Quantity and quality of information and SME financial structure

Caneghem, Tom Van; Campenhout, Geert Van

doi:10.1007/s11187-010-9306-3

Cited by 129 publications

(89 citation statements)

References 55 publications

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“…Within this field, Italian small and medium-sized companies represent a typical sample population for this kind of study (La Rocca et al, 2011;Giacosa, 2015) as they are widespread in the Italian economic context (Broccardo et al, 2016). There is a rich literature focused also on European SMEs (Lopez-Gracia and Romero- Martinez, 1997;Cardone and Cazorla, 2001;Van Caneghem and Campenhout, 2012) or individual European countries (Ocaña et al, 1994;Lopez-Gracia and Aybar, 2000;Aybar et al, 2001) using some financial variables for analysis (López-Gracia and Sogorb-Mira, 2008;Mac An Bhaird and Lucey, 2010;Degryse et al, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

Why small and medium-sized firms tend to make recourse to external debt: An investigation into an Italian sample

Mazzoleni¹,

Giacosa²,

Maria³

2017

Afr. J. Bus. Manage.

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The purpose of this research is to identify the determinants impacting companies' financial structure in SMEs belonging to different economic sectors. The research is due to the current situation which characterizes the banking system and the companies' environment. Within this context, both companies and stakeholders need to identify the determinants impacting these companies' financial structure in order to optimize their decisions in terms of short and medium-long term goals and internal/external sources. In a previous research, the frame work of this study has been presented in which some variables impacting companies' financial structure have been identified. Finally, our sample is composed of 12,175 Italian companies; 2% of them are bankrupt; 97% have external debts. The present research identifies the relationship between variables introduced by the literature on the level of indebtedness. In particular, the following variables have been analysed to assess their impact on suitable funding methods: The growth of the company, the attitude to repaying financial debts, the companies' financial situation, their age, size, intangible assets ratio, and economic sector. The present research has some interesting theoretical and practical implications, along with some limitations linked to the sample and research method.

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Section: Literature Reviewmentioning

confidence: 99%

Why small and medium-sized firms tend to make recourse to external debt: An investigation into an Italian sample

Mazzoleni¹,

Giacosa²,

Maria³

2017

Afr. J. Bus. Manage.

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“…1984;Brennan and Schwartz 1978;DeAngelo, Masulis 1980;Myers 1984;Myers, Majluf 1984]. Teoria hierarchii źródeł finansowania [Myers 1984;Myers, Majluf 1984] została uznana przez wielu badaczy jako odpowiednia do wyjaśnienia decyzji finansowych podejmowanych przez małe i średnie przedsiębiorstwa [Caneghem, Campenhout 2012;Cassar, Holmes 2003;Lopez-Gracia, Aybar-Arias 2000]. Założeniem teorii jest, iż menedżerowie (ew.…”

Section: Przegląd Literatury I Hipotezy Badawczeunclassified

The Importance of Debt on Innovation Financing in the Sector of Small and Medium Enterprises in Poland

Prędkiewicz¹

2016

Financial Sciences

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Streszczenie: Celem artykułu jest analiza, w jaki sposób innowacyjność przedsiębiorstw wpływa na skłonność do korzystania z form zadłużania się oraz sukces jego pozyskania. Badano, czy firmy deklarujące innowacyjność częściej poszukują długu niż firmy nieinnowacyjne oraz jaki jest wskaźnik sukcesu tych poszukiwań. W badaniach wykorzystano mikrodane pozyskane z Europejskiego Banku Centralnego i Komisji Europejskiej dotyczące Polski za lata 2008 i 2011 (łącznie 2094 ankiety) oraz posłużono się modelem probitowym binarnym i uporządkowanym. Na podstawie przeprowadzonych badań stwierdzono, że firmy deklarujące innowacyjność częściej zgłaszają zapotrzebowanie na dług (linie kredytowe, kredyty bankowe) niż nieinnowacyjne, a równocześnie w przypadku linii kredytowych prawdopodobieństwo pozyskania finansowania jest dla nich niższe. Badania zarówno zaprezentowane w artykule, jak i wcześniej przeprowadzone są przesłanką do poświęcenia większej uwagi instrumentom, które poprawiają dostęp do długu dla firm innowacyjnych, również dłużej funkcjonujących na rynku.Słowa kluczowe: innowacje, finansowanie, małe i średnie przedsiębiorstwa, dług, struktura kapitału.Summary: This aim of the paper is to analyze how companies innovativeness impacts the use of debt to finance the company activity in Poland. We investigated whether the company which declared itself as innovative looks more often for debt than non-innovative ones, and whether the success rate differs between those two groups. The study used microdata obtained from the European Central Bank and the European Commission concerning Poland in year 2008 and 2011 (2094 questionnaires). Binary and ordered probit model was employed in the studies. Based on the survey it was found that the companies which declared innovation more often sought debt (credit lines, bank loans) than non-innovative ones, while in the case of * Projekt został sfinansowany ze środków Narodowego Centrum Nauki przyznanych na podstawie decyzji numer DEC-2013/11/D/HS4/03941.

