Asymmetrical Information Between Smes And Banking: A Perspective From Signaling Theory
Abstract
The aim of this research will be to look more deeply into the problems faced by MSMEs in obtaining capital from banks due to the existing information asymmetry. This study uses a qualitative method that aims to explore the conditions in the field. The data analysis model used in this study is descriptive, qualitative, and quantitative, presented in the form of tables and images with descriptive statistics so that a comprehensive picture is obtained that can explain the research questions. Data collection techniques use questionnaires in the form of closed and open questions, interviews, and documentation.We find that there are information asymmetry between customers and banks. The information signal given by customers cannot be understood properly by bank officers because the information conveyed is in accordance with the SOP set by the bank. Customers modify the information given to bank officers so that the credit given is approved for several reasons such as insufficient collateral, other urgent needs, paying off debts from other creditors (take over), for new businesses, education costs and helping families. The bank's developed instrument should have identified the customer's signal. The bank can ignore this signal because the customer has a credit score that is not problematic and pays installments on time.
Full text article
References
Blut, M., Chowdhry, N., Mittal, V., & Brock, C. (2015). E-Service Quality: A Meta-Analytic Review. Journal of Retailing, 91(4), 679–700. https://doi.org/10.1016/j.jretai.2015.05.004
Ghosh, S., & Van Tassel, E. (2013). Funding microfinance under asymmetric information. Journal of Development Economics, 101(1). https://doi.org/10.1016/j.jdeveco.2012.09.005
Gunawan, E., Ilham, N., Syukur, M., Pasaribu, S. M., & Suhartini, S. H. (2021). Farmers’ perceptions and issue of Kredit Usaha Rakyat in Indonesia. IOP Conference Series: Earth and Environmental Science, 892(1), 0–7. https://doi.org/10.1088/1755-1315/892/1/012017
Hanafi, M. M. (2015). Manajemen Keuangan. Cetakan Kedelapan. BPFE Yogyakarta.
Maesaroh, S. S., Rahayu, A., Wibowo, L. A., Sofia, A., & Rahatuningtyas, R. (2024). Does Asymmetric Information Perception Relate to MSMEs’ Access to Banking Credit? (Vol. 1). Atlantis Press International BV. https://doi.org/10.2991/978-94-6463-234-7_22
Mas, I. (2011). Why are banks so scarce in developing countries? a regulatory and infrastructure perspective. Critical Review, 23(1–2), 135–145. https://doi.org/10.1080/08913811.2011.574476
Mohajan, H. A. (2018). Qualitative Research Methodology in Social Sciences and Related Subjects Mohajan,. Journal of Economic Development, Environment and People, 7(2116), 23–48.
Purmiyati, A., Berma, M., Talib, B. A., & Rakhima, M. S. (2019). The Role of Banking Capital in Industrial Sector Micro Enterprises for Poverty Alleviation: A Study in East Java, Indonesia. Foundations of Management, 11(1), 131–142. https://doi.org/10.2478/fman-2019-0011
Purwono, R., Nugroho, R. Y. Y., & Mubin, M. K. (2019). Response on new credit program in Indonesia: An asymmetric information perspective. Journal of Asian Finance, Economics and Business, 6(2), 33–44. https://doi.org/10.13106/jafeb.2019.vol6.no2.33
Shinozaki, S. (2014). A New Regime of SME Finance in Emerging Asia: Enhancing Access to Growth Capital and Policy Implications. Journal of International Commerce, Economics and Policy, 5(3). https://doi.org/10.1142/S1793993314400109
Song, H. (2020). How do supply chain network and SMEs’ operational capabilities enhance working capital financing? An integrative signaling view. International Journal of Production Economics, 220. https://doi.org/10.1016/j.ijpe.2019.07.020
Susanto, E. E., & Suryani, Z. (2024). PENGARUH UKURAN PERUSAHAAN, LEVERAGE, DAN PROFITABILITAS TERHADAP NILAI PERUSAHAAN. Jurnal Cakrawala Ilmiah, 3, 2413–2426.
Tambunan, T. T. H. (2019). Indonesian Small Businesses And Their Access To Financing. 2(03).
Wurarah, F. H., Rumagit, G. A. J., & Dumais, J. N. K. (2022). Persepsi Konsumen Kredit Usaha Rakyat (KUR) Terhadap Pelayanan PT. Bank Rakyat Indonesia Tbk. Unit Langowan. COCOS: E-Journal Fakultas Pertanian Universitas Sam Ratulangi Manado, 19(2), 1–14.