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Are the cultural accounting values a relevant issue for the SMEs’ financing options?

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  • Fabio Albuquerque

    (Instituto Politécnico de Lisboa, Portugal)

  • Joaquín Texeira Quirós

    (Universidade Autonoma de Lisboa, Portugal)

  • Joaquín Rosário Justino

    (Instituto Politécnico de Lisboa, Portugal)

Abstract

This paper aims to examine the financing options of the managers/owners of SMEs (small and medium-sized companies) from a point of view that incorporates cultural values, namely, conservatism and secrecy. Data were collected with the use of a questionnaire conducted for managers/owners of a sample of 1629 Portuguese SMEs, and with the use of accounting and financial information from the period 2009 to 2011. 438 managers/owners provided valid answers, corresponding to a response rate of 27%. Using multivariate regression techniques as a basis, the results showed that a significant number of managers/owners supported the negative relationship between conservatism/secrecy and the business financing options associated with a higher risk (debts with costs). The results also showed that a more significant number of managers/owners of national SMEs choose sources of financing in light of the pecking order theory.

Suggested Citation

  • Fabio Albuquerque & Joaquín Texeira Quirós & Joaquín Rosário Justino, 2017. "Are the cultural accounting values a relevant issue for the SMEs’ financing options?," Contaduría y Administración, Accounting and Management, vol. 62(1), pages 279-298, Enero-Mar.
    • Handle: RePEc:nax:conyad:v:62:y:2017:i:1:p:279-298
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    References listed on IDEAS

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    More about this item

    Keywords

    Conservatism; Financing; Secrecy; SMEs;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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