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

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Author Info

  • Van Campenhout, Geert

    (Hogeschool-Universiteit Brussel (HUB), Belgium)

  • Van Caneghem, Tom

    ()
    (Hogeschool-Universiteit Brussel (HUB), Belgium)

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    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.

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    File URL: https://lirias.hubrussel.be/bitstream/123456789/2806/1/09HRP27.pdf
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    Bibliographic Info

    Paper provided by Hogeschool-Universiteit Brussel, Faculteit Economie en Management in its series Working Papers with number 2009/27.

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    Length: 23 page
    Date of creation: Oct 2009
    Date of revision:
    Handle: RePEc:hub:wpecon:200927

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    Web page: http://research.hubrussel.be
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    Related research

    Keywords: financial structure; leverage; SME; information asymmetry; financial statements; external audit;

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    References

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