Comparing Financial Debt Choices of Existing and New SMEs in Indian Manufacturing Sector

IF 2.5 Q2 ECONOMICS

Asia-Pacific Financial Markets Pub Date : 2022-10-14 DOI:10.1007/s10690-022-09382-8

KG Suresh, Akanksha Saxena, M. Srikanth

引用次数: 0

Abstract

The study examines the differences in financial debt choices of SME and Non-SME firms in India. Being SMEs, firms enjoy special grants and packages that non-SMEs firms do not, and very often, the SMEs do not want to let go of the SME status. This brings in the information asymmetry and agency problem among the market participants and this may result in differences in the debt choices of the firms. We found that the existing SMEs use more unsecured debt, the newly added SMEs use more long-term debt and secured debt reflecting firm-specific growth opportunities. This shows the difference in capital structure decisions of SMEs operated under different policy environments sourced because of the conflict of interests among the participants.

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印度制造业现有中小企业和新中小企业融资债务选择的比较

该研究考察了印度中小企业和非中小企业在金融债务选择上的差异。作为中小企业，中小企业享有非中小企业所没有的特别补助和福利，而且中小企业往往不愿意放弃中小企业的地位。这导致了市场参与者之间的信息不对称和代理问题，并可能导致企业债务选择的差异。我们发现，现有中小企业更多地使用无担保债务，新增加的中小企业更多地使用长期债务和有担保债务，这反映了企业特定的增长机会。这表明在不同政策环境下经营的中小企业由于参与者之间的利益冲突而导致资本结构决策的差异。

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

Asia-Pacific Financial Markets ECONOMICS-

CiteScore

3.00

自引率

0.00%

发文量

期刊介绍： The current remarkable growth in the Asia-Pacific financial markets is certain to continue. These markets are expected to play a further important role in the world capital markets for investment and risk management. In accordance with this development, Asia-Pacific Financial Markets (formerly Financial Engineering and the Japanese Markets), the official journal of the Japanese Association of Financial Econometrics and Engineering (JAFEE), is expected to provide an international forum for researchers and practitioners in academia, industry, and government, who engage in empirical and/or theoretical research into the financial markets. We invite submission of quality papers on all aspects of finance and financial engineering. Here we interpret the term ''financial engineering'' broadly enough to cover such topics as financial time series, portfolio analysis, global asset allocation, trading strategy for investment, optimization methods, macro monetary economic analysis and pricing models for various financial assets including derivatives We stress that purely theoretical papers, as well as empirical studies that use Asia-Pacific market data, are welcome. Officially cited as: Asia-Pac Financ Markets