Does firm size matter for the financial constraints?

Mohd Adib Ismail, Mansor H. Ibrahim, Mohammed Yusoff, Mohd Pisal Zainal

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

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.

Original languageEnglish
Pages (from-to)73-81
Number of pages9
JournalJurnal Ekonomi Malaysia
Volume44
Issue number1
Publication statusPublished - 2010

Fingerprint

Firm size
Financial constraints
Large firms
Small firms
Capital markets
Financing
Investment activity
Investment decision
Finance
Severity

Keywords

  • Cash flow
  • Financial constraints
  • GMM
  • Investment
  • Q-model

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)

Cite this

Ismail, M. A., Ibrahim, M. H., Yusoff, M., & Zainal, M. P. (2010). Does firm size matter for the financial constraints? Jurnal Ekonomi Malaysia, 44(1), 73-81.

Does firm size matter for the financial constraints? / Ismail, Mohd Adib; Ibrahim, Mansor H.; Yusoff, Mohammed; Zainal, Mohd Pisal.

In: Jurnal Ekonomi Malaysia, Vol. 44, No. 1, 2010, p. 73-81.

Research output: Contribution to journalArticle

Ismail, MA, Ibrahim, MH, Yusoff, M & Zainal, MP 2010, 'Does firm size matter for the financial constraints?', Jurnal Ekonomi Malaysia, vol. 44, no. 1, pp. 73-81.
Ismail, Mohd Adib ; Ibrahim, Mansor H. ; Yusoff, Mohammed ; Zainal, Mohd Pisal. / Does firm size matter for the financial constraints?. In: Jurnal Ekonomi Malaysia. 2010 ; Vol. 44, No. 1. pp. 73-81.
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