Debt Financing Management: The Modes of Debt Financing for Small and Medium-Sized Enterprises (SEMs) in Pakistan

Hameed, Waseem Ul; Mohammad, Hisham Bin; Iqbal, Javed; Razzaq, Shazma; Maqbool, Nadeem

doi:10.52131/jom.2020.0202.0016

Cited by 2 publications

(2 citation statements)

References 6 publications

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“…In India according to Hameed, et al (2020) in his research entitled "Term Debt Finance", he noted that debt maturity structure plays an important growth role in the financial performance of state corporations especially where there exists less long term debt in their capital structure. In Nigeria, A study conducted byZhou, et al, (2021) on the other hand observed that debt finance adds pressure on financial performance on how the state corporations are managed.…”

Section: Statement Of the Problemmentioning

confidence: 99%

Effect of Debt Financing on Financial Performance of Selected State Corporations in Kenya

MWAZITO,

MWANZIA, PhD

2023

strategicjournals.com

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There was a recent interest of state corporations borrowing funds to manage their operations. This begged the question why debt financing was being opted for running state corporations. It was in this regard that this study examined the effect of debt financing on financial performance of selected state corporations in Kenya. The study was guided by the following specific objectives: To determine the effect of bonds on financial performance of selected state corporations, to assess the effect of debentures on financial performance of selected state corporations, to assess the effect of bank loans on financial performance of selected state corporations and to evaluate the effect of factoring on financial performance of selected state corporations. To underpin the study findings, information asymmetry and transaction cost theory was used. The study adopted descriptive survey study design and it had a target 206 state-owned corporations out of which a sample of 136 was drawn from using Yamane's formulae. A structured questionnaire was used to collect information from finance and chief accountants of the selected state-owned corporations. Data analysis was done using SPSS version 26. The analysis indicated there is a strong positive relationship between debt financing and financial performance since. However, the study indicated that there is a medium positive relationship between bonds and financial performance. Further, the study showed that there was a very weak positive relationship between debentures and financial performance. It was clear that analysis indicated that there was a weak positive relationship between bank loans and financial performance. Lastly the study also showed that there was a very weak positive relationship between factoring and financial performance.

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Section: Statement Of the Problemmentioning

confidence: 99%

Effect of Debt Financing on Financial Performance of Selected State Corporations in Kenya

MWAZITO,

MWANZIA, PhD

2023

strategicjournals.com

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“…Islamic banking facilitates SMEs and firms by providing contract base financing involving risk factors, which is managed with different agreements like Murabaha and Ijaraha (Hameed et al, 2020). Martins (2007) discussed numerous indicators that quantify entrepreneurship in an economy.…”

Section: Debt Financingmentioning

confidence: 99%

Contribution of Islamic Debt Financing in Entrepreneurship Promoting Financial Sector Transformation

Sohail

Arshed

2022

IJMRES

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Empirically conventional financial development theories provided mixed results in motivating entrepreneurship. The risk transferring and fixed returns based lending may harm the new venture if the borrower is not financial literate. In comparison, Islamic finance provides a juristic, participative, and equitable alternative for new ventures, which empirically shows growth promoting effects. This study explores the holistic curvilinear effect of financial development on entrepreneurship while allowing the moderating role of rising Islamic debt financing in the economy. This study selected the unbalanced panel data of all Islamic banks of 16 countries and used panel quantile regression to estimate the quadratic financial development effects and moderation of the Islamic debt financing. The results showed that Islamic debt financing provides entrepreneurship support coverage in countries where the financial sector is not fully developed. Central Banks and Islamic advisory councils can follow the outcomes to integrate increasing Islamic financing in the national financial development policy in developing a facilitative environment for new businesses.

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Debt Financing Management: The Modes of Debt Financing for Small and Medium-Sized Enterprises (SEMs) in Pakistan

Cited by 2 publications

References 6 publications

Effect of Debt Financing on Financial Performance of Selected State Corporations in Kenya

Effect of Debt Financing on Financial Performance of Selected State Corporations in Kenya

Contribution of Islamic Debt Financing in Entrepreneurship Promoting Financial Sector Transformation

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