Accountants as Sources of Business Advice for Small Firms

Abstract

The purpose of this article is to study the implication of financial liberalization to the heavy reliance of firms to the indirect finance in Japanese experience. In order to analyze the goal of this article, we start to examine the causes of the main bank system in Japan before and the prewar period. Then, this article discusses the impacts of financial liberalization to the to the heavy reliance on the indirect-financing for business firms in the light with Japan's financial market, particularly the main bank system. Finally, this article also discusses the implication of loose relationship of big firms and major banks (main bank system) to the recent financial condition in starting from the early of 1990s until now. This article discovered that financial liberalization, which started at the latter half of 1970s, has shaken the foundation of the main bank system. The major firms started to less dependent on the major banks and they issued the securities in domestic and international market. As a consequence, the SMBS still depend on the banks as their source of indirect financing. However, the competitiveness in the SMBS market turned to erode the bank profits that induced them to enter the risk activities, such as real estate. In addition, the bubble burst economy also triggered the boom in real estate. Naturally, as a nature of risk asset, loan to the real estate became the potential of bad loans that also was exacerbated the bubble burst in economy. Then, the financial crisis has revealed in 1990s.

Discouraged Advisees? The Influence of Gender, Ethnicity, and Education in the Use of Advice and Finance by UK SMEs

“…Gooderham et al (2004) built upon the importance of "quality, rather than the longevity," of the relationship between owner-managers and advisers (in this case accountants) in order to understand the extent to which accountants are used.…”

Factors Influencing Accounting Outsourcing Practices among SMEs in Pakistan Context: Transaction Cost Economics (TCE) and Resource-Based Views (RBV) Prospective

“…Previous studies confirm that SMEs involved in the outsource of management accounting functions to professional accountants in recent years (Kamyabi & Devi, 2011;Everaert et al, 2010Everaert et al, , 2007Jayabalan et al, 2009;Carey et al, 2006;Gooderham et al, 2004). Moreover, most research has been conducted in developed countries.…”

“…Thus, many previous studies confirm that SMEs prefers to outsource their accounting functions to an external professional accountant. In Belgium over two-third firms outsource accounting functions (Everaert et al, 2010), in Australia and UK majority of firms outsource accounting tasks (Carey et al, 2006), in Norway many firms are involved in outsourcing of accounting services support (Gooderham et al, 2004). However, in the previous literature, most of the studies on accounting outsourcing were done in the developed countries except from Malaysia by Jayabalan et al (2009) and latest in Iran by Kamyabi and Devi (2011).…”

“…TCE describes frequency, asset specificity and trust in accountant are essential components influencing accounting outsourcing decision (Everaert et al, 2010;Lammirmiaki, 2005;Spekle et al, 2007). Resource based view (RBV) theory has happened to a practical framework to describe why SMEs use external accountant services under competitive pressure (Gooderham et al, 2004). The transaction cost economics (TCE) primarily focus on governance (Mclvor, 2009).…”

“…Conversely, SMEs in emerging economics deal with increasing complexities and fail to perform due to internal resource gap (Kamyabi & Devi, 2011c). Moreover, smaller firms are less efficient than larger firms in resource allocation and utilization (Gooderham et al, 2004). Therefore, accounting information is particularly essential for SMEs better resource management (Nandan, 2010), reduce cost and create new opening for business growth (Mahmoodzadeh et al, 2009).…”