How Do SMEs with Single and Multiple Owners Finance Their Operations Differently? Empirical Evidence from China

Newman, Alexander; Borgia, Daniel; Deng, Ziliang

doi:10.1002/tie.21568

Cited by 15 publications

(16 citation statements)

References 42 publications

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“…The results of SMEs in Egypt are quite similar to SMEs in China, as reported by a Newman et al (2013). He pointed out that a significant proportion of Chinese private SMEs is under the control of a single owner, who is typically the founder of the business.…”

Section: Descriptive Analysissupporting

confidence: 67%

“…Similarly, the results of the previous SME studies revealed a higher long term ratios, ranged from 10% to 15% in Malaysia, United Kingdom, Belgium, Spain, Ireland, Netherlands, and Portugal (Shahadan and Hall et al, 2004). Finally, Egyptian SMEs showed average total leverage ratios lower than SMEs in China, which reached 54 % as reported by Newman et al (2013).…”

Section: Descriptive Analysissupporting

confidence: 56%

“…Also, the average size of both quoted and unquoted SMEs was very similar, which may be attributed to using same criteria in selecting the two samples. Newman et al (2013) and reported very similar tangibility ratios of 35% in China and Malaysia. However, they reported a bigger average size than the average of SMEs in Egypt, the LOG size of their samples reached 10.1 and 7.4 respectively, while the average LOG size of Egyptian SMEs reached 4.3 and 3.99 for quoted and unquoted Egyptian SMEs.…”

Section: Descriptive Analysismentioning

confidence: 80%

“…Ownership structure: Two recent studies evidenced that the concentrated ownership in China had a negative relationship with the leverage of SMEs (Newman et al, 2013 andHuang et al, 2016). Conversely, other studies indicated a positive relationship (Cheng et al, 2004 andDriffield et al, 2005).…”

Section: Agementioning

confidence: 99%

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Investigating the Impact of Firm Characteristics on Capital Structure of Quoted and Unquoted SMEs

ELbekpashy¹,

Elgiziry²

2017

AFR

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This study aims to enhance the understanding of SMEs' capital structure in Egypt. The study tests the impact of asset structure (tangibility), size, profitability, liquidity, growth, age, and ownership structure as independent variables on the leverage ratio. Three alternative variables are used as a proxy for leverage: total, long term, and short term leverage. The study further investigates the significance of the relationship between the economic sector as a control variable and the three leverage ratios. Multiple regression analysis is used to develop the explanatory models for two samples of SMEs. The first sample comprises of 28 listed and traded SMEs in Egypt. The second sample includes panel data of 95 non-quoted SMEs. The overall model recommends that all the independent and control variables significantly explain the capital structure decisions of SMEs in Egypt. The results of the analysis of the two samples show a high degree of similarity. The managerial ownership is found to be negatively correlated with short term leverage, while the block holding ownership is positively correlated with the total and the short term leverage. Moreover, the sector shows a significant relationship with the capital structure. The results of the study demonstrate that the financing behavior of SMEs in Egypt is consistent with the pecking order theory. Finally, the study introduces useful recommendations for policy makers and SMEs' management in Egypt.

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Section: Descriptive Analysissupporting

confidence: 67%

Section: Descriptive Analysissupporting

confidence: 56%

Section: Descriptive Analysismentioning

confidence: 80%

Section: Agementioning

confidence: 99%

See 2 more Smart Citations

Investigating the Impact of Firm Characteristics on Capital Structure of Quoted and Unquoted SMEs

ELbekpashy¹,

Elgiziry²

2017

AFR

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“…In microfinance lending, timely repayments are an incentive for repeat credit facilities although in most cases no collateral is required(Ayayi, 2012;Baklouti, 2013). The implication is that MFBs are left with nothing in case of default as the micro-entrepreneurs are not capable of bearing bankruptcy costs(Newman et al, 2013), although access to finance increases risk-bearing abilities, while choice of microfinance lending (debt) is not influenced by risk aversion. Delta had over the years witnessed considerable environmental degra-dation, social disequilibrium and poverty due to decades of ambivalent social, economic and environmental policies, and violence(Bene et al, 2011;Ogundiya, 2011;Renouard and Lado, 2012;Pegg and Zabbey, 2013).…”

mentioning

confidence: 99%

Microfinance banks and small and medium sized enterprises access to finance: the Nigerian experience

Obokoh

Monday

Ojiako

2016

Banks and Bank Systems

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The paper explored the extent to which current microfinance lending impacts on indigenous SME access to finance and how the intermediation services of the microfinance banks (MFBs) contributed to or otherwise to the development of SMEs. A total of 800 such indigenous SMEs were identified, however, data were obtained from 300 of the identified indigenous SMEs from a questionnaire survey in four states (provinces) within the country that make up the Niger Delta region. The result shows positive contribution of microfinance lending to the development of such enterprises. However, it appears that a number of factors including cumbersome process, poorly packaged business plans and perceived high cost of credit still limit the access of indigenous SMEs to credit.

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Application of human resource management's universal model: An examination of people versus institutions as barriers of internationalization for SMEs in a small developing country

Mendy

Rahman

2018

Thunderbird Intl Bus Rev

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Although the importance of people and institutions has been highlighted in multinational enterprise studies, the association between people, institutions, and the internationalization of small to medium-sized enterprise (SMEs) is an underexplored issue from the context of a small developing country. We examine theories subsumed under the Universal Model of human resource management (HRM) onto SMEs to study the hypothesized people and institutionally orientated barriers posed to SMEs' internationalization. Using quantitative analysis, the impacts of the barriers on internationalization are highlighted with particular attention to employer attractiveness. Following extant literature review, this study has used primary data collected through questionnaires from 212 Bangladeshi SMEs. We developed and validated the partial least square-based structural equation model (PLS-SEM) to assess the impacts and successfully framed people versus institutional barriers as a second-order hierarchical reflective model, which has not been done previously. Given their marginal significance over institutions, people-oriented cultural barriers should be included as an extension of the Universal Model to study SME internationalization.

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How Do SMEs with Single and Multiple Owners Finance Their Operations Differently? Empirical Evidence from China

Cited by 15 publications

References 42 publications

Investigating the Impact of Firm Characteristics on Capital Structure of Quoted and Unquoted SMEs

Investigating the Impact of Firm Characteristics on Capital Structure of Quoted and Unquoted SMEs

Microfinance banks and small and medium sized enterprises access to finance: the Nigerian experience

Application of human resource management's universal model: An examination of people versus institutions as barriers of internationalization for SMEs in a small developing country

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