Nanyondo, Mary NanyondoKamukama, NixonNkundabanyanga, StephenTauringana, Venancio2022-09-262022-09-262014Nanyondo, M., Tauringana, V., Kamukama, N., & Nkundabanyanga, S. (2014). Quality of financial statements, information asymmetry, perceived risk and access to finance by Ugandan SMEs. International Journal of Management Practice, 7(4), 324-340.https://www.inderscienceonline.com/doi/abs/10.1504/IJMP.2014.065230https://nru.uncst.go.ug/handle/123456789/4835The objective of this paper is to investigate the relationship between quality of financial statements, information asymmetry, perceive risk and access to finance by Ugandan small and medium-sized enterprises (SMEs). Design/ methodology/approach - This study is cross-sectional and correlational. Using Ordinary Least Squares (OLS) multiple regression we determine the magnitude/strength of the relationship between the dependent and independent variables. Data is obtained from a questionnaire survey on a sample of 75 SMEs registered and operating in Kampala, Uganda. Findings- The results indicate that there is a significant positive relationship between quality of financial statements and access to finance and a significant negative relationship between information asymmetry and access to finance. However, perceived risk is not significantly associated with access to finance. The interaction between quality of financial statements and perceived risk is negative meaning that high quality financial statements coupled with high perceived risk will result in low access to finance. Originality/value- The study provides evidence of the perceived effect of quality of financial statements, information asymmetry and perceived risk on access to finance by Ugandan SMEs where such evidence does not currently exist. Our results are especially significant because they show probably for the first time that it is not enough to have high quality financial statements when other factors that could explain perceived risk undermine are not taken care of in the explanation of access to credit. Implications- The study recommends that SMEs’ owner/managers should be trained on the importance of quality of financial statements to improve their access to finance.enQuality of financial statementsInformation asymmetryPerceived riskAccess to financeSMEsUgandaArticle