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

Geert Van Campenhout and Tom Van Caneghem ()
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Geert Van Campenhout: Hogeschool-Universiteit Brussel (HUB), Belgium
Tom Van Caneghem: Hogeschool-Universiteit Brussel (HUB), Belgium

No 2009/27, Working Papers from Hogeschool-Universiteit Brussel, Faculteit Economie en Management

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.

Keywords: financial structure; leverage; SME; information asymmetry; financial statements; external audit (search for similar items in EconPapers)
JEL-codes: G32 M41 M42 (search for similar items in EconPapers)
Pages: 23 page
Date: 2009-10
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Citations: View citations in EconPapers (1)

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