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 |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2010
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| Online Access: | http://journalarticle.ukm.my/3374/ |
| _version_ | 1848810171961180160 |
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| author | Mohd Adib Ismail, Mansor H. Ibrahim, Mohammed Yusoff, Mohd-Pisal Zainal, |
| author_facet | Mohd Adib Ismail, Mansor H. Ibrahim, Mohammed Yusoff, Mohd-Pisal Zainal, |
| author_sort | Mohd Adib Ismail, |
| 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. |
| first_indexed | 2025-11-14T23:26:16Z |
| format | Article |
| id | oai:generic.eprints.org:3374 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T23:26:16Z |
| publishDate | 2010 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org: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 |
| spellingShingle | Mohd Adib Ismail, Mansor H. Ibrahim, Mohammed Yusoff, Mohd-Pisal Zainal, Does firm size matter for the financial constraints? |
| title | 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_short | Does firm size matter for the financial constraints? |
| title_sort | does firm size matter for the financial constraints? |
| url | http://journalarticle.ukm.my/3374/ http://journalarticle.ukm.my/3374/ |