The Moderating Role of Firm Size to Capital Structure-Financial Performance Relationship: A Panel Data Approach

Fatima, Ummara; Bashir, Uzma

doi:10.1007/978-3-030-62171-1_3

Cited by 3 publications

(2 citation statements)

References 28 publications

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“…The SME individual resources of owner-manager are more important for funding options in the initial stages of development compared to other financing choices like loans from banks and excess funds. Fatima and Bashir (2021) examined the evaluation of the impact of the company size in the accessibility of financing towards the business was evaluated through an additional angle. Businesses asserted that firms expand, and companies obtain a greater capacity for growing the number of financial institutions through credits.…”

Section: Age and Sizementioning

confidence: 99%

Surveying the crucial role of financial management in small and medium enterprises

Nanda,

Rani,

Karnik

et al. 2024

Multidiscip. Rev.

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Financial management plays a vital role in the success and sustainability of Small and Medium Enterprises (SMEs). The unique challenges faced by SMEs demand a comprehensive understanding of financial strategies and practices to navigate the complexities of the business landscape. This paper discusses about SMEs and executes financial decisions and performs in larger organizations. The main objective to examine the literature on SME sources of financing, and implement the account of SMEs and characteristics of owner-manager. SME financial decisions must be explored to understand the intricate relationships and determine the industry's financial contributions. The study desires to provide significant knowledge through investigating the intricate relationship among the characteristics of SMEs and various traits exhibited by their managers and owners. This knowledge was utilized to influence the policy structures, financial organizations and stakeholders involved in supporting SMEs. The SMEs represent an integral part of generating national economic growth was essential to possess comprehensive knowledge of financial circumstances. This information was essential to create a context that supports business management, supports creativity and enables equitable economic growth.

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Section: Age and Sizementioning

confidence: 99%

Surveying the crucial role of financial management in small and medium enterprises

Nanda,

Rani,

Karnik

et al. 2024

Multidiscip. Rev.

View full text Add to dashboard Cite

show abstract

“…Although relationships among capital structure, firm size, and performance have been extensively studied (Fatima & Bashir, 2021;Muzir, 2011), the distinction between formal and informal sources in capital structure, especially for SMEs, is still fragmented and in its nascency. This results in a gap in our understanding of how informal financing impacts the success of SMEs.…”

Section: Introductionmentioning

confidence: 99%

Relationship of Precrisis Financial Decisions With the Financial Distress and Performance of Small- and Medium-Sized Restaurants During COVID-19

Sharma

Lee

Lin

2023

Cornell Hospitality Quarterly

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Based on the trade-off theory of capital structure and the information asymmetry theory of business financing, we evaluated the association of informal financing with the financial performance of small- and medium-sized enterprises (SMEs) in the restaurant industry. This study collected survey responses directly from small- and medium-sized restaurant owners ( n = 178) during the COVID-19 pandemic. The findings of the study suggested that reliance on “family, friends, relatives, and third-party lenders” for financing was associated with lower financial performance during a crisis for restaurants. Results were robust when controlled for the owner’s gender, business affiliation, firm age, and relative firm size. Furthermore, we also found that the relative firm size of SMEs moderated this relationship such that, for mid-sized firms ($2–5 million annual revenues), the negative association with financial performance was lower than that for smaller firms (<$2 million annual revenue) and larger firms (>$5 million annual revenues). This article theoretically contributes to the literature by investigating the influence of informal financing on a firm’s performance, and the role of relative firm size within the category of SMEs in this relationship. Findings from the study provide practical guidance for SMEs and informal lenders.

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The Impact of Size on the Performance of Transnational Corporations Operating in the Textile Industry in Portugal during the COVID-19 Pandemic

Santos

Castanho

2022

Sustainability

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The aim of this work is to understand the impact of size on the performance of transnational corporations (TNCs) operating in the textile and clothing industry in Portugal during the COVID-19 pandemic. For this purpose, we used ORBIS data for the period 2019–2020 and narrative, financial and correlation analyses to assess the performance of five companies. Thus far, the impact of company size on the competitiveness of Portuguese textile affiliates during the pandemic has remained unexplored. The results show that smaller firms performed better than larger ones, likely due to the higher fixed costs of the latter at times when orders declined worldwide. Our analysis suggests that there are some characteristics of TNCs that matter in explaining company-level performance during crises, such as management experience and flexibility. Furthermore, as Portugal is a major European textile exporter, it is useful for the host country to assess the economic sustainability of its foreign investors. The results provide some policy recommendations regarding the promotion of foreign direct investment (FDI) in Portugal.

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The Moderating Role of Firm Size to Capital Structure-Financial Performance Relationship: A Panel Data Approach

Cited by 3 publications

References 28 publications

Surveying the crucial role of financial management in small and medium enterprises

Surveying the crucial role of financial management in small and medium enterprises

Relationship of Precrisis Financial Decisions With the Financial Distress and Performance of Small- and Medium-Sized Restaurants During COVID-19

The Impact of Size on the Performance of Transnational Corporations Operating in the Textile Industry in Portugal during the COVID-19 Pandemic

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