Size effect, financial characteristics and insolvency profiles among the SMEs in Malaysia / Maran Marimuthu and Indraah Kolandaisamy

This study makes an attempt to analyze the effect of size on financial characteristics and insolvency of small medium enterprises. The conceptual framework is designed using the right measures, variables, concepts and models. A total sample of 229 businesses is considered consisting of small (57), m...

Full description

Bibliographic Details
Main Authors: Marimuthu, Maran, Kolandaisamy, Indraah
Format: Article
Language:English
Published: Universiti Teknologi MARA, Perlis 2011
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/33739/
_version_ 1848808362854055936
author Marimuthu, Maran
Kolandaisamy, Indraah
author_facet Marimuthu, Maran
Kolandaisamy, Indraah
author_sort Marimuthu, Maran
building UiTM Institutional Repository
collection Online Access
description This study makes an attempt to analyze the effect of size on financial characteristics and insolvency of small medium enterprises. The conceptual framework is designed using the right measures, variables, concepts and models. A total sample of 229 businesses is considered consisting of small (57), medium (111) and large (61) SMEs. Non-parametric statistical techniques are used for empirical testing. The results indicate that size effect is significant only on profitability measures. There are no significant differences among the small, medium and large SMEs with regard to insolvency scores. In general, about 55 per cent of the large SMEs fall under the bankruptcy category, as compared to 39 per cent of the small SMEs and about 47 per cent of the medium SMEs. Large SMEs face greater financial risk and thus, face greater insolvency.
first_indexed 2025-11-14T22:57:31Z
format Article
id uitm-33739
institution Universiti Teknologi MARA
institution_category Local University
language English
last_indexed 2025-11-14T22:57:31Z
publishDate 2011
publisher Universiti Teknologi MARA, Perlis
recordtype eprints
repository_type Digital Repository
spelling uitm-337392020-08-25T07:07:40Z https://ir.uitm.edu.my/id/eprint/33739/ Size effect, financial characteristics and insolvency profiles among the SMEs in Malaysia / Maran Marimuthu and Indraah Kolandaisamy jurnalintelek Marimuthu, Maran Kolandaisamy, Indraah Small business. Medium-sized business Financial management. Business finance. Corporation finance This study makes an attempt to analyze the effect of size on financial characteristics and insolvency of small medium enterprises. The conceptual framework is designed using the right measures, variables, concepts and models. A total sample of 229 businesses is considered consisting of small (57), medium (111) and large (61) SMEs. Non-parametric statistical techniques are used for empirical testing. The results indicate that size effect is significant only on profitability measures. There are no significant differences among the small, medium and large SMEs with regard to insolvency scores. In general, about 55 per cent of the large SMEs fall under the bankruptcy category, as compared to 39 per cent of the small SMEs and about 47 per cent of the medium SMEs. Large SMEs face greater financial risk and thus, face greater insolvency. Universiti Teknologi MARA, Perlis 2011-12 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/33739/1/33739.pdf Marimuthu, Maran and Kolandaisamy, Indraah (2011) Size effect, financial characteristics and insolvency profiles among the SMEs in Malaysia / Maran Marimuthu and Indraah Kolandaisamy. (2011) Jurnal Intelek <https://ir.uitm.edu.my/view/publication/Jurnal_Intelek.html>, 6 (2). pp. 113-123. ISSN 2682-9223 https://jurnalintelek.uitm.edu.my/index.php/main
spellingShingle Small business. Medium-sized business
Financial management. Business finance. Corporation finance
Marimuthu, Maran
Kolandaisamy, Indraah
Size effect, financial characteristics and insolvency profiles among the SMEs in Malaysia / Maran Marimuthu and Indraah Kolandaisamy
title Size effect, financial characteristics and insolvency profiles among the SMEs in Malaysia / Maran Marimuthu and Indraah Kolandaisamy
title_full Size effect, financial characteristics and insolvency profiles among the SMEs in Malaysia / Maran Marimuthu and Indraah Kolandaisamy
title_fullStr Size effect, financial characteristics and insolvency profiles among the SMEs in Malaysia / Maran Marimuthu and Indraah Kolandaisamy
title_full_unstemmed Size effect, financial characteristics and insolvency profiles among the SMEs in Malaysia / Maran Marimuthu and Indraah Kolandaisamy
title_short Size effect, financial characteristics and insolvency profiles among the SMEs in Malaysia / Maran Marimuthu and Indraah Kolandaisamy
title_sort size effect, financial characteristics and insolvency profiles among the smes in malaysia / maran marimuthu and indraah kolandaisamy
topic Small business. Medium-sized business
Financial management. Business finance. Corporation finance
url https://ir.uitm.edu.my/id/eprint/33739/
https://ir.uitm.edu.my/id/eprint/33739/