Journal or Book Title
Journal of Innovation Management
This paper examines factors that impact the frequency of financial statement preparation among a sample of 312 SMEs. Specifically, the study examines the relationship between how often financial statements are prepared and (1) whether the financial statements are used to make decisions and (2) owners’ confidence in the reliability of their financial statements. Financial statements provide important information that should be used to help guide decisions. The findings showed that the frequency of financial statement preparation was directly associated with whether the financial statements were used to make decisions and inversely associated with owners’ confidence in the reliability of their financial statements. Additionally, the results showed that the frequency of financial statement preparation was directly associated with gender and size of community in which the firm was located. The results should be useful for owners of SMEs and providers of services to SMEs to better understand which factors affect how often financial statements are prepared and to provide business development assistance.
This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Van Auken et al
Van Auken, Howard and Carraher, Shawn, "Influences on Frequency of Preparation of Financial Statements Among SMEs" (2013). Management Publications. 21.