-term bank financing