The strength of the article

 The researcher explain clearly the phenomena about the information asymmetry in the small firm
in the UK and the reason about how the phenomena continously. We can see in the paragraph “the
small firm recipient of finance” it tell us that the information asymmetry problem is partly one
relating to difficulties in the spheres of communication and credibility. It also discuss why the
small firm face difficulties in raising funds. Overall its clearly explain the effects of information
asymmetry.
 The authors use qualitative method that instrument based on the researcher.
 The use of external finance is complete as we can see in the table. The author use of various forms
of QCOM finance.
 In the article engaging more than 2 samples, thus make the research more detail and has bigger
scope of study.
 In the implication part, the implication for small firm and policy stated in a comprehensive and
detailed way, that make the research focus on the effect to small firm finance.
 The exposure of previous studies has been well described by the author. This is described
in pages 44 to 46, for example, such as Bannock and Doran, Binks and Bennew, etc.

Points to be improved

 I don’t agree with the title and the contents of the article because the title is Information asymmetry,
small firm finance and the role of the government. But the role of the government itself is not
clearly defined in the contents.
 Maybe the author can add the hypothesis for the research so the reader can understanding the type
of research methodology although based on sugiyono book that hypothesis is not a must for
qualitative research.
 I still confused about the variable. The variable is not clearly defined. As we can see the aim of the
research is to how the small firms currently obtain their finance and to explore the nature of the
financing constraints they experience, with particular reference to the market failure. The research
technique is chi-square analysis about impact of stage of development, firm objective and location
on use of external finance also impact of owner-manager, age, gender, and ethnic origin. Its mean
that the researcher only focusing in how the small firm can obtain the financial source not the
asymmetry information itself. The factor they use are not clearly defined in my opinion. And the
authors don’t give the reason why they choose the sampling in their research
 The type of research is confused, i think the type of research is mixed between quantitative and
qualitative.
 In the paper did not stated what is the specification or the comparison of the “high-rate” itself
 The article did not explain the source of fund in detail, it must be good if it explained what is the
source of fund that are engaging in the article
 In the article did not show the result of SPSS, it only descriptively stated the amount without
showing the table of the result, like the chi square result.
 The sample used in this journal is quite a lot, that is 1000 SMEs in the UK. As we know,
the more the number of samples, the more accurate the results of the research.
 The exposure of the theoretical foundations used in this journal is incomplete, so the
underlying theoretical foundation becomes less clear. As in page 45 below figure 1, it is
said that "in theory, the provider can reduce the risk of type I / II errors ..." in the paragraph
is not explained what theory is used, so we think the theoretical exposure is less clear.
 In this journal, the use of indent paragraphs is not used, causing the journal to be less
interesting to read in terms of neatness of the paragraph.
 GROUP 2
CRITICAL REVIEW
“Information Asymmetry, Small Firm Finance and the Role of
Government”

Members of the Group :

Ida Ayu Artha Widya Sari 1506305143
Ni Nyoman Tri Setya Prajayanti 1506305808
Made Cahyani Prastuti 1506305144

Faculty Economic and Business

Udayana University
2018