The Effect of the Quality of Financial Statements and Access to Financing on the Performance of MSMEs in Indonesia

  • Haliana Haliana Universitas Cokroaminoto Yogyakarta, Yogyakarta, Indonesia
  • Endarwati Endarwati Universitas Cokroaminoto Yogyakarta, Yogyakarta, Indonesia
DOI: https://doi.org/10.31538/iijse.v9i1.8136
Keywords: Quality of Financial Statements, Access to Financing, Performance of MSMEs, Yogyakarta

Abstract

Micro, small, and medium enterprises (MSMEs) have a strategic role in the Indonesian economy, but still face obstacles in financial reporting and access to financing that have an impact on business performance. This research is important because the results of previous studies showed inconsistency and did not study many variables at the same time, especially in the Special Region of Yogyakarta. This study aims to analyze the influence of the quality of financial statements and access to financing on the performance of MSMEs in the Special Region of Yogyakarta. This study uses a quantitative approach through a survey of 150 MSME respondents in Yogyakarta, which was analyzed using multiple linear regression analysis with the help of SPSS. The results showed that the quality of financial statements and access to financing had a significant effect on the performance of MSMEs (p < 0.05). The value of the regression coefficient for the quality of financial statements was 0.393 and access to financing was 0.461. Simultaneously, the two variables explain the 50.2% variation in MSME performance (Adjusted R² = 0.502). Thus, it can be concluded that the quality of financial statements and access to financing significantly improve the performance of MSMEs in the Special Region of Yogyakarta.

Downloads

Download data is not yet available.

References

Ayem, R., Sari, D., & Nugroho, A. (2020). The effect of the quality of financial statements on the performance of MSMEs in Indonesia. Journal of Management and Business, 15(2), 123-134.

Ayem, S., & Wahidah, U. (2021). Factors that affect the financial performance of MSMEs in the city of Yogyakarta. JEMMA (Journal of Economics, Management and Accounting), 4(1), 1-9

Akinadewo, A., Oluwajoba, B., & Adesola, O. (2023). Financial reporting quality and firm performance: Evidence from SMEs. Journal of Accounting and Business Research, 12(1), 45–57.

Chrisanty, D., Wulandari, S., & Prasetyo, H. (2021). The quality of financial statements and their impact on the performance of MSMEs. Journal of Accounting and Finance, 9(1), 45-58.

Devi, S., Komala, F. S., Zahro, S. A., Daeli, A. R., Daeli, A. K., & Endarwati. (2023). Analysis of the financial performance of companies in the food and beverage sub-sector listed on the Indonesia Stock Exchange in the period 2020–2022. Scientific Journal, 7(1), 108–118. https://issn.lipi.go.id/terbit/detail/20210518011294529

Herliana, Y., Atika, & Siregar, S. (2020). The Effect of Access to Capital and Financial Literacy on the Sustainability of MSMEs in Galang District. Journal of Business Strategy, 20(1), 1–13.

Hidayat, R. (2021). The role of access to financing in increasing the competitiveness of MSMEs in Indonesia. Journal of Economics and Business, 14(2), 120-130.

Ilarrahmah, R., & Susanti, E. (2021). The ability to prepare financial reports and financial literacy in improving the performance of MSMEs in Bantul Regency. Fairness Journal, 9(2), 1-15.

Ministry of Finance of the Republic of Indonesia. (2024). Encouraging Economic Growth through KUR and MSME Incentives.

KULSUM, U. (2024). The Influence of Financial Literacy, Access to Finance and Financial Risk Attitude on the Financial Performance of MSMEs in Magelang City. (Doctoral dissertation, Tidar University)

Khairunisa, K. P. (2023). Financial Management and Access to Capital on Micro Business Performance in Tempeh Artisans in Jambi City (Doctoral dissertation, JAMBI UNIVERSITY)

Muhamad, N. (2023). Number of Micro, Small, and Medium Enterprises/MSMEs in Indonesia by Class (2021).

Mayasari, N. L. (2022). The Effect of Financial Statement Quality, Financial Inclusion, and Financial Literacy on the Performance of MSMEs in Pati Regency (Doctoral dissertation, Sultan Agung Islamic University)

Owusu, F., Ansong, A., & Boakye, K. (2017). Financial resources and firm growth: Evidence from Ghanaian SMEs. International Journal of Business and Social Science, 8(2), 45–54.

