Discouraged borrowers : evidence from Malaysian SMEs

Discouraged borrowers : evidence from Malaysian SMEs

Small and medium-sized enterprises (SMEs) contribute substantially to the nation’s economic growth. Loan from banks have been the most common form of financing among SMEs due to limited internal generated fund. However, obtaining financing from banks is mostly challenging to many SMEs. In Malaysia,...

Full description

Saved in:
Bibliographic Details
Main Author: Ropidah, Omar
Format: Thesis
Language:eng
eng
Published: 2018
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/7740/1/Depositpermission_s92039.pdf
https://etd.uum.edu.my/7740/2/s92039_01.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-uum-etd.7740
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Wan Hussin, Wan Nordin
topic HG Finance
spellingShingle HG Finance
Ropidah, Omar
Discouraged borrowers : evidence from Malaysian SMEs
description Small and medium-sized enterprises (SMEs) contribute substantially to the nation’s economic growth. Loan from banks have been the most common form of financing among SMEs due to limited internal generated fund. However, obtaining financing from banks is mostly challenging to many SMEs. In Malaysia, there were bundles of bank loan facilities offered by many financial institutions. This fact is affirmed by the World Bank that Malaysia has been the top-ranked country to provide ease of obtaining credit for six consecutive years from 2008 to 2013. The aim of this study is to identify the characteristics of SMEs and other factors that discouraged them from applying bank loans. This study considers the borrowers (SMEs) perspective instead of the loan provider as cited by most literatures. A total of 1,425 self-administered questionnaires were distributed to a randomly selected sample of Malaysian SMEs registered with SME Corporations, covering all the four regions in West Malaysia. The number of usable questionnaires was 110 responses, yielding about 12.67 percent response rate. The discouraged borrower model in this study was tested using logistic regression analysis. The results indicate that size and age of the SMEs are significant predictors of SMEs being discouraged from applying for bank loan. Gender, experience and ethnicity of the owner/manager of the SMEs are also significantly related to their discouragement. Finally, the application costs that includes financial, in-kind and psychic costs are also significant determinants of SMEs discouraged from applying for bank loan. The results of this study support the Theory of Discouraged Borrowers hence contributes useful input to bankers or loan providers in considering small and opaque firms in marketing their services. Additionally, this study also shed some lights to policy makers in their effort to encourage bankers to provide easily obtainable loan to SMEs or such groups.
format Thesis
qualification_name Ph.D.
qualification_level Doctorate
author Ropidah, Omar
author_facet Ropidah, Omar
author_sort Ropidah, Omar
title Discouraged borrowers : evidence from Malaysian SMEs
title_short Discouraged borrowers : evidence from Malaysian SMEs
title_full Discouraged borrowers : evidence from Malaysian SMEs
title_fullStr Discouraged borrowers : evidence from Malaysian SMEs
title_full_unstemmed Discouraged borrowers : evidence from Malaysian SMEs
title_sort discouraged borrowers : evidence from malaysian smes
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2018
url https://etd.uum.edu.my/7740/1/Depositpermission_s92039.pdf
https://etd.uum.edu.my/7740/2/s92039_01.pdf
_version_ 1747828257448787968
spelling my-uum-etd.77402021-08-11T06:50:38Z Discouraged borrowers : evidence from Malaysian SMEs 2018 Ropidah, Omar Wan Hussin, Wan Nordin Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance Small and medium-sized enterprises (SMEs) contribute substantially to the nation’s economic growth. Loan from banks have been the most common form of financing among SMEs due to limited internal generated fund. However, obtaining financing from banks is mostly challenging to many SMEs. In Malaysia, there were bundles of bank loan facilities offered by many financial institutions. This fact is affirmed by the World Bank that Malaysia has been the top-ranked country to provide ease of obtaining credit for six consecutive years from 2008 to 2013. The aim of this study is to