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...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2010
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/6367/ http://irep.iium.edu.my/6367/1/Does_Firm_Size_Matter_for_the_Financial_Constraints.pdf |
| _version_ | 1848776654518747136 |
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| author | Ismail , Mohd Adib Ibrahim, Mansor Yusoff, Mohammed Zainal, Mohd-Pisal |
| author_facet | Ismail , Mohd Adib Ibrahim, Mansor Yusoff, Mohammed Zainal, Mohd-Pisal |
| author_sort | Ismail , Mohd Adib |
| building | IIUM 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.
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| first_indexed | 2025-11-14T14:33:32Z |
| format | Article |
| id | iium-6367 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T14:33:32Z |
| publishDate | 2010 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-63672021-07-03T15:57:33Z http://irep.iium.edu.my/6367/ Does firm size matter for the financial constraints? Ismail , Mohd Adib Ibrahim, Mansor Yusoff, Mohammed Zainal, Mohd-Pisal HG4001 Financial management. Business finance. Corporation finance. 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 application/pdf en http://irep.iium.edu.my/6367/1/Does_Firm_Size_Matter_for_the_Financial_Constraints.pdf Ismail , Mohd Adib and Ibrahim, Mansor and Yusoff, Mohammed and Zainal, Mohd-Pisal (2010) Does firm size matter for the financial constraints? Journal Ekonomi Malaysia, 44. pp. 73-81. ISSN 0127-1962 http://www.ukm.my/penerbit |
| spellingShingle | HG4001 Financial management. Business finance. Corporation finance. Ismail , Mohd Adib Ibrahim, Mansor Yusoff, Mohammed Zainal, Mohd-Pisal Does firm size matter for the financial constraints? |
| title | Does firm size matter for the financial constraints?
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| title_full | Does firm size matter for the financial constraints?
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| title_fullStr | Does firm size matter for the financial constraints?
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| title_full_unstemmed | Does firm size matter for the financial constraints?
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| title_short | Does firm size matter for the financial constraints?
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| title_sort | does firm size matter for the financial constraints? |
| topic | HG4001 Financial management. Business finance. Corporation finance. |
| url | http://irep.iium.edu.my/6367/ http://irep.iium.edu.my/6367/ http://irep.iium.edu.my/6367/1/Does_Firm_Size_Matter_for_the_Financial_Constraints.pdf |