Putri, A. C. S., & Setyawan, I. R. (2024). The Effect of Working Capital and Access to Funding on the Performance of MSMEs in Prambanan District, Klaten Regency. Indonesian Journal of Economics and Business, 15(1), 45-58.

Pakpahan, Y. E. (2021). The effect of the quality of financial statements on the performance of MSME businesses. Inventory: Journal of Accounting, 5(1), 10–19.

Putra, A. (2020). The effect of the quality of financial statements on the performance of MSMEs. Scientific Journal of Economics, 10(1), 34-42.

Pakpahan, Y. E. (2020). The effect of the quality of financial statements on the performance of MSME businesses. Accountability, 17(2), 261-269.

Pakpahan, Y. E. (2021). The effect of the quality of financial statements on the performance of MSME businesses. Inventory: Journal of Accounting, 5(1), 10–19.

Permana, E., Harnovinsah, H., & Alifia, N. (2019). The effect of access to financing on the performance of MSMEs in Indonesia. Journal of Management and Business, 8(1), 634–646.

Rahayu, S., & Andini, D. (2021). Analyze the ability of MSME actors to use financial statements for decision-making. Journal of Applied Accounting, 7(2), 56-67.

Rhamanda, A. Z., Marsofiyati, & Eryanto, H. (2022). The effect of entrepreneurship knowledge, personality and family environment on student entrepreneurial interests. Journal of Economics, Office and Accounting Education, 7(2), 101–111.

Rahmawati, E., & Prasetyo, A. (2021). The impact of access to financing on the performance of MSMEs in Indonesia. Journal of Management and Entrepreneurship, 9(2), 98–105.

Spence, M. (1973). Job market signalling. The Quarterly Journal of Economics, 87(3), 355–374.

Sugiyono. (2018). Statistics for Research. Alphabet.

Sugiyono. (2022). Quantitative, qualitative, and R&D research methods. (2018). Quantitative, qualitative, and R&D research methods.

Sekaran, U., & Bougie, R. (2017). Research methods for business: A skill- building approach (7th ed.).

Sari, N. P., & Nugroho, L. (2018). The effect of access to financing on the performance of MSMEs in Yogyakarta. Journal of Economics & Business, 13(1), 23–31.

Sugiarto, & Pratama, R. (2022). Barriers to MSME financing access and its impact on business innovation. Journal of Management and Business, 10(3), 120-130.

Tandigau, Y. N. (2024). The Effect of Access to Financing and Use of Financial Technology on the Performance of SMEs in Makassar City (Case Study on SMEs in Makassar City). Yos Soedarso Economic Journal, 6(3), 110–118.

Tandigau, Y. N., Jaya, A., & Halik, J. B. (2024). The Effect of Access to Financing and the Use of Financial Technology on the Performance of SMEs in Makassar City (Case Study on SMEs in Makassar City). Yos Soedarso Economic Journal (YEJ), 6(3), 110-118.

Toha, Mohamad & Habibah, N.J. (2023). MSME Empowerment and Development Program to Increase Consumer Satisfaction. Sahwahita: Community Engagement Journal, 1(1), 26-39. https://e-journal.bustanul-ulum.id/index.php/Sahwahita/article/view/24

Utami, N. W., Sudrajat, S., Metalia, M., & Idris, A. Z. (2024). The Influence of Financial Information on the Performance of MSMEs in Bandar Lampung City. Journal of Accounting Sciences, 2(2), 76-85.

Winarso, R., & Kurniawati, A. (2022). Factors that affect the performance of MSMEs in the digital era. Journal of Economics and Business, 17(1), 57–70.

Zahra, S. (2022). Definition, Criteria, and Concept of MSMEs. Osfpreprints, 1–13.

Zarefar, A., & Oktari, R. (2021). The Effect of Financial Statement Quality on MSME Performance: A Study on MSMEs in West Java. Journal of Financial Management, 8(4), 99-110.

Published
2025-11-05
How to Cite
Haliana, H., & Endarwati, E. (2025). The Effect of the Quality of Financial Statements and Access to Financing on the Performance of MSMEs in Indonesia. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 9(1), 788-805. https://doi.org/10.31538/iijse.v9i1.8136
Issue
Vol 9 No 1 (2026): Sharia Economics
Section
Articles

Copyright (c) 2025 Haliana Haliana, Endarwati Endarwati

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

      • Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
      • Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
      • Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.