This paper examines the impact of financial constraints on the development of Vietnamese firms driven by Total Factor Productivity (TFP) growth at the firm level. The effects of financial constraints by FCIf index on TFP growth of 97,860 firms are estimated by applying Dynamic Panel Data model over the period 2012-2017. The results show that there was a negative correlation between FCIf and labor productivity growth and TFP growth in all industries. While FCIf index is increased by 0.1, TFP growth of firms is reduced by 3.71%. The results also show that there was an inverse relationship between FCIf index, and the size of value added and assets of firms. Firms operating in manufacturing, wholesale and retail trade, and private firms face the biggest financial constraints.

This study aims to examine the effect of cash holding and external financing on investment-cash flow sensitivity. The sample in this research is the firm of non-finance which was listed on the Indonesia Stock Exchange over the period 2008-2017. The sample in this study was divided into categories of financial constraint to determine the influence of both variables more clearly on firms with different financial conditions. The research method used panel data regression by using fixed effect model to estimate investment-cash flow sensitivity. This study found that cash holding had a positive and significant effect on investment-cash flow sensitivity. Furthermore, external financing also had a positive and significant effect on investment cash flow sensitivity. The result of research refers that external financing is a substitute of internal funding to finance their investment; therefore, the companies have to manage finances well to their investment to enhance the value of the company and maximize shareholder wealth.

This paper examines the relationship between trade credit and bank loan during the financial crisis using annual data on Tunisian exporting companies over the period 2005- 2011. Results based on 2SLS regression have shown that trade credit and bank credit were simultaneously determined and maintained a complementary effect before 2008 financial crisis. On the other side, the substitution effect has been detected between the two sources of short term financing during 2008 financial crisis. Finally, companies rely more on bank loan after the financial crisis because bankers are able to cover financial need of their customers.