Financial Literacy, Asymmetric Information, and Credit Accessibility: Case Study of SMEs in the Lao PDR

Main Article Content

Vilasack Srithirath
Pariyada Sukcharoensin


This study aims to investigate the impact of financial literacy, reduction in asymmetric information and credit access for SMEs in Lao PDR. The questionnaire used to survey the financial literacy is the combination of financial knowledge, financial behavior, financial attitude, and some advanced financial concepts. Besides that, to assess the level of asymmetric information, this study uses the satisfaction of both lender and borrower about the information that provided and received from both parties. The methodology used in this study is binary logistic regression and the SMEs owners who running their business in Vientiane were used as samples. The results reveal positive and significant relationship between financial literary, reduction in asymmetric information and credit access for SMEs. Furthermore, we found that education level is positive and significantly related to financial literacy. Higher financial literacy then lowers the level of asymmetric information which in turn affects the credit access of SMEs.

Article Details

Author Biographies

Vilasack Srithirath

Graduate Student, Master in Financial Economics Program - Graduate School of Development Economics, National Institute of Development Administration, 148 Serithai Road, Klong-Chan, Bangkapi, Bangkok 10240, Thailand

Pariyada Sukcharoensin

Associate Professor of Finance, Graduate School of Development Economics, National Institute of Development Administration, Serithai Road, Klong-Chan, Bangkapi, Bangkok 10240, Thailand


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