Accounting transformation of PYMES under IFRS and its effect on external financing

Abstract

This study investigates the relationship between accounting transformation under International Financial Reporting Standards (IFRS) and access to external financing for small and medium-sized enterprises (SMEs) in the province of El Oro, Ecuador. Using a quantitative approach, but with a non-experimental design and broad explanatory scope, non-parametric statistical techniques were employed to evaluate the relationship of the variables with the ordinal nature of the data. The study finds that IFRS implementation does not have a significant impact on financing conditions such as interest rates or confidence levels. However, a positive and significant relationship is evident between the implementation of these standards and the quality of financial information. These dimensions are related to the ease of access to external financing and, therefore, play a mediating role. The theoretical implications of our findings are consistent with studies on information asymmetry (Bushman & Smith, 2001), although a critical analysis is offered, highlighting that improved information alone cannot produce a better credit environment. In this context, structural and institutional factors still influence access to finance in emerging contexts. Research provides empirical evidence that supports the idea of ​​accounting as a regulatory tool, but also as a strategic tool, with credibility in a climate of financial uncertainty (Chua & Taylor, 2008).