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

Hu Guohui; Zheng Meimei; Zhao Le

doi:doi:10.11648/j.ijefm.20180605.13

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

Hu Guohui, Zheng Meimei, Zhao Le

Published in International Journal of Economics, Finance and Management Sciences (Volume 6, Issue 5)

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

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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

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

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Plain Text BibTeX RIS

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

Copy | Download

@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}
}

Copy | Download

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  -

Copy | Download