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“…Ortiz-Molina and Penas (2008) and Binks and Ennew (1996) studied credit restrictions for the SME sector in the U.S. and the U.K., respectively, both addressing the amounts and funding conditions (terms, prices), and both of them were associated with higher risks and also information asymmetry problems found in the studies by Van Caneghem and Van Campenhout (2012), too, when they examined Belgian companies. Moreover, these authors found evidence that both the quantity and quality of accounting information are associated with the capital structure of SMEs.…”

Section: Credit Small and Medium-sized Entities And Accounting Infomentioning

confidence: 99%

“…Credit restriction has been pointed out as one of the difficulties faced by SMEs (Carvalho & Abramovay, 2004;Ortiz-Molina & Penas, 2008;Binks & Ennew, 1996;Van Caneghem & Van Campenhout, 2012) and, thus, accounting, hitherto used solely for tax purposes, begins to shift the focus of its purpose not only to assist in business management, but mainly to bring transparency. So, it was found that a more reliable set of financial statements, more transparent, and closer to companies' reality can interfere with the bank credit granting decisions.…”

Section: Introductionmentioning

confidence: 99%

Adoção do Padrão Contábil Internacional nas Pequenas e Médias Empresas e seus Efeitos na Concessão de Crédito

Riva

Salotti

2015

Rev. contab. finanç.

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This research examines the relationship between the adoption of the international accounting standard by small and medium-sized entities in Brazil and the cost of credit granted by financial institutions. The literature about this subject discusses accounting regulation as a response to the existence of environments having information asymmetry and the Disclosure Theory studies the phenomenon of accounting disclosure, from the viewpoint of its causes and effects. The International Accounting Standards Board (IASB) suggests that an accounting standard with higher information quality tends to reduce the funding cost for small enterprises and, thus, this paper has as its main aim investigating whether the adoption of the international accounting standard has caused some effect on the cost of banking credit. The investigation was conducted through a theoretical and empirical approach, where the statistical analyses involved a sample of 179 enterprises subject to the Brazilian Technical PronouncementAccounting for Small and Medium-Sized Entities (CPC-SMEs), which underwent descriptive analysis, sample means testing, panel data analysis, and quantile regressions, with data from financial statements for three years (2009 to 2011). Evidence suggests a weak association between measures of the accounting information quality (disclosure and exposure of the adoption of the accounting standard based on the CPC) and the cost of banking credit for these enterprises. However, such evidence did not prove to be consistent over time and, furthermore, through regression analysis, the variables were not significant. So, it is possible to observe only a slight influence of accounting information in the sector under analysis, at least at this very first moment of changes in the accounting standards, on the cost of banking credit. Thus, this study contributes to examine the relationship between accounting information quality and the cost of banking credit among small and medium-sized entities.

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Quantity and quality of information and SME financial structure

Cited by 129 publications

References 55 publications

Why small and medium-sized firms tend to make recourse to external debt: An investigation into an Italian sample

Why small and medium-sized firms tend to make recourse to external debt: An investigation into an Italian sample

The Importance of Debt on Innovation Financing in the Sector of Small and Medium Enterprises in Poland

Adoção do Padrão Contábil Internacional nas Pequenas e Médias Empresas e seus Efeitos na Concessão de Crédito

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