Managers’ loss aversion and firm debt financing: Some insights from Vietnamese SMEs

Huong Trang Kim and Quang Nguyen

Finance Research Letters, 2022, vol. 44, issue C

Abstract: This study aims to examine whether managers' loss aversion has significant impact on debt financing behavior of SMEs. For this purpose, we carried out a lab-in-the-field experiment with a sample of top managers from 320 textile and garment SMEs in Vietnam. We find that SMEs led by more loss-averse managers are less likely to access domestic debt, and have a significantly lower level of foreign debt. Notably, we observe that loss aversion exerts a stronger effect on domestic debt than on foreign debt financing behavior.

Keywords: Loss aversion; Debt financing; Managers; SMEs; Experiment (search for similar items in EconPapers)
JEL-codes: C93 D22 M50 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612321001276
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:44:y:2022:i:c:s1544612321001276

DOI: 10.1016/j.frl.2021.102046

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().