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

Marimuthu, Maran and Kolandaisamy, Indraah (2011) Size effect, financial characteristics and insolvency profiles among the SMEs in Malaysia / Maran Marimuthu and Indraah Kolandaisamy. Jurnal Intelek, 6 (2). pp. 113-123. ISSN 2682-9223

Download

[thumbnail of 33739.pdf] Text
33739.pdf

Download (352kB)

Abstract

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.

Metadata

Item Type: Article
Creators:
Creators
Email
Marimuthu, Maran
UNSPECIFIED
Kolandaisamy, Indraah
UNSPECIFIED
Subjects: H Social Sciences > HD Industries. Land use. Labor > Small business. Medium-sized business
H Social Sciences > HG Finance > Financial management. Business finance. Corporation finance
Divisions: Universiti Teknologi MARA, Perlis > Arau Campus
Journal or Publication Title: Jurnal Intelek
UiTM Journal Collections: UiTM Journal > Jurnal Intelek (JI)
ISSN: 2682-9223
Volume: 6
Number: 2
Page Range: pp. 113-123
Official URL: https://jurnalintelek.uitm.edu.my/index.php/main
Item ID: 33739
Uncontrolled Keywords: SMEs, size, insolvency
URI: https://ir.uitm.edu.my/id/eprint/33739

ID Number

33739

Indexing


View in Google Scholar

Edit Item
Edit Item