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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