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Year 2023, Volume: 10 Issue: 4, 224 - 235, 31.12.2023

Muhammad Ayub Mehar

Abstract

References

  • Harriss, M., & Raviv, A. (1991). The theory of capital structure. Journal of Finance, 46, 297–355.
  • International Trade Centre. (2019). SME Competitiveness Outlook 2019: Big Money for Small Business – Financing the Sustainable Development Goals. Geneva: ITC (2019).
  • Jensen, G., Solberg, S. P., & Zorn, T. S. (1992). Simultaneous determination of insider ownership, debt, and dividend policies. Journal of Financial and Quantitative Analysis, 27(2), 247–263.
  • Mehar, M. Ayub (2005a). Financial repercussion of cost, revenue, and profit: an extension in the BEP and CVP analysis. Applied Financial Economics, 15, 259–271.
  • Mehar, M. Ayub (2001). Macroeconomic determinants of market capitalization and valuation ratio: the case of the Karachi Stock Exchange. Pakistan Business Review, 3(3), 1-14.
  • Mehar, M. Ayub (2005b). Is debt a substitute of equity? Relevancy of financial policy in current economic scenarios. Applied Financial Economics, 15, 337–366.
  • Mehar, M. Ayub (2005c). Simultaneous Determination of Inventories and Accounts Receivable. Managerial and Decision Economics, 26(1), 259-269.
  • Mehar, M. Ayub (2007). World textile in free trade regime. Journal of the Textile Institute, 98(2), 177-188.
  • Mehar, M. Ayub (2021). Bridge financing during COVID-19 Pandemics: Nexus of FDI, external borrowing and fiscal policy. Transnational Corporation Review, 13(1), 109-124.
  • Mehar, M. Ayub (2022). Magnitude of investment and global value chain: a case study of textile & clothing industry of Pakistan. Journal of Textile Institute, 113(2), 191-198.
  • Miller, M. (1977). Debt and taxes. Journal of Finance, 72(2), 261–275.
  • Miller, M. (1982). Dividends and taxes: some empirical evidence. Journal of Political Economy, 90(6), 1118–1141.
  • Miller, M., & McConnell, J. J. (1995). Open market share repurchases programs and bid-ask spreads on the NYSE: implications for corporate payout policy. Journal of Financial and Quantitative Analysis, 30(3), 365–381.
  • Miller, M., & Modigliani, F. (1958). The cost of capital, corporation finance and the theory of investment. American Economic Review, 48(3), 261–297.
  • Miller, M., & Modigliani, F. (1961). Dividend policy, growth, and the valuation of shares. Journal of Business, 56(3), 411–433.
  • Myers, S. (1989). The capital structure puzzle. Journal of Finance, 39, 575–592.
  • Myers, S., & Majluf, N. (1984). Corporate financing and investment decisions when the firm has information that investors do not have. Journal of Financial Economics, 13(2), 187–221.
  • Organization of Islamic Countries/ Islamic Chamber of Commerce, Industry and Agriculture. (2008). Key Success Factors for National SME Development Program. Proceedings of 6th Meeting on the OIC Task Force on SME. Bangkok, August 15-17.
  • Shleifer, A., & Vishny, R. (1986). Large shareholders and corporate control. Journal of Political Economy, 94(3), 461–488.
  • State Bank of Pakistan (2023). Balance Sheet Analysis of Companies (Non-financial Sector). Karachi: State Bank of Pakistan
  • Wong, C.-Y., & Eng, Y.-K. (2019). Implications of Platform Finance on Monetary Policy Transmission. Asian Development Bank Institute: Working Paper Series, Working Paper No. 970.
  • World Bank. (2017). World Development Indicators. Washington: World Bank Group.
  • World Bank. (2018). World Development Indicators. World Bank Group.
  • World Bank. (2019). World Development Indicators. World Bank Group.
  • World Bank. (20229). World Development Indicators. World Bank Group.
  • World Bank. (2023). World Development Indicators. World Bank Group.

DETERMINANTS OF INTERNAL FINANCING: SMALL AND MEDIUM ENTERPRISES IN PAKISTAN

Year 2023, Volume: 10 Issue: 4, 224 - 235, 31.12.2023

Muhammad Ayub Mehar

Abstract

Purpose- Internal financing is an indicator of self-reliance, growth, and survival of a firm without help from external sources. It assesses the growth and survival of a firm without raising capital in equity or debt markets. This study identifies the determinants of internal financing.
Methodology- The study is based on six years of data from 398 companies in Pakistan, while panel least square (PLS) techniques have been applied to estimate the parameters. The conclusions have been derived through 12 mathematical equations
Findings- This study provides a device to assess the appropriate level of internal equities. From an investment policy point of view, lower return on investment discourages investment in small and medium enterprises.
Conclusion- The lower return on investment discourages investors from investing in small and medium enterprises. To compensate this effect, the study suggests the intervention by monetary and fiscal policy for the survival of small and medium enterprises (SMEs).

