Research and Sample Methods

Oct 13, 2025 by leolavanderia.com.br 115 views

The Effect of Accounting and Non-Accounting Information on Decisions on Providing Investment Capital Credit Facilities at Bukopin Bank Medan Branch

In the world of finance, credit granting is a crucial process that involves various factors, including accounting and non-accounting information. The decision to provide investment capital credit facilities is not only based on financial data but also on a deeper understanding of the debtor's behavior, experience, and background. This study aims to analyze how accounting information and non-accounting information influence the decision to provide investment capital credit facilities at the Bukopin Bank Medan Branch, with experience as a moderating variable.

Understanding the Importance of Accounting and Non-Accounting Information

Accounting information, such as financial statements and ratios, provides a snapshot of a company's financial health. However, non-accounting information, such as business reputation, debtor education, and business diversification, can also play a significant role in credit decisions. In this context, it is essential to understand that credit granting is not a one-dimensional process but rather a complex decision that involves various factors.

Research and Sample Methods

The population used in this study was all credit requests submitted at the Bukopin Bank Medan Branch during 2010, which amounted to 150 debtors. From this population, the research sample was taken using the purposive sampling method, which produced 136 companies. The analysis method used is multiple linear regression analysis, equipped with a residual test to ensure the validity of the model used.

Research Results

The results of the first hypothesis testing show that simultaneously all independent variables affect the decision to provide investment capital credit facilities with significant significance value. However, when viewed partially, only a few variables such as liquidity, cash position, capital structure, business feasibility, receivable turnover, profit margin, and business reputation that significantly affects the decision to provide credit facilities. Meanwhile, variables such as inventory turnover, business scale, credit guarantees, debtor education, and business diversification do not show significant effects.

Furthermore, the second hypothesis testing indicates that experience as a moderating variable has a significant influence on the business feasibility variable, thereby strengthening the relationship between business feasibility and the decision to provide credit facilities. However, there is no significant effect on other variables such as liquidity, cash position, capital structure, receivable turnover, inventory turnover, business scale, profit margin, credit guarantee, business reputation, debtor education, and business diversification, which has implications for weakening relationships These variables with the decision to provide credit facilities.

Additional Analysis and Explanation

This analysis highlights the importance of in-depth understanding of how accounting and non-accounting information can influence credit decisions. Variables related to financial performance, such as liquidity and profit margin, turned out to have a crucial role in the decision to provide credit. This shows that banks must pay more attention to the company's financial condition when assessing credit feasibility.

On the other hand, the lack of effects of variables such as debtor education and business diversification indicate that banks may prioritize concrete accounting data than soft factors in decision making. Nevertheless, the experience that functions as a moderating variable shows that understanding and background of the debtor can provide an additional context that reinforces the decision.

Implications for Financial Institutions

The results of this study are not only beneficial for the Bukopin Bank Medan Branch but also for other financial institutions in developing a more comprehensive credit assessment strategy. Taking into account both accounting and non-accounting information, banks can make more informed decisions and minimize risks that may occur in credit granting.

In order to increase accuracy and effectiveness in the decision-making process, it is essential for financial institutions to continue to learn and understand the dynamics that occur in the field, including the behavior and experience of debtors in a broader context.

Conclusion

This study provides valuable insights into the effect of accounting and non-accounting information on the decision to provide investment capital credit facilities at the Bukopin Bank Medan Branch. The results highlight the importance of considering both financial and non-financial factors in credit decisions. By taking into account the experience and background of debtors, banks can make more informed decisions and minimize risks that may occur in credit granting.

Recommendations for Future Research

Future research can build on the findings of this study by exploring the following areas:

The impact of accounting and non-accounting information on credit decisions in different industries and countries
The role of experience and background in credit decisions, including the impact of debtor education and business diversification
The development of a more comprehensive credit assessment strategy that takes into account both accounting and non-accounting information

By continuing to explore these areas, researchers can provide valuable insights into the complex process of credit granting and help financial institutions make more informed decisions.
Frequently Asked Questions (FAQs) on The Effect of Accounting and Non-Accounting Information on Decisions on Providing Investment Capital Credit Facilities at Bukopin Bank Medan Branch

Q: What is the main objective of this study? A: The main objective of this study is to analyze how accounting information and non-accounting information influence the decision to provide investment capital credit facilities at the Bukopin Bank Medan Branch, with experience as a moderating variable.

Q: What is the population used in this study? A: The population used in this study was all credit requests submitted at the Bukopin Bank Medan Branch during 2010, which amounted to 150 debtors.

Q: What is the research sample used in this study? A: The research sample used in this study was taken using the purposive sampling method, which produced 136 companies.

Q: What is the analysis method used in this study? A: The analysis method used in this study is multiple linear regression analysis, equipped with a residual test to ensure the validity of the model used.

Q: What are the independent variables used in this study? A: The independent variables used in this study are liquidity, cash position, capital structure, business feasibility, receivable turnover, profit margin, and business reputation.

Q: What is the moderating variable used in this study? A: The moderating variable used in this study is experience.

Q: What are the results of the first hypothesis testing? A: The results of the first hypothesis testing show that simultaneously all independent variables affect the decision to provide investment capital credit facilities with significant significance value.

Q: What are the results of the second hypothesis testing? A: The results of the second hypothesis testing indicate that experience as a moderating variable has a significant influence on the business feasibility variable, thereby strengthening the relationship between business feasibility and the decision to provide credit facilities.

Q: What are the implications of this study for financial institutions? A: The results of this study are not only beneficial for the Bukopin Bank Medan Branch but also for other financial institutions in developing a more comprehensive credit assessment strategy. Taking into account both accounting and non-accounting information, banks can make more informed decisions and minimize risks that may occur in credit granting.

Q: What are the limitations of this study? A: The limitations of this study include the use of a single case study, the limited sample size, and the reliance on secondary data.

Q: What are the recommendations for future research? A: Future research can build on the findings of this study by exploring the following areas:

The impact of accounting and non-accounting information on credit decisions in different industries and countries
The role of experience and background in credit decisions, including the impact of debtor education and business diversification
The development of a more comprehensive credit assessment strategy that takes into account both accounting and non-accounting information

Q: What are the practical implications of this study for financial institutions? A: The practical implications of this study for financial institutions include the need to consider both accounting and non-accounting information in credit decisions, the importance of experience and background in credit decisions, and the need to develop a more comprehensive credit assessment strategy.

Q: What are the theoretical implications of this study for the field of finance? A: The theoretical implications of this study for the field of finance include the need to consider the role of experience and background in credit decisions, the importance of non-accounting information in credit decisions, and the need to develop a more comprehensive credit assessment strategy.