Volume 6, Issue 5, October 2018, Page: 216-223
Quality of Accounting Information, Executives’ Background and Loans of Small and Medium-Sized Enterprises
Hu Guohui, School of Economics, Wuhan University of Technology, Wuhan, China
Zheng Meimei, School of Economics, Wuhan University of Technology, Wuhan, China
Zhao Le, School of Economics, Wuhan University of Technology, Wuhan, China
Received: Nov. 7, 2018;       Published: Nov. 8, 2018
DOI: 10.11648/j.ijefm.20180605.13      View  157      Downloads  15
Abstract
Small and medium-sized enterprises (SMEs) in China are currently still facing serious lending constraints, especially long-term loan constraints. This paper empirically studies on how the accounting information quality and executives’ background of SMEs influence their credit availability and loan term structures. We use panel data from 2010 to 2015 of Chines SMEs financial report database, matched with the executive characteristic database. The findings suggest that with better accounting information quality or the executives’ financial or political background, SMEs’ short-term credit availability can be improved. Furthermore, the impact of executives’ financial background is the largest. As for the long-term credit availability, the quality of accounting information plays a more important role than the executives’ background. In addition, the interaction between quality of accounting information and executives’ background on SMEs’ credit availability varies in different terms of loans, showing supplementary effect for short-term loans and substitute effect for long-term loans.
Keywords
SMEs, Quality of Accounting Information, Executives’ Background, Credit Availability, Credit Term Structure
To cite this article
Hu Guohui, Zheng Meimei, Zhao Le, Quality of Accounting Information, Executives’ Background and Loans of Small and Medium-Sized Enterprises, International Journal of Economics, Finance and Management Sciences. Vol. 6, No. 5, 2018, pp. 216-223. doi: 10.11648/j.ijefm.20180605.13
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