identify the characteristics of SMEs and other factors that discouraged them from applying bank loans. This study considers the borrowers (SMEs) perspective instead of the loan provider as cited by most literatures. A total of 1,425 self-administered questionnaires were distributed to a randomly selected sample of Malaysian SMEs registered with SME Corporations, covering all the four regions in West Malaysia. The number of usable questionnaires was 110 responses, yielding about 12.67 percent response rate. The discouraged borrower model in this study was tested using logistic regression analysis. The results indicate that size and age of the SMEs are significant predictors of SMEs being discouraged from applying for bank loan. Gender, experience and ethnicity of the owner/manager of the SMEs are also significantly related to their discouragement. Finally, the application costs that includes financial, in-kind and psychic costs are also significant determinants of SMEs discouraged from applying for bank loan. The results of this study support the Theory of Discouraged Borrowers hence contributes useful input to bankers or loan providers in considering small and opaque firms in marketing their services. Additionally, this study also shed some lights to policy makers in their effort to encourage bankers to provide easily obtainable loan to SMEs or such groups. 2018 Thesis https://etd.uum.edu.my/7740/ https://etd.uum.edu.my/7740/1/Depositpermission_s92039.pdf text eng public https://etd.uum.edu.my/7740/2/s92039_01.pdf text eng public https://sierra.uum.edu.my/record=b1698970~S1 Ph.D. doctoral Universiti Utara Malaysia Abdullah, A. (2010). Measuring TQM implementation: A case study of Malaysian SMEs. Business Excellence, 14(3), 3–15. Ahsan, A. A. (2009, April 17). PKS: Lebih mudah dapat biaya. Utusan Malaysia. Kuala Lumpur. Ajagbe, M. A., Long, C. S., Aslan, S. A., & Ismail, K. (2012). Investment in Technology Based Small and Medium Sized Firms in Malaysia: Roles for Commercial Banks. International Journal of Research in Management & Technology, 2(2), 147–153. Alam, S. S. (2009). Adoption of internet in Malaysian SMEs. Journal of Small Business and Enterprise Development, 16(2), 240–255. Allee, K. D., & Yohn, T. L. (2009). The demand for financial statements in an unregulated environment: An examination of the production and use of financial statements by privately held small businesses. The Accounting Review, 84(1), 1–25. http://doi.org/10.2308/aecr.2009.84.1.1 Angelini, P., Salvo, R. D., & Ferri, G. (1998). Availability and cost of credit for small businesses : Customer relationships and credit cooperatives. Journal of Banking & Finance, 22, 925–954. Angilella, S., & Mazzu, S. (2015). The financing of innovative SMEs : A multicriteria credit rating model. European Journal of Operational Research, 244, 540–554. http://doi.org/10.1016/j.ejor.2015.01.033 Anuar, A., & Yusuff, R. M. (2011). Manufacturing best practices in Malaysian small and medium enterprises (SMEs). Benchmarking: An International Journal, 18(3), 324–341. http://doi.org/10.1108/14635771111137750 Ardic, P. O., Mylenko, N., & Saltane, V. (2012). Access to finance by small and medium enterprises: A cross-country analysis with a new data set. Pacific Economic Review, 17(4), 491–513. http://doi.org/10.1111/j.1468-0106.2012.00596.x Arenius, P., & Autio, E. (2006). Financing of small businesses: Are Mars and Venus more alike than different? Venture Capital, 8(2), 93–107. http://doi.org/10.1080/13691060500433793 Aris, N. M. (2006). SMEs : Building blocks for economic growth. In National Statistics Conference Department of Statistics , Malaysia (pp. 1–13). Astebro, T., & Bernhardt, I. (2003). Start-up financing, owner characteristics, and survival. Journal of Economics and Business, 55(4), 303–319. http://doi.org/10.1016/S0148-6195(03)00029-8 Aziz, Y. A., Awang, K. W., & Zaiton, S. (2012). Challenges faced by micro, small, and medium lodgings in Kelantan, Malaysia. International Journal of Economics and Management, 6(1), 167–190. Baas, T., & Schrooten, M. (2006). Relationship Banking and SMEs: A Theoretical Analysis. Small Business Economics, 27, 127–137. Baker, S. (2002). The complete idiot’s guide to business statistics. New York: Penguin Group. Bandura, A. (1989). Human agency in social cognitive theory. The American Psychologist, 44(9), 