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Quality of Accounting Information, Executives’ Background and Loans of Small and Medium-Sized Enterprises

Received: 7 November 2018     Published: 8 November 2018
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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.

Published in International Journal of Economics, Finance and Management Sciences (Volume 6, Issue 5)
DOI 10.11648/j.ijefm.20180605.13
Page(s) 216-223
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

SMEs, Quality of Accounting Information, Executives’ Background, Credit Availability, Credit Term Structure

References
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Cite This Article
  • APA Style

    Hu Guohui, Zheng Meimei, Zhao Le. (2018). Quality of Accounting Information, Executives’ Background and Loans of Small and Medium-Sized Enterprises. International Journal of Economics, Finance and Management Sciences, 6(5), 216-223. https://doi.org/10.11648/j.ijefm.20180605.13

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    ACS Style

    Hu Guohui; Zheng Meimei; Zhao Le. Quality of Accounting Information, Executives’ Background and Loans of Small and Medium-Sized Enterprises. Int. J. Econ. Finance Manag. Sci. 2018, 6(5), 216-223. doi: 10.11648/j.ijefm.20180605.13

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    AMA Style

    Hu Guohui, Zheng Meimei, Zhao Le. Quality of Accounting Information, Executives’ Background and Loans of Small and Medium-Sized Enterprises. Int J Econ Finance Manag Sci. 2018;6(5):216-223. doi: 10.11648/j.ijefm.20180605.13

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  • @article{10.11648/j.ijefm.20180605.13,
      author = {Hu Guohui and Zheng Meimei and Zhao Le},
      title = {Quality of Accounting Information, Executives’ Background and Loans of Small and Medium-Sized Enterprises},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {6},
      number = {5},
      pages = {216-223},
      doi = {10.11648/j.ijefm.20180605.13},
      url = {https://doi.org/10.11648/j.ijefm.20180605.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20180605.13},
      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.},
     year = {2018}
    }
    

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  • TY  - JOUR
    T1  - Quality of Accounting Information, Executives’ Background and Loans of Small and Medium-Sized Enterprises
    AU  - Hu Guohui
    AU  - Zheng Meimei
    AU  - Zhao Le
    Y1  - 2018/11/08
    PY  - 2018
    N1  - https://doi.org/10.11648/j.ijefm.20180605.13
    DO  - 10.11648/j.ijefm.20180605.13
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 216
    EP  - 223
    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20180605.13
    AB  - 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.
    VL  - 6
    IS  - 5
    ER  - 

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Author Information
  • School of Economics, Wuhan University of Technology, Wuhan, China

  • School of Economics, Wuhan University of Technology, Wuhan, China

  • School of Economics, Wuhan University of Technology, Wuhan, China

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