Keywords

Dividend intangible assets leverage financing Pakistan SMEs

References

  • Harriss, M., & Raviv, A. (1991). The theory of capital structure. Journal of Finance, 46, 297–355.
  • International Trade Centre. (2019). SME Competitiveness Outlook 2019: Big Money for Small Business – Financing the Sustainable Development Goals. Geneva: ITC (2019).
  • Jensen, G., Solberg, S. P., & Zorn, T. S. (1992). Simultaneous determination of insider ownership, debt, and dividend policies. Journal of Financial and Quantitative Analysis, 27(2), 247–263.
  • Mehar, M. Ayub (2005a). Financial repercussion of cost, revenue, and profit: an extension in the BEP and CVP analysis. Applied Financial Economics, 15, 259–271.
  • Mehar, M. Ayub (2001). Macroeconomic determinants of market capitalization and valuation ratio: the case of the Karachi Stock Exchange. Pakistan Business Review, 3(3), 1-14.
  • Mehar, M. Ayub (2005b). Is debt a substitute of equity? Relevancy of financial policy in current economic scenarios. Applied Financial Economics, 15, 337–366.
  • Mehar, M. Ayub (2005c). Simultaneous Determination of Inventories and Accounts Receivable. Managerial and Decision Economics, 26(1), 259-269.
  • Mehar, M. Ayub (2007). World textile in free trade regime. Journal of the Textile Institute, 98(2), 177-188.
  • Mehar, M. Ayub (2021). Bridge financing during COVID-19 Pandemics: Nexus of FDI, external borrowing and fiscal policy. Transnational Corporation Review, 13(1), 109-124.
  • Mehar, M. Ayub (2022). Magnitude of investment and global value chain: a case study of textile & clothing industry of Pakistan. Journal of Textile Institute, 113(2), 191-198.
  • Miller, M. (1977). Debt and taxes. Journal of Finance, 72(2), 261–275.
  • Miller, M. (1982). Dividends and taxes: some empirical evidence. Journal of Political Economy, 90(6), 1118–1141.
  • Miller, M., & McConnell, J. J. (1995). Open market share repurchases programs and bid-ask spreads on the NYSE: implications for corporate payout policy. Journal of Financial and Quantitative Analysis, 30(3), 365–381.
  • Miller, M., & Modigliani, F. (1958). The cost of capital, corporation finance and the theory of investment. American Economic Review, 48(3), 261–297.
  • Miller, M., & Modigliani, F. (1961). Dividend policy, growth, and the valuation of shares. Journal of Business, 56(3), 411–433.
  • Myers, S. (1989). The capital structure puzzle. Journal of Finance, 39, 575–592.
  • Myers, S., & Majluf, N. (1984). Corporate financing and investment decisions when the firm has information that investors do not have. Journal of Financial Economics, 13(2), 187–221.
  • Organization of Islamic Countries/ Islamic Chamber of Commerce, Industry and Agriculture. (2008). Key Success Factors for National SME Development Program. Proceedings of 6th Meeting on the OIC Task Force on SME. Bangkok, August 15-17.
  • Shleifer, A., & Vishny, R. (1986). Large shareholders and corporate control. Journal of Political Economy, 94(3), 461–488.
  • State Bank of Pakistan (2023). Balance Sheet Analysis of Companies (Non-financial Sector). Karachi: State Bank of Pakistan
  • Wong, C.-Y., & Eng, Y.-K. (2019). Implications of Platform Finance on Monetary Policy Transmission. Asian Development Bank Institute: Working Paper Series, Working Paper No. 970.
  • World Bank. (2017). World Development Indicators. Washington: World Bank Group.
  • World Bank. (2018). World Development Indicators. World Bank Group.
  • World Bank. (2019). World Development Indicators. World Bank Group.
  • World Bank. (20229). World Development Indicators. World Bank Group.
  • World Bank. (2023). World Development Indicators. World Bank Group.
There are 26 citations in total.

Details

Primary Language English
Subjects Finance, Business Administration
Journal Section Articles
Authors

Muhammad Ayub Mehar 0000-0002-9711-2556

Publication Date December 31, 2023
Published in Issue Year 2023 Volume: 10 Issue: 4

Cite

APA Mehar, M. A. (2023). DETERMINANTS OF INTERNAL FINANCING: SMALL AND MEDIUM ENTERPRISES IN PAKISTAN. Journal of Economics Finance and Accounting, 10(4), 224-235.

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