1175–1184. http://doi.org/10.1037/0003-066x.44.9.1175 Bandura, A. (1991). Social cognitive theory of self-regulation. Organizational Behavior and Human Decision Processes, 50, 248–287. Bandura, A. (1993). Perceived self-efficacy in cognitive development and functioning. Educational Psychologist, 28(2), 117–148. Bandura, A. (2001). Social cognitive theory: An agentic perspective. Annual Review of Psychology, 52, 1–26. http://doi.org/10.1146/annurev.psych.52.1.1 Bank Negara Malaysia. (2017). Financial Inclusion Data for Malaysia. Kuala Lumpur. Retrieved from http://www.bnm.gov.my/index.php?ch=fi&pg=fi_download&ac=445&lang=en Bates, T. (1991). Commercial bank financing of white and black-owned small business start-ups. Quarterly Review of Economic and Business, 31(1), 64–80. Bates, T., & Robb, A. (2013). Greater access to capital is needed to unleash the local economic development potential of minority-owned businesses. Economic Development Quarterly, 27(3), 250–259. http://doi.org/10.1177/0891242413477188 Bates, T., & Robb, A. (2015). Has the Community Reinvestment Act increased loan availability among small businesses operating in minority neighbourhoods? Urban Studies, 52(9), 1702–1721. http://doi.org/10.1177/0042098014534903 Bates, T., & Robb, A. (2016). Impacts of owner race and geographic context on access to small-business financing. Economic Development Quarterly, 30(2), 159–170. http://doi.org/10.1177/0891242415620484 Bauwhede, H. V., De Meyere, M., & Cauwenberge, P. V. (2015). Financial reporting quality and the cost of debt of SMEs. Small Business Economics, 45(1), 149–164. http://doi.org/10.1007/s11187-015-9645-1 Beaten, D. E., Bombardier, C., Guillemin, F., & Ferraz, M. B. (2000). Guidelines for the process of Cross Cultural adaptation of Self Report mesures. Spine, 25(24), 3186–3191. http://doi.org/10.1097/00007632-200012150-00014 Beattie, V., McInnes, B., & Fearnley, S. (2004). A methodology for analysing and evaluating narratives in annual reports: A comprehensive descriptive profile and metrics for disclosure quality attributes. Accounting Forum, 28(3), 205–236. http://doi.org/10.1016/j.accfor.2004.07.001 Beck, T., & Demirguc-Kunt, A. (2006). Small and medium-size enterprises: Access to finance as a growth constraint. Journal of Banking & Finance, 30(11), 2931–2943. http://doi.org/10.1016/j.jbankfin.2006.05.009 Beck, T., Lu, L., & Yang, R. (2015). Finance and growth for microenterprises: Evidence from rural China. World Development, 67(71103038), 38–56. http://doi.org/10.1016/j.worlddev.2014.10.008 Berger, A. N., & Frame, W. S. (2007). Small business credit scoring and credit availability. Journal of Small Business Management, 45(1), 5–22. http://doi.org/10.1111/j.1540-627X.2007.00195.x Berger, A. N., Klapper, L. F., & Udell, G. F. (2001). The ability of banks to lend to informationally opaque small businesses. Journal of Banking & Finance, 25(12), 2127–2167. http://doi.org/10.1016/S0378-4266(01)00189-3 Berger, A. N., & Udell, G. F. (1990). Collateral, loan quality and bank risk. Journal of Monetary Economics, 25, 21–42. Berger, A. N., & Udell, G. F. (1995). Relationship lending and lines of credit in small firm finance. Journal of Business, 68(3), 351–381. Berger, A. N., & Udell, G. F. (1998). The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle. Journal of Banking and Finance, 22, 873–897. BERNAMA. (2008, July 9). Bank Negara urges banks to seek out SME customers in difficulties. Bharath, S., Dahiya, S., Saunders, A., & Srinivasan, A. (2007). So what do I get? The bank’s view of lending relationships. Journal of Financial Economics, 85(2), 368–419. http://doi.org/10.1016/j.jfineco.2005.08.003 Blanchard, L., Zhao, B., & Yinger, J. (2008). Do lenders discriminate against minority and woman entrepreneurs? Journal of Urban Economics, 63(2), 467–497. http://doi.org/10.1016/j.jue.2007.03.001 Blanchflower, D. G., Levine, P. B., & Zimmerman, D. J. (1998). Discrimination in the small business credit market (6840). Bliss, M. A., & Gul, F. A. (2012). Political connection and cost of debt: Some Malaysian evidence. Journal of Banking and Finance, 36(5), 1520–1527. http://doi.org/10.1016/j.jbankfin.2011.12.011 Blumberg, B. F., & Letterie, W. A. (2007). Business starters and credit rationing. Small Business Economics, 30(2), 187–200. http://doi.org/10.1007/s11187-006-9030-1 Boocock, J. G., & Mohd Sharif, M. N. (2005). Measuring the