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...
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| Format: | Proceeding Paper |
| Language: | English English |
| Published: |
IEEE
2015
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| Online Access: | 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 |
| _version_ | 1848782621616635904 |
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| author | Haron, Razali |
| author_facet | Haron, Razali |
| author_sort | Haron, Razali |
| building | IIUM Repository |
| collection | Online Access |
| 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. |
| first_indexed | 2025-11-14T16:08:22Z |
| format | Proceeding Paper |
| id | iium-44532 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T16:08:22Z |
| publishDate | 2015 |
| publisher | IEEE |
| recordtype | eprints |
| repository_type | Digital Repository |
| 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 Proceeding Paper 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 |
| spellingShingle | HG4001 Financial management. Business finance. Corporation finance. Haron, Razali Modelling debt financing behaviour of Malaysia SMEs |
| title | 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_short | Modelling debt financing behaviour of Malaysia SMEs |
| title_sort | modelling debt financing behaviour of malaysia smes |
| topic | HG4001 Financial management. Business finance. Corporation finance. |
| 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 |