BibTex RIS Kaynak Göster

THE COMPARISON OF CAPITAL STRUCTURE DETERMINANTS BETWEEN SMALL AND MEDIUM ENTERPRISES (SMEs) AND LARGE FIRMS IN MALAYSIA

Yıl 2013, Cilt: 5 Sayı: 1, 22 - 32, 01.06.2013

Öz

The objective of the paper is to analyze the determinants of capital structure of firms, by comparing Small and Medium Enterprises (SMEs) and large firms. SMEs in Malaysia play a significant role in the national economy. However, contribution of Malaysian SMEs to economy is not up to the mark to selected benchmarking countries such as South Korea and Japan. One of major reasons is financial constraint. Given that the resource of financial assistance from government is limited, concentration has to be given to potential firms which are listed as Enterprise 50 (E50). E50 is a prestigious awards program to recognize the achievements of SMEs. Panel data analysis has been used to test the determinants of capital structure, indicated by the leverage ratio of the firms. The independent variables are asset tangibility, profitability, non-debt tax shield, liquidity, age and size. Evaluation is based on financial data of 285 firms consisting of 91 SMEs and 194 large firms for a period of 2004 till 2011. Trade Off and Pecking Order theory are discussed. The result shows that capital structure of SMEs and large firms are almost similar except in term of growth, liquidity and size. Growth is important for large firms. Liquidity is the critical factor for SMEs in determining short term debt, and size does matter to SMEs

Kaynakça

  • Abor, Joshua (2008), Determinants of the Capital Structure of Ghanaian Firms,
  • African Economic Research Consortium, www.aercafrica.org/documents/rp176.pdf, [Accessed 8.4.2011]
  • Ang, James S (1991), “Small Business Uniqueness and the Theory of Financial
  • Management”, Journal of Small Business Finance, Vol. 1, No. 1, pp.1-13. Asmawi, Noor Saarani and Faridah Shahadan (2012), “The Determinant of
  • Working Capital Requirements for Enterprise 50 (E50) Firms in Malaysia: Analysis Using Structural Equation Modeling”, Scottish Journal of Arts, Social Sciences and Scientific Studies, Vol. 5, No. 2, pp.52-66. Baiocchi, Giovanni and Distaso Walter (2003), “GRETL: Econometric Software for the GNU Generation”, Journal of Applied Econometrics, No. 18, pp.105-110.
  • Baltagi, Badi H (2005), Econometrics Analysis of Panel Data, West Sussex: John Wiley & Sons.
  • Belsley, David A, Kuh Edwin and Welsch Roy E (1980), Regression Diagnostics:
  • Identifying Influential Data and Sources of Collinearity. New York: John Wiley & Sons. Bradley, Michael, Jarrell Gregg A and Kim E. Han (1984), “On the Existence of an Optimal Capital Structure: Theory and Evidence”, The Journal of Finance, Vol. 39, No. 3, pp.857-878.
  • Brealey, Richard A, Myers Stewart C and Marcus Alan J (2012), Fundamentals of
  • Corporate Finance, New York: McGraw-Hill Irwin. Chittenden, Francis, Hall Graham and Hutchinson Patrick (1996), “Small Firm
  • Growth, Access to Capital Markets and Financial Structure: Review of Issues and an Empirical Investigation”, Small Business Economics, No. 8, pp.56-67. DeAngelo, Harry and Masulis Ronald W (1980), “Optimal Capital Structure under Corporate and Personal Taxation”, Journal of Financial Economics, Vol. 8, pp.3-29.
  • Forgues, Bernard and Derumez Isabelle Vandangeon (2001), “Longitudinal
  • Analysis”, (in: Raymond Alain Thietart-Ed., Doing Management Research: A Comprehensive Guide,), London: Sage Publications, pp.332-350. Hsiao, Cheng (2003), Analysis of Panel Data, Cambridge: Cambridge University Press.
  • Kennedy, Peter (2003), A Guide to Econometrics, Oxford: Blackwell Publishing.
  • Kraus, Alan, and Litzenberger Robert H (1973), “A State Preference Model of
  • Optimal Financial Leverage”, Journal of Finance, Vol. 28, No. 4, pp.911-922. López-Gracia, José and Sogorb-Mira Francisco (2008), “Testing Trade-Off and Pecking Order Theories Financing SMEs”, Small Business Economics, Vol. 31, No. 2, pp.117-136.
  • Malaysia (2012), SME Annual Report 2011/12: Redefining the Future, Kuala
  • Lumpur: SME Corp Malaysia. Modigliani, Franco and Miller Merton H (1958), “The Cost of Capital, Corporate
  • Finance and the Theory of Investment”, The American Economic Review, Vol. 48, No. 3, pp.261-296. Modigliani, Franco, and Miller Merton H (1963), “Corporate Income Taxes and the Cost of Capital: A Correction”, American Economic Review, No. 53, pp.433
  • Myers, Stewart C (1984), “The Capital Structure Puzzle”, The Journal of Finance, Vol. 39, No. 3, pp.575-592.
  • Myers, Stewart C and Majluf Nicholas S (1984), “Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not
  • Have”, Journal of Financial Economics, Vol. 13, pp.187-221. Rajan, Raghuram G and Zingales Luigi (1995), “What Do We Know about
  • Capital Structure? Some Evidence from International Data”, The Journal of Finance, Vol. 50, No. 5, pp.1421-1460.
  • Ramlall, Indranarain (2009), “Determinants of Capital Structure Among Non
  • Quoted Mauritian Firms Under Specificity of Leverage: Looking for a Modified Pecking Order Theory”, International Research Journal of Finance and Economics, No.31, pp.84-92. Shari, Ishak and Endut Wook (1989), “Small Industries in Malaysia: Its
  • Development, Structure and Problems”, (in: Ismail Mohd Salleh-Ed., Small Industries, ), Kuala Lumpur: AMK Interaksi Sdn Bhd, pp.1-48. Titman, Sheridan and Wessels Roberto (1988), “The Determinants of Capital
  • Structure Choice”, The Journal of Finance, Vol. 43, No. 1, pp.1-19.
Yıl 2013, Cilt: 5 Sayı: 1, 22 - 32, 01.06.2013

