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Information Availability, Information Quality and the Financial Structure of Belgian SME's

Author

Listed:
  • Van Campenhout, Geert

    (Hogeschool-Universiteit Brussel (HUB), Belgium)

  • Van Caneghem, Tom

    (Hogeschool-Universiteit Brussel (HUB), Belgium)

Abstract

In this paper we test whether the amount and/or quality of financial statement information affect the financial structure of Small and Medium Enterprises (SMEs). We explore this issue for Belgian SMEs because there are important differences in disclosure and audit requirements among them. Consistent with the traditional view that asymmetric or incomplete information restricts access to external funds, our results indicate that both the amount and the quality of financial statement information are positively related to SME leverage. In addition, we find that leverage is positively related to asset structure, growth (prospects) and median industry leverage; and negatively related to firm age and profitability.

Suggested Citation

  • Van Campenhout, Geert & Van Caneghem, Tom, 2009. "Information Availability, Information Quality and the Financial Structure of Belgian SME's," Working Papers 2009/27, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    • Handle: RePEc:hub:wpecon:200927
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    References listed on IDEAS

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    Cited by:

    1. Nadia Albu & Catalin Nicolae Albu, 2012. "Strategies For And Implications Of The Ifrs For Smes Implementation In Emerging Economies," Post-Print hal-00936564, HAL.

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    More about this item

    Keywords

    financial structure; leverage; SME; information asymmetry; financial statements; external audit;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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