Effect of perceived default risk and accounting information quality on the decision to grant credit to SMEs

Abstract

The present study analyses the influence that perceived default risk and accounting information quality have on the process of credit granting to SMEs. Empirical evidence was obtained from a survey of 471 bank loan officers in Spain, in which they were asked to answer questions relating to audited and not-audited firms. Through a Structural Equations Modeling (SEM) approach, the results confirm that the likelihood that the loan officers are more willing to provide access to credit to SMEs, and to do so in more favourable conditions, is negatively influenced by perceived default risk and positively influenced by the general perception about accounting information quality. Besides, we find that information quality is an antecedent of perceived risk, so that the latter becomes the central element of the research model. Additionally, the perceptions of the decision-makers regarding all the analysed variables are better for the audited SMEs than for the unaudited ones.

Factors affecting access to finance for small and medium-sized agricultural enterprises in Vietnam

“…Effective risk management practices and reduced risk perception among SMEs significantly contribute to improved financial literacy and education (Hillary, 2017). This emphasizes the need for tailored risk mitigation strategies, particularly in agriculture, to enhance SMEs' financial capabilities and decision-making (Palazuelos, Herrero Crespo, & Montoya del Corte, 2018).…”

Studi Eksperimen Tentang Pengaruh Kinerja Lingkungan dan Sosial Terhadap Penilaian Kredit Perbankan

“…Sejauh mana informasi akuntansi mempengaruhi keputusan pinjaman kredit menjadi isu penting dari waktu ke waktu. Ada banyak pertimbangan yang digunakan oleh loan oficers dalam menilai suatu proposal kredit komersil, seperti ukuran perusahaan calon debitur, sejarah hutang sebelumnya, industri dan lain sebagainya (Danos et al, 1989;Palazuelos et al, 2017). Tetapi fakta bahwa para bankers, sebagai tenaga professional, selalu berkomitmen melakukan proses analisis laporan keuangan dari perusahaan calon debitur untuk memastikan bahwa calon debitur telah dievaluasi dari segi kemampuan keuangan untuk melunasi pinjaman tersebut.…”