Öz

Kaynakça

  • Abor, Joshua (2008), Determinants of the Capital Structure of Ghanaian Firms,
  • African Economic Research Consortium, www.aercafrica.org/documents/rp176.pdf, [Accessed 8.4.2011]
  • Ang, James S (1991), “Small Business Uniqueness and the Theory of Financial
  • Management”, Journal of Small Business Finance, Vol. 1, No. 1, pp.1-13. Asmawi, Noor Saarani and Faridah Shahadan (2012), “The Determinant of
  • Working Capital Requirements for Enterprise 50 (E50) Firms in Malaysia: Analysis Using Structural Equation Modeling”, Scottish Journal of Arts, Social Sciences and Scientific Studies, Vol. 5, No. 2, pp.52-66. Baiocchi, Giovanni and Distaso Walter (2003), “GRETL: Econometric Software for the GNU Generation”, Journal of Applied Econometrics, No. 18, pp.105-110.
  • Baltagi, Badi H (2005), Econometrics Analysis of Panel Data, West Sussex: John Wiley & Sons.
  • Belsley, David A, Kuh Edwin and Welsch Roy E (1980), Regression Diagnostics:
  • Identifying Influential Data and Sources of Collinearity. New York: John Wiley & Sons. Bradley, Michael, Jarrell Gregg A and Kim E. Han (1984), “On the Existence of an Optimal Capital Structure: Theory and Evidence”, The Journal of Finance, Vol. 39, No. 3, pp.857-878.
  • Brealey, Richard A, Myers Stewart C and Marcus Alan J (2012), Fundamentals of
  • Corporate Finance, New York: McGraw-Hill Irwin. Chittenden, Francis, Hall Graham and Hutchinson Patrick (1996), “Small Firm
  • Growth, Access to Capital Markets and Financial Structure: Review of Issues and an Empirical Investigation”, Small Business Economics, No. 8, pp.56-67. DeAngelo, Harry and Masulis Ronald W (1980), “Optimal Capital Structure under Corporate and Personal Taxation”, Journal of Financial Economics, Vol. 8, pp.3-29.
  • Forgues, Bernard and Derumez Isabelle Vandangeon (2001), “Longitudinal
  • Analysis”, (in: Raymond Alain Thietart-Ed., Doing Management Research: A Comprehensive Guide,), London: Sage Publications, pp.332-350. Hsiao, Cheng (2003), Analysis of Panel Data, Cambridge: Cambridge University Press.
  • Kennedy, Peter (2003), A Guide to Econometrics, Oxford: Blackwell Publishing.
  • Kraus, Alan, and Litzenberger Robert H (1973), “A State Preference Model of
  • Optimal Financial Leverage”, Journal of Finance, Vol. 28, No. 4, pp.911-922. López-Gracia, José and Sogorb-Mira Francisco (2008), “Testing Trade-Off and Pecking Order Theories Financing SMEs”, Small Business Economics, Vol. 31, No. 2, pp.117-136.
  • Malaysia (2012), SME Annual Report 2011/12: Redefining the Future, Kuala
  • Lumpur: SME Corp Malaysia. Modigliani, Franco and Miller Merton H (1958), “The Cost of Capital, Corporate
  • Finance and the Theory of Investment”, The American Economic Review, Vol. 48, No. 3, pp.261-296. Modigliani, Franco, and Miller Merton H (1963), “Corporate Income Taxes and the Cost of Capital: A Correction”, American Economic Review, No. 53, pp.433
  • Myers, Stewart C (1984), “The Capital Structure Puzzle”, The Journal of Finance, Vol. 39, No. 3, pp.575-592.
  • Myers, Stewart C and Majluf Nicholas S (1984), “Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not
  • Have”, Journal of Financial Economics, Vol. 13, pp.187-221. Rajan, Raghuram G and Zingales Luigi (1995), “What Do We Know about
  • Capital Structure? Some Evidence from International Data”, The Journal of Finance, Vol. 50, No. 5, pp.1421-1460.
  • Ramlall, Indranarain (2009), “Determinants of Capital Structure Among Non
  • Quoted Mauritian Firms Under Specificity of Leverage: Looking for a Modified Pecking Order Theory”, International Research Journal of Finance and Economics, No.31, pp.84-92. Shari, Ishak and Endut Wook (1989), “Small Industries in Malaysia: Its
  • Development, Structure and Problems”, (in: Ismail Mohd Salleh-Ed., Small Industries, ), Kuala Lumpur: AMK Interaksi Sdn Bhd, pp.1-48. Titman, Sheridan and Wessels Roberto (1988), “The Determinants of Capital
  • Structure Choice”, The Journal of Finance, Vol. 43, No. 1, pp.1-19.
Toplam 27 adet kaynakça vardır.

