Title: Accounting information and the rationality of bank credits within the Cameroon context

Authors: Guy Djongoue

Addresses: Faculty of Economics Science and Applied Management, University of Douala, Carrefour Ange Raphael, Douala, Cameroon; University Centre for Management Sciences (IAE), University of Bordeaux, Building C403, 35, Avenue Abadie, 33072 Bordeaux, France

Abstract: Credit rationality is that phenomenon whereby the bank sector refuses to grant a loan to individuals or to enterprises even if they are ready to pay the high interest rates demanded by the bank. This refusal to grant a loan is as such, not explained by interest rate but rather by other factors amongst which is accounting information. In Cameroon, the quality of accounting information published by enterprises is of interest to the bank sector. For this reason, we shall study in this article, the quality perceived from accounting information by the bank sector in Cameroon and compare this information with credit rationality. The quality perceived from accounting information is going to be demonstrated through interviews within the framework of a qualitative method. The aim here is to bring out the tendencies expressed by different interviewees on the quality of accounting information. This work is concerned with the need of accounting information by bankers and the exogenous causes in the capital market that explain the rationality of bank credits in Cameroon.

Keywords: credit rationality; accounting figures; accounting information; quality perceptions; bank credit; decision making; information asymmetry; information quality; perceived quality; Cameroon.

DOI: 10.1504/AJAAF.2014.065177

African Journal of Accounting, Auditing and Finance, 2014 Vol.3 No.1, pp.3 - 26

Available online: 15 Oct 2014 *

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