Modelling debt financing behaviour of Malaysia SMEs

This study models the debt financing behaviour of SMEs (Enterprise 50) in Malaysia to determine the existence of target debt, speed of adjustment and rational financing by utilizing panel data from 2009-2013. The estimated debt financing model revealed certain factors such as profitability, tangibi...

Full description

Bibliographic Details
Main Author:	Haron, Razali
Format:	Conference or Workshop Item
Language:	English English
Published:	IEEE 2015
Subjects:	HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/44532/ http://irep.iium.edu.my/44532/ http://irep.iium.edu.my/44532/ http://irep.iium.edu.my/44532/10/44532-Modelling_debt_financing_behaviour_of_Malaysia_SMEs_Fullpaper.pdf http://irep.iium.edu.my/44532/13/44532_Modelling%20debt%20financing_scopus.pdf

id	iium-44532
recordtype	eprints
spelling	iium-445322017-09-19T04:38:14Z http://irep.iium.edu.my/44532/ Modelling debt financing behaviour of Malaysia SMEs Haron, Razali HG4001 Financial management. Business finance. Corporation finance. This study models the debt financing behaviour of SMEs (Enterprise 50) in Malaysia to determine the existence of target debt, speed of adjustment and rational financing by utilizing panel data from 2009-2013. The estimated debt financing model revealed certain factors such as profitability, tangibility,business risk, growth, size, liquidity and share price performance significantly influence target debt financing. The study found that 52% of the SMEs examined adjust their financing rationally. Further investigation revealed that under-levered SMEs adjust relatively faster to be at target debt relative to the over-levered counterparts. SMEs that are practicing rational financing behaviour would either reduce or increase their debt intake to reach to their target debt level. This study contributes to the literature and fills the gap by enhancing the understanding of debt financing of SMEs in Malaysia. IEEE 2015-08-25 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/44532/10/44532-Modelling_debt_financing_behaviour_of_Malaysia_SMEs_Fullpaper.pdf application/pdf en http://irep.iium.edu.my/44532/13/44532_Modelling%20debt%20financing_scopus.pdf Haron, Razali (2015) Modelling debt financing behaviour of Malaysia SMEs. In: 2nd International Symposium on Technology Management & Emerging Technologies (ISMET 2015), 25th-27th August 2015, Langkawi Malaysia. http://ieeexplore.ieee.org/xpls/abs_all.jsp?arnumber=7359047 10.1109/ISTMET.2015.7359047
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG4001 Financial management. Business finance. Corporation finance. Haron, Razali Modelling debt financing behaviour of Malaysia SMEs
description	This study models the debt financing behaviour of SMEs (Enterprise 50) in Malaysia to determine the existence of target debt, speed of adjustment and rational financing by utilizing panel data from 2009-2013. The estimated debt financing model revealed certain factors such as profitability, tangibility,business risk, growth, size, liquidity and share price performance significantly influence target debt financing. The study found that 52% of the SMEs examined adjust their financing rationally. Further investigation revealed that under-levered SMEs adjust relatively faster to be at target debt relative to the over-levered counterparts. SMEs that are practicing rational financing behaviour would either reduce or increase their debt intake to reach to their target debt level. This study contributes to the literature and fills the gap by enhancing the understanding of debt financing of SMEs in Malaysia.
format	Conference or Workshop Item
author	Haron, Razali
author_facet	Haron, Razali
author_sort	Haron, Razali
title	Modelling debt financing behaviour of Malaysia SMEs
title_short	Modelling debt financing behaviour of Malaysia SMEs
title_full	Modelling debt financing behaviour of Malaysia SMEs
title_fullStr	Modelling debt financing behaviour of Malaysia SMEs
title_full_unstemmed	Modelling debt financing behaviour of Malaysia SMEs
title_sort	modelling debt financing behaviour of malaysia smes
publisher	IEEE
publishDate	2015
url	http://irep.iium.edu.my/44532/ http://irep.iium.edu.my/44532/ http://irep.iium.edu.my/44532/ http://irep.iium.edu.my/44532/10/44532-Modelling_debt_financing_behaviour_of_Malaysia_SMEs_Fullpaper.pdf http://irep.iium.edu.my/44532/13/44532_Modelling%20debt%20financing_scopus.pdf
first_indexed	2023-09-18T21:03:18Z
last_indexed	2023-09-18T21:03:18Z
_version_	1777410767228764160

Modelling debt financing behaviour of Malaysia SMEs

Similar Items