effectiveness of credit guarantee schemes. International Small Business Journal, 23(4), 427–454. Boocock, J. G., & Wahab, I. A. (2001). The financing of small firms : Different continents, the same problems? New England Journal of Entrepreneurship, 4(2), 13–31. Brennan, M. (1992). Techniques for Improving Mail Survey Response Rate. Marketing Buletin, 24–27. Brewer, E. (2007). On lending to small firms. Journal of Small Business Management, 45(1), 42–46. Brown, M., Ongena, S., Popov, A., & Yesin, P. (2011). Who needs credit and who gets credit in Eastern Europe? Economic Policy, 26(65), 93–130. Bruns, V., & Fletcher, M. (2008). Banks’ risk assessment of Swedish SMEs. Venture Capital, 10(January), 171–194. Calder, B. J., Phillips, L. W., & Tybout, A. M. (1982). The Concept of External Validity. Journal of Consumer Research, 9(3), 240–244. Calder, B. J., Phillips, L. W., & Tybout, A. M. (1983). Beyond External Validity. Journal of Consumer Research, 10(1), 112–114. Canton, E., Grilo, I., Monteagudo, J., & Zwan, P. (2013). Perceived credit constraints in the European Union. Small Business Economics, 41(3), 701–715. http://doi.org/10.1007/s11187-012-9451-y Carter, S., Mwaura, S., Ram, M., Trehan, K., & Jones, T. (2015). Barriers to ethnic minority and women’s enterprise: Existing evidence, policy tensions and unsettled questions. International Small Business Journal, 33(1), 49–69. http://doi.org/10.1177/0266242614556823 Carter, S., & Rosa, P. (1998). The financing of male and female-owned business. Entrepreneurship & Regional Development, 10(3), 225–241. Cavalluzzo, K. S., & Cavalluzzo, L. C. (2002). Competetion, Small Business Financing and Discriminations. Journal of Business, 75(4), 641–679. Cavalluzzo, K. S., Cavalluzzo, L. C., & Wolken, J. D. (2002). Competition, small business financing, and discrimination: evidence from a new survey. The Journal of Business, 75(4), 641–679. http://doi.org/10.1086/341638 Cavalluzzo, K. S., & Wolken, J. (2005). Small business loan turndowns, personal wealth and discrimination. The Journal of Business, 78(6), 2153–2178. http://doi.org/10.1086/497045 Chakravarty, S., & Xiang, M. (2013). The international evidence on discouraged small businesses. Journal of Empirical Finance, 20(1), 63–82. http://doi.org/10.1016/j.jempfin.2012.09.001 Chan, S. H., & Lin, J. J. (2013). Financing of micro and small enterprises in China: An exploratory study. Strategic Change, 22, 431–446. Chapman, D. W., & Carter, J. F. (1979). Translation Procedures for the Cross Cultural Use of Measurement Instruments. Educational Evaluation and Policy Analysis, 1(3), 71–76. Chong, C. W., Chong, S. C., & Gan, G. C. (2011). Inter-organizational knowledge transfer needs among small and medium enterprises. Library Review, 60(1), 37–52. http://doi.org/10.1108/00242531111100568 Chua, W. F. (1986). Radical Development in accounting Thought. The Accounting Review, 61(4), 601–632. Claessens, S., Feijen, E., & Laeven, L. (2008). Political connections and preferential access to finance : the role of campaign contributions. Journal of Financial Economics, 88(3), 554–580. Cole, R. A. (1998). The importance of relationships to the availability of credit. Journal of Banking & Finance, 22, 959–977. Cole, R. A., Goldberg, L. G., & White, L. J. (2004). Cookie cutter vs . character : The micro structure of small business Llending by large and small banks. Journal of Financial and Quantitative Analysis, 39(2), 227–252. Cole, R. A., & Sokolyk, T. (2016). Who needs credit and who gets credit? Evidence from the Surveys of small business finances. Journal of Financial Stability, 24, 40–60. Coleman, S. (2000). Access to Capital and Terms of Credit: A Comparison of Menand Women-Owned Small Businesses. Journal of Small Business Management, 38(3), 37–52. Retrieved from http://ezp.waldenulibrary.org/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=3308607&scope=site Cooper, D. R., & Schindler, P. S. (2003). Business Research Methods (8th ed.). Boston, USA: McGGraw-Hill Irwin. Cosh, A., Cumming, D., & Hughes, A. (2009). Outside enterpreneurial capital. The Economic Journal, 119, 1494–1533. http://doi.org/10.1111/j.1468-0297.2009.02270.x. Cowling, M., & Mitchell, P. (2003). Is the small firms loan guarantee scheme hazardous for banks or helpful to small business. Small Business Economics, 21, 63–71. Craig, B. R., Jackson, W. E., & Thomson, J. B. (2007). Small