Ayrıntılar

Diğer ID JA62AF97KB
Bölüm Makaleler
Yazarlar

Asmawi Noor Saarani Bu kişi benim

Faridah Shahadan Bu kişi benim

Yayımlanma Tarihi 1 Haziran 2013
Yayımlandığı Sayı Yıl 2013 Cilt: 5 Sayı: 1

Kaynak Göster

APA Saarani, A. N., & Shahadan, F. (2013). THE COMPARISON OF CAPITAL STRUCTURE DETERMINANTS BETWEEN SMALL AND MEDIUM ENTERPRISES (SMEs) AND LARGE FIRMS IN MALAYSIA. International Journal of Economics and Finance Studies, 5(1), 22-32.
AMA Saarani AN, Shahadan F. THE COMPARISON OF CAPITAL STRUCTURE DETERMINANTS BETWEEN SMALL AND MEDIUM ENTERPRISES (SMEs) AND LARGE FIRMS IN MALAYSIA. IJEFS. Haziran 2013;5(1):22-32.
Chicago Saarani, Asmawi Noor, ve Faridah Shahadan. “THE COMPARISON OF CAPITAL STRUCTURE DETERMINANTS BETWEEN SMALL AND MEDIUM ENTERPRISES (SMEs) AND LARGE FIRMS IN MALAYSIA”. International Journal of Economics and Finance Studies 5, sy. 1 (Haziran 2013): 22-32.
EndNote Saarani AN, Shahadan F (01 Haziran 2013) THE COMPARISON OF CAPITAL STRUCTURE DETERMINANTS BETWEEN SMALL AND MEDIUM ENTERPRISES (SMEs) AND LARGE FIRMS IN MALAYSIA. International Journal of Economics and Finance Studies 5 1 22–32.
IEEE A. N. Saarani ve F. Shahadan, “THE COMPARISON OF CAPITAL STRUCTURE DETERMINANTS BETWEEN SMALL AND MEDIUM ENTERPRISES (SMEs) AND LARGE FIRMS IN MALAYSIA”, IJEFS, c. 5, sy. 1, ss. 22–32, 2013.
ISNAD Saarani, Asmawi Noor - Shahadan, Faridah. “THE COMPARISON OF CAPITAL STRUCTURE DETERMINANTS BETWEEN SMALL AND MEDIUM ENTERPRISES (SMEs) AND LARGE FIRMS IN MALAYSIA”. International Journal of Economics and Finance Studies 5/1 (Haziran 2013), 22-32.
JAMA Saarani AN, Shahadan F. THE COMPARISON OF CAPITAL STRUCTURE DETERMINANTS BETWEEN SMALL AND MEDIUM ENTERPRISES (SMEs) AND LARGE FIRMS IN MALAYSIA. IJEFS. 2013;5:22–32.
MLA Saarani, Asmawi Noor ve Faridah Shahadan. “THE COMPARISON OF CAPITAL STRUCTURE DETERMINANTS BETWEEN SMALL AND MEDIUM ENTERPRISES (SMEs) AND LARGE FIRMS IN MALAYSIA”. International Journal of Economics and Finance Studies, c. 5, sy. 1, 2013, ss. 22-32.
Vancouver Saarani AN, Shahadan F. THE COMPARISON OF CAPITAL STRUCTURE DETERMINANTS BETWEEN SMALL AND MEDIUM ENTERPRISES (SMEs) AND LARGE FIRMS IN MALAYSIA. IJEFS. 2013;5(1):22-3.