Journal of Accounting and Management Information Systems (JAMIS)


Does simplified accounting limit small and micro companies’ access to bank financing?

Vol. 16, Nr. 2/2017 ,   p340..359

Author(s):  
Halina Waniak-Michalak


Keywords:   SME; micro entities; bank financing; simplified accounting; Poland

Abstract:   Enterprises that use simplified accounting can provide less information to lenders, thereby possibly hampering risk analysis. In this paper I investigate whether simplified accounting is a barrier for Polish Small and Medium-sized Entities (SMEs) enterprises to access financing resources, or makes funding more expensive for them. Telephone interviews with managers of banks and a review of statistical data are used to show that simplified accounting methods may influence the cost of capital of Polish SMEs, but it does not create a barrier to accessing external sources of financing.

Download:   http://online-cig.ase.ro/jcig/art/16_2_6.pdf

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