Journals Information
Universal Journal of Accounting and Finance Vol. 10(1), pp. 131 - 136
DOI: 10.13189/ujaf.2022.100114
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An Analysis of Malaysian SMEs' Access to Public Financial Assistance
Ijaz Ali 1, Asma Khatoon 2, Ashraf Imam 3, Asif Baig 4, Odunayo Magret Olarewaju 5, Imran Ahmad Khan 6,*
1 College of Business and Management, Fahad Bin Sultan University, Tabuk, Saudi Arabia
2 College of Business Administration, Imam Abdulrahman Bin Faisal University, Dammam, Saudi Arabia
3 Consultant, IIMEDU, UK
4 Jubail University College, Jubail Industrial City, Jubail, Saudi Arabia
5 Department of Management Accounting, Faculty of Accounting and Informatics, Durban University of Technology, South Africa
6 Researcher and Consultant, Creative Heads Consultants, India
ABSTRACT
The purpose of this paper is to identify the types of firms for which government financial support for SMEs is provided in Malaysia. The financial data of privately held and publicly traded companies are used and a probit model is estimated with qualitative variables as explained variables. The estimation results of the probit model reveal that the more Bumiputras are included as the ethnic composition of the board of directors. The more support they have received, the more fixed assets a company has, and the more support it receives. Firms with poor corporate performance tend to be more likely to receive financial assistance. Since the length of operation and ROE are not statistically significant, length of operation and ROE do not seem to have a significant effect on government financial support. The study finds that government financial support through development finance institutions is related to the ethnic composition of the board members. And the more difficult it is for SMEs to borrow from banks on a commercial basis, the more government financial support they receive.
KEYWORDS
SMEs, Return on Assets, Return on Equity, Loans, Financial Assistance
Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Ijaz Ali , Asma Khatoon , Ashraf Imam , Asif Baig , Odunayo Magret Olarewaju , Imran Ahmad Khan , "An Analysis of Malaysian SMEs' Access to Public Financial Assistance," Universal Journal of Accounting and Finance, Vol. 10, No. 1, pp. 131 - 136, 2022. DOI: 10.13189/ujaf.2022.100114.
(b). APA Format:
Ijaz Ali , Asma Khatoon , Ashraf Imam , Asif Baig , Odunayo Magret Olarewaju , Imran Ahmad Khan (2022). An Analysis of Malaysian SMEs' Access to Public Financial Assistance. Universal Journal of Accounting and Finance, 10(1), 131 - 136. DOI: 10.13189/ujaf.2022.100114.