The influence of managerial characteristics on external financing preferences in smaller enterprises. The case of Malaysian micro-sized enterprises

Previous studies have identified various factors underlying firm financing structure especially in large firms. However, few have attempted to document the reasons for financing preferences among microenterprises in developing countries. Employing a managerial-based theory, this study explores the f...

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Autores principales:	Shafie Mohamed Zabri, Kamilah Ahmad, Siti Azirah Adonia
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2021
Materias:	capital structure microenterprises microfinance entrepreneurial financing smes small business developing country malaysia Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/86187046be7c43d4b45c584cc05f9d5e
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spelling	oai:doaj.org-article:86187046be7c43d4b45c584cc05f9d5e2021-12-02T17:01:03ZThe influence of managerial characteristics on external financing preferences in smaller enterprises. The case of Malaysian micro-sized enterprises2331-197510.1080/23311975.2021.1912524https://doaj.org/article/86187046be7c43d4b45c584cc05f9d5e2021-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2021.1912524https://doaj.org/toc/2331-1975Previous studies have identified various factors underlying firm financing structure especially in large firms. However, few have attempted to document the reasons for financing preferences among microenterprises in developing countries. Employing a managerial-based theory, this study explores the financing preferences of microenterprises and factors that influence their preference towards external financing. Based on 310 valid replies to a questionnaire survey conducted among Malaysian microenterprises, it finds a clear financing hierarchy where internal funding sources are preferred to external finance. It also underscores the important role of external financing sources. Applying structural equation modelling, the study demonstrates that information on external financing, level of internal funding, growth intention, networking ties and owner’s experience exert significant effects on external financing preferences. In addition, business age and the relative location of a business from banks and/or finance agencies appear to have a significant confounding influence on the results. The empirical evidence contributes to the limited but growing literature on financing preferences by revealing the simultaneous effects of managerial characteristics on financing preferences in the context of microenterprises.Shafie Mohamed ZabriKamilah AhmadSiti Azirah AdoniaTaylor & Francis Grouparticlecapital structuremicroenterprisesmicrofinanceentrepreneurial financingsmessmall businessdeveloping countrymalaysiaBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 8, Iss 1 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	capital structure microenterprises microfinance entrepreneurial financing smes small business developing country malaysia Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	capital structure microenterprises microfinance entrepreneurial financing smes small business developing country malaysia Business HF5001-6182 Management. Industrial management HD28-70 Shafie Mohamed Zabri Kamilah Ahmad Siti Azirah Adonia The influence of managerial characteristics on external financing preferences in smaller enterprises. The case of Malaysian micro-sized enterprises
description	Previous studies have identified various factors underlying firm financing structure especially in large firms. However, few have attempted to document the reasons for financing preferences among microenterprises in developing countries. Employing a managerial-based theory, this study explores the financing preferences of microenterprises and factors that influence their preference towards external financing. Based on 310 valid replies to a questionnaire survey conducted among Malaysian microenterprises, it finds a clear financing hierarchy where internal funding sources are preferred to external finance. It also underscores the important role of external financing sources. Applying structural equation modelling, the study demonstrates that information on external financing, level of internal funding, growth intention, networking ties and owner’s experience exert significant effects on external financing preferences. In addition, business age and the relative location of a business from banks and/or finance agencies appear to have a significant confounding influence on the results. The empirical evidence contributes to the limited but growing literature on financing preferences by revealing the simultaneous effects of managerial characteristics on financing preferences in the context of microenterprises.
format	article
author	Shafie Mohamed Zabri Kamilah Ahmad Siti Azirah Adonia
author_facet	Shafie Mohamed Zabri Kamilah Ahmad Siti Azirah Adonia
author_sort	Shafie Mohamed Zabri
title	The influence of managerial characteristics on external financing preferences in smaller enterprises. The case of Malaysian micro-sized enterprises
title_short	The influence of managerial characteristics on external financing preferences in smaller enterprises. The case of Malaysian micro-sized enterprises
title_full	The influence of managerial characteristics on external financing preferences in smaller enterprises. The case of Malaysian micro-sized enterprises
title_fullStr	The influence of managerial characteristics on external financing preferences in smaller enterprises. The case of Malaysian micro-sized enterprises
title_full_unstemmed	The influence of managerial characteristics on external financing preferences in smaller enterprises. The case of Malaysian micro-sized enterprises
title_sort	influence of managerial characteristics on external financing preferences in smaller enterprises. the case of malaysian micro-sized enterprises
publisher	Taylor & Francis Group
publishDate	2021
url	https://doaj.org/article/86187046be7c43d4b45c584cc05f9d5e
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The influence of managerial characteristics on external financing preferences in smaller enterprises. The case of Malaysian micro-sized enterprises

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