do sme match their assets and liabilities
TRANSCRIPT
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DO SMALL AND MEDIUM
ENTERPRISES MATCH THEIR ASSETSAND LIABILITIES?
EVIDENCE FROM PORTUGAL
Journal ReviewAccounting Theory
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DO SMALL AND MEDIUM
ENTERPRISES MATCH THEIR ASSETS
AND LIABILITIES?
EVIDENCE FROM PORTUGAL
TEORI AKUNTANSI
KELOMPOK III
Afip Agrianto 123121003Audit W PradanaAris Aviantara 123121013
Cittanindya Andreyanto 123121019Ganesa Kusbandana 123120045Mas Nur MukminSamuel Marpaung 123121062Sukma Bayu Setiawan 123121070
Widya Febriyari Anita 123121084
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ABSTRACT
For SMEs various type of debt are notidentical.
Asset and liability sides of the balance sheetare interrelated.
Short-term and long-term funding sourcesare used to purchase various assets.
Reject independence between two sides ofbalance sheet
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INTRODUCTION
Interdependence between asset and liabilitymay not be so important for largecorporation, but it has a major impact for
SMEs (project size, riskiness, and timehorizon)
SMEs match their specific assets with specificliabilities.
1416 number of population (Portugueseindustrial SMEs over the years 1990-2000) ,use purposive sampling technique.
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LITERATURE REVEIW
Asymmetric Information
Banking Relationship for SMEs
Assets Affects Liabilities Two Sides of The Balance Sheet are Not
Independent
Investing Decision is Not Separate From TheFinancing Decision for Most Assets orProjects
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HYPOTHESIS
Each asset has its own primary and secondarysources of funding and that different assetshave different capital structures
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DATA AND METHODOLOGY
Primary data source is the Bank of PortugalStatistical Departments database.
Sample Criteria:
Manufacturing firms from the period 1990-2000 with more than 100 employees for alleast one year.
Firms with negative net worth and less than
three continuous data years are not includedin the sample
Deleted companies with observations layingin either tail (0,5%) of the distribution
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DATA AND METHODOLOGY
6 industry groups: Food and drinks, Textilesand Clothes, wood and paper past, chemicalproducts, heavy industry, and machinery andequipment.
Only 271 of 1416 total firms included in thesample have data for all 10 years
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Sources and Uses of Funds for
Portuguese Firms
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Sources and Uses of Funds for
Portuguese Firms
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Sources of Funds
Internal Equity
Cheap Trade Credits
Expensive Trade Credits Bank Loans
Other non-current liabilities (Leasing)
Other short-term Debt
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Uses of Funds
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Classifying Trade Credits
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RESULT
The Simultaneous Equation Model
Test for Independence
Funding for Individual Assets
h i l i
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The Simultaneous Equation
Model
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Test for Independence
The definition of independence for eachsource of debt rejected
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Funding for Individual
Assets Investments (Internal equity 18%, long-term
bank loans 61%)
Intangible Assets (asymmetric information)
Tangible Assets (asymmetric information)
Financing for Liquid assets (Internal equity 39%,short-term other loans 15%)
Financing for
Debtors/AR(non-current liabilities36%)
Inventories (cheap trade credits 14%, expensivetrade credits 20%)
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CONCLUSION
Asset and liability sides of the balance sheetare interrelated for SMEs Portuguese firms.
Firms match specific assets with a spesificliabilities