The Effect of Debt Financing on Firm Profitability of Manufacturing Companies in Malaysia

Hasan, Hazaratul Liza bt; Zaidi, Nurul Syuhada Binti; Mohamed, Ahmad Syubaili; Yusof, Suzila; Aris, Nazaria Binti Md.

doi:10.6007/ijarbss/v11-i14/8934

Cited by 5 publications

(6 citation statements)

References 19 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The study was conducted in the Accra Metropolis. As the capital city of Greater Accra region and the most popular city with many firms in manufacturing, the Accra Metropolis forms the major financial, commercial and industrial hub of the country (Akubia and Bruns, 2019; Asare and Angmor, 2015). The Metropolis is also the home to heavy manufacturing industries like textiles, food and beverage, chemical and pharmaceutical, timber and paper manufacturing.…”

Section: Methodsmentioning

confidence: 99%

Supply chain resilience and performance of manufacturing firms: role of supply chain disruption

Asafo−Adjei

Boachie-Mensah

Issau

2023

JMTM

View full text Add to dashboard Cite

PurposeThe current study sought to investigate the moderating effect of supply chain disruptions (SCD) (supply chain – supply disruption, catastrophic disruption and infrastructure disruption) on the relationship between supply chain resilience (SCR) and supply chain performance (SCP) of manufacturing firms in Ghana.Design/methodology/approachThe quantitative research approach and explanatory research designs were utilised. A sample of 345 manufacturing firms were drawn from a population of 2,495 manufacturing firms in the Accra metropolis. The Partial Least Squares Structural Equation Modelling (PLS-SEM) was employed to accomplish the research objectives.FindingsFirst, the study revealed that SCR has a significant positive effect on SCP. Second, the authors found reasonable evidence to support that SCD have a significant positive moderating effect on the relationship between SCR and SCP, except for supply chain catastrophic disruption which had a negative impact. It can be concluded that the components of SCD have heterogeneous impact in the SCR and SCP nexus.Research limitations/implicationsThe study is limited to manufacturing firms in Ghana and does not make a distinction among resilience strategies.Practical implicationsIncreased SCR boost manufacturing companies' supply chains' performance and aid to lessen the adverse effects of SCD relating to infrastructure and supply. It implies that supply chain managers are able to reduce the effects of infrastructure and supply disruptions. Also, techniques that reduce the adverse impact of SCD relating to catastrophe would be beneficial for supply chain managers in Ghana and other countries with comparable economic environments.Originality/valueThe study provides a unique contribution on the moderating role of the dimensions of SCD (supply, infrastructure and catastrophic) on the nexus between SCR and SCP in a developing economy context in a dynamic changing environment. Policymakers would get better insights into instituting the required policies needed to revamp firms with weak supply chains as a result of supply chain disruption.

show abstract

Section: Methodsmentioning

confidence: 99%

Supply chain resilience and performance of manufacturing firms: role of supply chain disruption

Asafo−Adjei

Boachie-Mensah

Issau

2023

JMTM

View full text Add to dashboard Cite

show abstract

Section: Methodsmentioning

confidence: 99%

“…The study was conducted in the Accra Metropolis. As the capital city of Greater Accra region and the most popular city with many firms in manufacturing, the Accra Metropolis forms the major financial, commercial and industrial hub of the country (Akubia and Bruns, 2019;Asare and Angmor, 2015;Amoako et al, 2023). The Metropolis is also the home to heavy manufacturing industries like textiles, food and beverage, chemical and pharmaceutical, timber and paper manufacturing.…”

Section: Overviewmentioning

confidence: 99%

Does technological innovation matter in the nexus between supply chain resilience and performance of manufacturing firms in a developing economy?

Hamidu

Mensah

Issau

et al. 2023

JMTM

View full text Add to dashboard Cite

PurposeDespite the economic growth in Ghana, the manufacturing industry faces numerous challenges in their supply chains. The study aims to investigate the mediated-moderated role of supply chain technological innovation (SCTI) in the relationship between supply chain resilience (SCR) and supply chain performance (SCP) of manufacturing firms. By exploring this relationship, the study seeks to provide insights that can help manufacturing firms overcome the challenges they face and improve their overall supply chain performance.Design/methodology/approachThe quantitative research approach and explanatory research design were utilised. A sample of 345 manufacturing firms was drawn from a population of 2495 manufacturing firms in the Accra metropolis. Analysis of this study was performed using the Partial Least Squares Structural Equation Modelling (PLS-SEM).FindingsIt was revealed that SCTI positively mediates the nexus between SCR and SCP. However, we document that SCTI negatively moderates the nexus. It is instructive to advocate that a mere presence of a more enhanced SCTI is not enough to improve upon SCP of manufacturing firms, but should be a channel through which SCR can improve SCP.Practical implicationsThis study highlights the need for managers of firms to prioritise investment in technological innovation as a means of enhancing SCR and ultimately improving supply chain performance. By understanding the SCTI mediated-moderated relationship between SCR and SCP, supply chain managers, logistics managers, operation managers, as well as procurement managers can develop more effective strategies to optimise their operations. This study provides valuable insights for managers and policymakers in developing and implementing supply chain resilience strategies that take into account the important role of SCTI.Originality/valueThe originality of the study lies in exploring the mediated-moderated effect of technological innovation on the nexus between resilience and performance of supply chains in developing economies, where firms often face unique challenges such as infrastructure limitations, political instability and economic uncertainty. By investigating the interplay of SCTI between SCR and SCP, researchers can develop new insights and strategies to help navigate these challenges and achieve success.

show abstract

“…According to Zoghi (2017), increased productivity provides a cushion against risk rollover vulnerability, which is common in SMEs. Conversely, Asare and Angmor (2015) and Admassu (2016) argued that excessive long-term debt could result in distortions in the risk preferences of the shareholders, while limiting debt accessibility due to the increased cost of debt, which could impact negatively on the financial performance of SMEs.…”

Section: Capital Structure and Financial Performancementioning

confidence: 99%

Capital Structure, Financial Capacity and Financial Performance of Small and Medium Enterprises in the Buganda Region, Uganda

Mugisha¹,

Omagwa²,

Kilika³

2022

jmv

View full text Add to dashboard Cite

The purpose of this research is to diagnose the financial performance of small and medium-sized companies that produce coffee products in Colombia. To this end, information from the 2015-2020 period available from the EMIS Professional database has been analyzed. The methodology of the study examines the accounting and value management indicators that measure its growth, efficiency, efficiency and effectiveness. It is found that the SME grows in sales and assets and achieves an average accounting return. The return for median investors is higher due to their greater efficiency in the use of assets. The return for small business owners is superior by being more efficacious in managing total costs and expenses. However, the SME destroys economic value added (EVA) in four years. In the six-year period, the medium-sized company that generates a negative added market value, being at a disadvantage with the small company that achieves a positive value for this period. The company in the sector is more effective than the SME and creates value every year.

show abstract

The Effect of Debt Financing on Firm Profitability of Manufacturing Companies in Malaysia

Cited by 5 publications

References 19 publications

Supply chain resilience and performance of manufacturing firms: role of supply chain disruption

Supply chain resilience and performance of manufacturing firms: role of supply chain disruption

Does technological innovation matter in the nexus between supply chain resilience and performance of manufacturing firms in a developing economy?

Capital Structure, Financial Capacity and Financial Performance of Small and Medium Enterprises in the Buganda Region, Uganda

Contact Info

Product

Resources

About