Does firm size matter for the financial constraints?

This article empirically investigates the presence of financial constraints in the Malaysian capital market. The existence of financial constraints gives firm less access to external funds to finance their investment activities. Therefore, the constrained firm has to rely on internal sources of fina...

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Main Authors:	Mohd Adib Ismail, Mansor H. Ibrahim, Mohammed Yusoff, Mohd-Pisal Zainal
Format:	Article
Published:	Penerbit Universiti Kebangsaan Malaysia 2010
Online Access:	http://journalarticle.ukm.my/3374/ http://journalarticle.ukm.my/3374/

id	ukm-3374
recordtype	eprints
spelling	ukm-33742012-03-20T06:43:03Z http://journalarticle.ukm.my/3374/ Does firm size matter for the financial constraints? Mohd Adib Ismail, Mansor H. Ibrahim, Mohammed Yusoff, Mohd-Pisal Zainal, This article empirically investigates the presence of financial constraints in the Malaysian capital market. The existence of financial constraints gives firm less access to external funds to finance their investment activities. Therefore, the constrained firm has to rely on internal sources of financing. The severity of financial constraints is relatively different according to firm size. Hence, the sample is divided into large and small firm subsamples. Using the Q model of investment, the results show that financial constraints are present in the Malaysian market using the full sample. The subsample results however show that large firms are not financially constrained. On the other hand, the smaller firms are facing the constraints in their investment decisions. Penerbit Universiti Kebangsaan Malaysia 2010-12 Article PeerReviewed Mohd Adib Ismail, and Mansor H. Ibrahim, and Mohammed Yusoff, and Mohd-Pisal Zainal, (2010) Does firm size matter for the financial constraints? Jurnal Ekonomi Malaysia, 44 . ISSN 0127-1962 http://www.ukm.my/penerbit/JEM/JEM-44-07-abstrak.html
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
description	This article empirically investigates the presence of financial constraints in the Malaysian capital market. The existence of financial constraints gives firm less access to external funds to finance their investment activities. Therefore, the constrained firm has to rely on internal sources of financing. The severity of financial constraints is relatively different according to firm size. Hence, the sample is divided into large and small firm subsamples. Using the Q model of investment, the results show that financial constraints are present in the Malaysian market using the full sample. The subsample results however show that large firms are not financially constrained. On the other hand, the smaller firms are facing the constraints in their investment decisions.
format	Article
author	Mohd Adib Ismail, Mansor H. Ibrahim, Mohammed Yusoff, Mohd-Pisal Zainal,
spellingShingle	Mohd Adib Ismail, Mansor H. Ibrahim, Mohammed Yusoff, Mohd-Pisal Zainal, Does firm size matter for the financial constraints?
author_facet	Mohd Adib Ismail, Mansor H. Ibrahim, Mohammed Yusoff, Mohd-Pisal Zainal,
author_sort	Mohd Adib Ismail,
title	Does firm size matter for the financial constraints?
title_short	Does firm size matter for the financial constraints?
title_full	Does firm size matter for the financial constraints?
title_fullStr	Does firm size matter for the financial constraints?
title_full_unstemmed	Does firm size matter for the financial constraints?
title_sort	does firm size matter for the financial constraints?
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2010
url	http://journalarticle.ukm.my/3374/ http://journalarticle.ukm.my/3374/
first_indexed	2023-09-18T19:38:39Z
last_indexed	2023-09-18T19:38:39Z
_version_	1777405441167327232

Does firm size matter for the financial constraints?

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