THE IMPACT OF MANAGERIAL CHARACTERISTICS ON CAPITAL STRUCTURE IN MALAYSIAN MANUFACTURING SMES

  • Kuah Yoke Chin
  • Zuriawati Zakaria
  • Choong Chee Keong Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Malaysia

Abstract

Access to capital is a critical factor in stimulating small business creation and growth especially in developing companies. The failure of small business entities in securing the needed capital would entail them remaining small and limit their ability to create goods, services, and innovations in the marketplace, including jobs. This study focuses on manufacturing SMEs by examining the influence of managerial characteristics (age, gender, work experience and level of education) on capital structure towards technology improvement. Based on a survey of 219 respondents, the results indicated that male managers, managers with a lot of work experience and educated managers preferred internal and external financing. Furthermore, internal and external financing also showed positive relationships to improve manufacturing technology performance. This study provides and adds new knowledge to corporate managers to serve as benchmarks in making decisions on company performance. It could also enhance company ability to deal with competitive environments.

 

Published
2020-03-31
How to Cite
CHIN, Kuah Yoke; ZAKARIA, Zuriawati; KEONG, Choong Chee. THE IMPACT OF MANAGERIAL CHARACTERISTICS ON CAPITAL STRUCTURE IN MALAYSIAN MANUFACTURING SMES. International Journal of Banking and Finance, [S.l.], v. 15, n. 1, p. 21-37, mar. 2020. ISSN 1675-722X. Available at: <http://e-journal.uum.edu.my/index.php/ijbf/article/view/9930>. Date accessed: 14 aug. 2020. doi: https://doi.org/10.32890/ijbf2020.15.1.9930.