Accrual accounting and access to external funds: Evidence from small businesses

IF 1.2 Q3 BUSINESS, FINANCE

Advances in Accounting Pub Date : 2024-11-20 DOI:10.1016/j.adiac.2024.100786

Philip Keejae Hong , Kyonghee Kim , Sukesh Patro , Kyunghwa Yu

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引用次数: 0

Abstract

This study explores how the use of accrual accounting, as opposed to cash accounting, is related to small businesses' access to external funds and the type of borrowing relationships they have. The findings show that the use of accrual accounting is associated with better access to lines of credit and trade credit, which are important sources of external financing for small businesses. The use of accrual accounting is also positively associated with larger borrowing amounts, more favorable borrowing terms, the establishment of more credit relationships, and with more distant financial institutions. Likewise, accrual accounting is associated with shorter borrowing relationships and less reliance on personal contact with financial institutions. Overall, this study demonstrates a significant association between the use of accrual accounting and improved access to external finance for small businesses, suggesting that the informational limitations of cash accounting may be related to greater constraints in accessing external funding.

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权责发生制会计与外部资金的获取：来自小型企业的证据

本研究探讨了相对于收付实现制会计而言，权责发生制会计的使用与小企业获取外部资金的途径及其借贷关系类型之间的关系。研究结果表明，使用权责发生制会计与更好地获得信贷额度和贸易信贷有关，而这是小企业外部融资的重要来源。使用权责发生制会计还与借款金额更大、借款条件更优惠、建立更多信贷关系以及与更远的金融机构有正相关。同样，权责发生制会计也与较短的借贷关系和较少依赖与金融机构的个人联系有关。总之，这项研究表明，使用权责发生制会计与小企业获得外部融资的机会增加之间存在显著联系，这表明现金会计的信息局限性可能与获得外部资金的更大限制有关。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Advances in Accounting BUSINESS, FINANCE-

CiteScore

2.50

自引率

6.20%

发文量

期刊介绍： Advances in Accounting, incorporating Advances in International Accounting continues to provide an important international forum for discourse among and between academic and practicing accountants on the issues of significance. Emphasis continues to be placed on original commentary, critical analysis and creative research.