Information Asymmetry, Relationship Banking and Financing Costs of SME's

Fidrmuc, Jarko; Schreiber, Philipp; Siddiqui, Martin

doi:10.2139/ssrn.2565350

Cited by 3 publications

(2 citation statements)

References 51 publications

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“…Since the firm-level survey data for Singapore and Brunei were not available, the data used consists of 12,165 firms across eight ASEAN countries (Laos, Camb odia, Indonesia, Malaysia, Myanmar, the Philippines, Thailand, and Vietnam). The surveyed countries and years are different : Laos (2012, 2016, 2018), Cambodia (2016), Indonesia (2010, 2015, Malaysia (2015), Myanmar (2014Myanmar ( , 2016, the Philippines (2009Philippines ( , 2015, Thailand (2016), and Vietnam (2010, 2015. Since the data includes both SMEs and large enterprises, the study separates these based on the BEEPS business classification.…”

Section: Datamentioning

confidence: 99%

Information disclosure and SME financing: A study of firms in the ASEAN region

Thein,

Niigata,

Inaba

2023

102

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This study investigates the impact of information and communication technology (ICT) and audited financial statements on small and medium enterprise (SME) financing, as well as their influence on SMEs’ collateral issues in acquiring bank loans, based on the information asymmetry theory. The study applies the ordinary least squares (OLS) test, the two-stage least squares test, and the probit regression model for the analysis. The sample consists of 12,165 firms in eight ASEAN countries between 2009 and 2018. The data used in the analysis was sourced from the Business Environment and Enterprise Performance Surveys (BEEPS) provided by the World Bank. The results reveal that financial statements and ICT have a positive relationship with SMEs’ bank credit accessibility and a negative relationship with collateral issues faced by SMEs in accessing bank loans. Thus, SMEs that use financial statements and ICT have more financing opportunities than those that don’t. The impacts of financial statements and ICT are stronger in counties with a more developed financial infrastructure. Additionally, this study found that economic development enables SMEs to access cheaper finance and mitigate collateral problems. These outcomes contribute to the enhancement of SME financing and promote SMEs’ information disclosure in the ASEAN region. Promoting SMEs’ information disclosure is also crucial for banks in mitigating bad debt. Therefore, encouraging and supporting SMEs to adopt financial statements and ICT can be beneficial to both SMEs and banks.

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Section: Datamentioning

confidence: 99%

Information disclosure and SME financing: A study of firms in the ASEAN region

Thein,

Niigata,

Inaba

2023

102

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“…The information asymmetry refers to many aspects. Some authors have discussed the relationship between intangible assets, asymmetric information, relationship banking, financing costs of SMEs, and the usefulness of quarterly reports for investors in times of uncertainty such as the COVID-19 pandemic ( 22 , 23 ). The literature most often refers to the asymmetry in connection to the features of the product.…”

Section: Literature Reviewmentioning

confidence: 99%

Is Information Asymmetry a Disruptive Factor in Food Consumer Behavior During the COVID Pandemic?

et al. 2022

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Today, food quality and safety, on the one hand, as well as increasing the level of information of consumers with direct implications on their food preferences, on the other hand, are highly debated topics in both national and international literature. The lack of consumers’ knowledge of information on food safety could make consumers purchase unsafe food. In the event of the existence of this kind of information, the consumption would be a safer one. Our research aimed to understand the means of adjusting the food offered to the request manifested by young and educated people and the impact of the information asymmetry on the consumers’ behavior. The main objectives of the study focus on exploring the nature of the informational asymmetry and the extent to which it usually affects the consumers’ perception and on identifying the prevalent socioeconomic factors that influence the consumers’ behavior regarding their perception of the quality of the food products and quantifying the impact of the information asymmetry on consumers’ behavior. In this study, a questionnaire survey among 529 young and educated people was used to design a cumulative analysis in order to allow the forecast based on a future trend of the food policies in relation to the change in the consumers’ behavior induced by the informational asymmetry. This analysis was segmented into impact sections that delineate the weight of the generating asymmetry factors from the weight of the factors with resistance to this phenomenon. The results of the survey led both to the identification of a quantification model of the information asymmetry that manifests itself within the relationship between the producer and the consumer and to the identification of a typology of informational asymmetry which manifests itself differently depending on the features of the food products. The study can be useful for those entities that want to identify the changes in the typology of consumption according to certain criteria in order to correlate their offer with the consumers’ requirements, as well as for the national or regional institutional bodies with a role in developing food policies adapted to these requirements.

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Understanding the consequences of diversification on financial stability

Banwo

Harrald

Medda

2018

J Econ Interact Coord

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In this paper, we study the consequences of diversification on financial stability and social welfare using an agent based model that couples the real economy and a financial system. We validate the model against its ability to reproduce several stylized facts reported in real economies. We find that the risk of an isolated bank failure (i.e. idiosyncratic risk) is decreasing with diversification. In contrast, the probability of joint failures (i.e. systemic risk) is increasing with diversification which results in more downturns in the real sector. Additionally, we find that the system displays a "robust yet fragile" behaviour particularly for low diversification. Moreover, we study the impact of introducing preferential attachment into the lending relationships between banks and firms. Finally, we show that a regulatory policy that promotes bank-firm credit transactions that reduce similarity between banks can improve financial stability whilst permitting diversification.

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Information Asymmetry, Relationship Banking and Financing Costs of SME's

Cited by 3 publications

References 51 publications

Information disclosure and SME financing: A study of firms in the ASEAN region

Information disclosure and SME financing: A study of firms in the ASEAN region

Is Information Asymmetry a Disruptive Factor in Food Consumer Behavior During the COVID Pandemic?

Understanding the consequences of diversification on financial stability

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