Managers’ Cognition and Financing Risk from the Perspective of Environmental Uncertainty

The financing difficulties of Small and medium-sized enterprises (SMEs) have long been a major factor restricting the development of SMEs. Suppressing financing risks can help SMEs alleviate financing difficulties. From the perspective of environmental uncertainty, this paper investigates the impact of SMEs managers’ cognitive bias generated during financing on financing risks. The results shows that the cognitive biases of SMEs managers mainly include external environment bias and internal decision-making bias. The former includes situational factor variation bias and heuristic bias, and the latter includes internal recognition bias and psychological bias. The external environment bias and internal decision bias are affected by factors such as macroeconomic policies, life cycle, self-liquidation trade constraint, and post-loan control, and they both have a significant impact on the financing risks of SMEs. The conclusion of this study is of great significance to reduce the financing risk of SMEs.