Kesan Sumber Pembiayaan Ekuiti dan Hutang ke atas Prestasi Perniagaan PKS di Malaysia
DOI:
https://doi.org/10.11113/sh.v2n1.388Keywords:
Source of equity financing, source of debt financing, business performance, small medium enterprise (SME)Abstract
Efficient use of capital resources that catalyze the sustainability of the business. Some theories and previous empirical studies have proved a source of business capital financing affect business performance. Although the source of business capital are seen as crucial to the performance of the business, but it continues to be a problem for Malaysia Small Medium Enterprise (SME) firms. Therefore, this research aims to study and verify the relationship business capital resources of equity and debt on the business performance of SMEs in Malaysia. This study used cluster probability sampling techniques and data collection strategies by mail. The study also involved a sample of 177 SMEs’ firms in Malaysia, comprising manufacturing and agricultural sectors. Two objectives and hypotheses were developed and submitted for analysis. Methods of regression analysis and descriptive analysis of the mean was used to determine the objectives and proposed further studies. The findings showed that the source of equity financing has significantly positive relation to the performance of the business while debt financing sources are not significant. In conclusion, this study provides additional knowledge to the field of research that the use of primary data in the context of this research on SMEs in Malaysia are appropriate. This study also provides additional information to the management of SMEs so that to focus on the source of equity financing factor which can have a positive impact on business performance.
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