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Effects of equity and debt financing on SME performance in Malaysia

Mohd Saad, Rosli and Abdul Ghani, Abdullah and Ahmad, Shuhymee and Syed Salim, Syed Mohd Naim (2014) Effects of equity and debt financing on SME performance in Malaysia. In: International SME Conference (ISMEC 2014), 18 to 19 August 2014, Kuala Lumpur.

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Abstract

This study is to examine and verify the existence of relationship between the source of capital via equity and debt financing, and the performance of small and medium enterprise (hereafter SME) in Malaysia.The study is run based on of postal survey using cluster sampling method. It comprises of 177 samples of Malaysian SMEs involving in manufacturing and agriculture sectors. Subsequently, two research hypotheses are developed and analysed.It is found that equity financing has significant positive relationship on the business performance, while debt financing is insignificant.The study suggests that SMEs in Malaysia to employ equity financing as a source of business capital, for its potential (capability) in affecting the performance of business.

Item Type: Conference or Workshop Item (Paper)
Additional Information: ISBN: 978-983-42220-4-8 Organised by: School of Economics, Finance and Banking, Universiti Utara Malaysia
Uncontrolled Keywords: Equity financing, debt financing, business performance, small and medium enterprise (SME)
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Divisions: Othman Yeop Abdullah Graduate School of Business
Depositing User: Dr. Rosli Mohd Saad
Date Deposited: 13 Oct 2015 02:19
Last Modified: 06 Dec 2016 06:22
URI: https://repo.uum.edu.my/id/eprint/15713

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