EconPapers    
Economics at your fingertips  
 

Effect of perceived default risk and accounting information quality on the decision to grant credit to SMEs

Estefanía Palazuelos (), Ángel Herrero Crespo () and Javier Montoya del Corte ()
Additional contact information
Estefanía Palazuelos: University of Cantabria
Ángel Herrero Crespo: University of Cantabria
Javier Montoya del Corte: University of Cantabria

Risk Management, 2018, vol. 20, issue 2, 121-141

Abstract: Abstract The present study analyses the influence that perceived default risk and accounting information quality have on the process of credit granting to small- and medium-sized enterprises (SMEs). Empirical evidence was obtained from a survey of 471 bank loan officers in Spain, in which they were asked to answer questions relating to audited and not-audited firms. Through a structural equations modeling (SEM) approach, the results confirm that the likelihood that the loan officers are more willing to provide access to credit to SMEs, and to do so in more favourable conditions, is negatively influenced by perceived default risk and positively influenced by the general perception about accounting information quality. Besides, we find that information quality is an antecedent of perceived risk, so that the latter becomes the central element of the research model. Additionally, the perceptions of the decision-makers regarding all the analysed variables are better for the audited SMEs than for the unaudited ones.

Keywords: Perceived risk; Information quality; Credit access; Credit conditions; External audit; SMEs (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1057/s41283-017-0030-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:pal:risman:v:20:y:2018:i:2:d:10.1057_s41283-017-0030-z

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41283

Access Statistics for this article

Risk Management is currently edited by Igor Loncarski

More articles in Risk Management from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-01-08
Handle: RePEc:pal:risman:v:20:y:2018:i:2:d:10.1057_s41283-017-0030-z