Determinant Factors of the Quality of Financial Reports for Micro, Small and Medium Enterprises in Serang City and Their Implications for Financial Performance

Rudi Zulfikar, Kurniasih Dwi Astuti

Abstract


This study aims to examine the factors that influence the quality of financial statements in the Finance of Micro, Small and Medium Enterprises in Serang City and their Implications for Financial Performance. These factors are understanding of accounting, level of education, business age and owner experience. Meanwhile, financial performance uses the Return On Assets (ROA) indicator. Micro, Small and Medium Enterprises in Serang City used the sample for 2018 – 2022. The test tool used is SPSS V.22. The results prove that the owner's understanding of accounting and experience can improve the quality of MSME financial reports in Serang. While education level, company size, and business age have no effect. Another result positively influences the quality of financial reports on the Financial Performance of MSMEs in Serang City.


Keywords


Quality of Financial Statements; Accounting Understanding; Education Level; Business Age and Financial Performance

Full Text:

PDF

References


Brixiová, Z., Kangoye, T., & Yogo, TU (2020). Access to finance among small and medium-sized enterprises and job creation in Africa. Structural Change and Economic Dynamics, 55, 177-189.

Eller, R., Alford, P., Kallmünzer, A., & Peters, M. (2020). Antecedents, consequences, and challenges of small and medium-sized enterprise digitalization. Journal of Business Research, 112, 119-127.

Hernández, JPSI, Yañez-Araque, B., & Moreno-García, J. (2020). Moderating effect of firm size on the influence of corporate social responsibility in the economic performance of micro-, small- and medium-sized enterprises. Technological Forecasting and Social Change, 151, 119774.

Habran, Y., Matsugi, S., & Mouritsen, J. (2021). Mediating relations between financial and operational concerns when structural interdependencies are significant: The development of pseudo-micro-profit centres at Kitanihon. Management Accounting Research, 53, 100766.

Kaberia, SK, & Muathe, S. (2021). The effect of the Covid-19 pandemic on the performance of women-owned micro, small and medium enterprises in Kenya. Int'l J. Soc. sci. Studs. , 9, 7.

Liu, Y., Dilanchiev, A., Xu, K., & Hajiyeva, AM (2022). Financing SMEs and business development as new post Covid-19 economic recovery determinants. Economic Analysis and Policy, pp. 76, 554–567.

Mang'ana, KM, Ndyetabula, DW, & Hokororo, SJ (2023). Financial management practices and performance of agricultural small and medium enterprises in Tanzania. Social Sciences & Humanities Open, 7 (1), 100494.

Min, S., & Kim, J. (2022). Effect of opportunity seizing capability on new market development and small and medium-sized enterprise performance: Role of environmental uncertainty in the IT industry. Asia Pacific Management Review, 27 (2), 69-79.

Sahaym, A., Datta, AA, & Brooks, S. (2021). Crowdfunding success through social media: Going beyond entrepreneurial orientation in the context of small and medium-sized enterprises. Journal of business research, 125, 483-494.

Tejamaya, M., Puspoprodjo, W., Susetyo, H., & Modjo, R. (2021). An analysis of pivotal factors in implementing occupational health and safety management systems in micro, small and medium enterprises (MSMEs): A literature review. Gaceta Sanitaria , 35 , S348-S359.




DOI: http://dx.doi.org/10.35448/jrat.v16i1.21006

Refbacks

  • There are currently no refbacks.


pISSN 1979-682X    eISSN 2528-7443

Creative Commons License

Jurnal Riset Akuntasi Terpadu (JRAT) is licensed under a Creative Commons Attribution 4.0 International License