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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| Online Access: | http://psasir.upm.edu.my/id/eprint/17010/1/17010.pdf |
| _version_ | 1825945926853722112 |
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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 |
| collection | UPM |
| 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 | 2024-03-06T07:39:07Z |
| format | Article |
| id | upm.eprints-17010 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T07:39:07Z |
| publishDate | 2010 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | dspace |
| spelling | upm.eprints-170102016-02-02T03:59:23Z http://psasir.upm.edu.my/id/eprint/17010/ Does firm size matter for the financial constraints? Ismail, Mohd Adib Ibrahim, Mansor Yusoff, Mohammed Zainal, Mohd Pisal 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 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/17010/1/17010.pdf Ismail, Mohd Adib and Ibrahim, Mansor and Yusoff, Mohammed and Zainal, Mohd Pisal (2010) Does firm size matter for the financial constraints? Jurnal Ekonomi Malaysia, 44. pp. 73-81. ISSN 0126-1962 http://www.ukm.my/fep/jem/content/2010.html |
| spellingShingle | 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? |
| 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://psasir.upm.edu.my/id/eprint/17010/1/17010.pdf |
| work_keys_str_mv | AT ismailmohdadib doesfirmsizematterforthefinancialconstraints AT ibrahimmansor doesfirmsizematterforthefinancialconstraints AT yusoffmohammed doesfirmsizematterforthefinancialconstraints AT zainalmohdpisal doesfirmsizematterforthefinancialconstraints |