Open AccessQuality Of Financial Statements And Its Effects On Received Credits For Small Medium Enterprise (SME’s) Indonesia
Author(s) -
Inayah Adi Sari,
Dien Noviany Rahmatika,
Aminul Fajri,
Ibnu Muttaqin
Publication year - 2020
Publication title -
european journal of business and management research
Language(s) - English
Resource type - Journals
ISSN - 2507-1076
DOI - 10.24018/ejbmr.2020.5.1.204
Subject(s) - business , quality (philosophy) , small and medium sized enterprises , affect (linguistics) , sample (material) , finance , relevance (law) , financial ratio , accounting , philosophy , linguistics , chemistry , epistemology , chromatography , political science , law
This research examines the effect of the quality of financial statements, age, guarantees, and terms of SME's on the level of credit received. This study uses primary data by distributing questionnaires to SME business respondents in Indonesia. The sample used was 90 respondents. The results of this study indicate that the quality of SME financial statements does not affect the amount of credit received, this is due to the still low quality of SME financial reports so that banks still doubt the relevance and reliability of the quality of their financial statements. While the age, colateral and term variables affect the amount of credit received by SMEs.