The mitigation of information asymmetries: A research on the effect of financial advisory on SME success in bank financing

Faber, T.J. (2013) The mitigation of information asymmetries: A research on the effect of financial advisory on SME success in bank financing.

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Abstract:An increasing amount of Dutch small and medium-sized Enterprises (SMEs) is having trouble with acquiring bank finance. Bank finance is crucial to SMEs to seize new market opportunities and anticipate on external stress. There is much debate in the literature about the impact of SME advisers in general and on financial subjects. The role of business advisers is to mitigate negative effects of information asymmetry. This paper contributes by testing the relationship between the use of advice and the propensity of success in bank finance. Also different sources of formal advice are tested for their influence on success in bank financing. A logistic regression analysis from a sample of 44 respondents found no significant relationship between the use of advice from (individual) formal sources and success in bank finance. The academic contribution of this thesis constitutes of recent acquired data that reject the statistical significance of the use of advice and success in bank finance. The practical contribution is provided by the idea that entrepreneurs do not always benefit from the use of external advisers.
Item Type:Essay (Master)
Clients:
Claassen, Moolenbeek & Partners, Hengelo(O), the Netherlands
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/63655
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