firm finance, credit rationing, and the impact of SBA-guaranteed Lelnding on local economic growth. Journal of Small Business Management, 45(1), 116–132. Cronin, J. J., & Taylor, S. A. (1992). Measuring service quality: A reexamination and extension. Journal of Marketing, 58, 55–68. Cziraky, D., Tisma, S., & Pisarovic, A. (2005). Determinants of the low SME loan approval rate in Croatia. Small Business Economics, 25, 347–372. Department of Statistic Malaysia. (2012). Economic cencus 2011: profile of small medium entreprise. http://doi.org/ISBN 978-983-9044-67-6 Department of Statistic Malaysia. (2017). The Malaysian Economy: special highlights Economic Census 2016: Profile of SMEs. Dillman, D. A. (2000). Mail and internet surveys: the tailored design methods (2nd ed.). New York: John Wiley & Son. Economic Planning Unit. (2010). Tenth Malaysia Plan 2011-2015. Rancangan Malaysia Kesepuluh (Tenth Malaysia Plan) : 2011-2015. Economic Planning Unit. (2015). Eleventh Malaysia Plan 2016-2020. (Economic Planning Unit, Ed.)Rancangan Malaysia Kesebelas (Eleventh Malaysia Plan) : 2016-2020. Kuala Lumpur: Percetakan Nasional. Retrieved from http://rmk11.epu.gov.my/book/eng/Elevent-Malaysia-Plan/RMKe-11Book.pdf Eddleston, K. A., Ladge, J. J., Mitteness, C., & Balachandra, L. (2014). Do you see what I see? Signaling effects of gender and firm characteristics on financing entrepreneurial ventures. Entrepreneurship: Theory and Practice, 40(3), 489–514. http://doi.org/10.1111/etap.12117 Edmond, A. P., & Collins, F. (1976). Bankers -accountants -financial statements : Their relationship to small-business loan decision. Journal of Small Business and Enterprise Development, 14, 16–22. Elsas, R., & Krahnen, J. P. (1998). Is relationship lending special ? Evidence from credit-file data in Germany. Journal of Banking & Finance, 22, 1283–1316. Erdil, D., Keskin, H., & Erdil, O. (2003). The Relationship Between Market Orientation, Firm Innovativeness and Innovation Performance. The Journal of Global Business Technology, 1, 3–13. Faccio, M., Masulis, R. W., & Connell, J. M. (2006). Political connections and corporate bailouts. The Journal of Finance, LXI(6), 2597–2635. Fatoki, O., & Asah, F. (2011). The impact of firm and entrepreneurial characteristics on access to debt finance by SMEs in King Williams’ Town, South Africa. International Journal of Business and Management, 6(8), 170–179. http://doi.org/10.5539/ijbm.v6n8p170 Fatt, C. K., Khin, E. W., & Yap, P. (2010). Doctrine of corporate governance and competition laws: The Malaysian perspectives. African Journal of Business Management, 4(6), 1175–1184. Ferguson, L. (2004). External validity, generalizability, and knowledge utilization. Journal of Nursing Scholarship, 36(1), 16–22. Firth, M., Lin, C., Liu, P., & Wong, S. M. L. (2009). Inside the black box : Bank credit allocation in China ’ s private sector. Journal of Banking and Finance, 33(6), 1144–1155. http://doi.org/10.1016/j.jbankfin.2008.12.008 Frangos, C., Fragkos, K., Sotiropoulos, I., Manolopoulos, G., & Valvi, A. (2012). Factors affecting customers’ decision for taking out bank loans: A case of Greek customers. Journal of Marketing Research and Case Studies, 2012, 1–16. http://doi.org/10.5171/2012.927167 Frank, M. Z., & Goyal, V. K. (2003). Testing the pecking order theory of capital structure. Journal of Financial Economics, 67(2), 217–248. http://doi.org/10.1016/S0304-405X(02)00252-0 Fraser, S. (2009). Is there ethnic discrimination in the UK market for small business credit? International Small Business Journal, 27(5), 583–607. http://doi.org/10.1177/0266242609338756 Freel, M. (2007). Are small innovators’ credit rationed? Small Business Economics, 28, 23–35. Freel, M., Carter, S., Tagg, S., & Mason, C. (2012). The latent demand for bank debt: Characterizing “discouraged borrowers.” Small Business Economics, 38(4), 399–418. http://doi.org/10.1007/s11187-010-9283-6 Frid, C. J. (2009). Acquiring financial resources to form new ventures: pecking order theory and the emerging firm. Frontiers of Entrepreneurship Research, 29(1), 1–15. http://doi.org/10.1080/08276331.2015.1082895 Gama, A. P. M., Duarte, F. D., & Esperança, J. P. (2017). Why discouraged borrowers exist? An empirical (re)examination from less developed countries. Emerging Markets Review, 33(September), 19–41. http://doi.org/10.1016/j.ememar.2017.08.003 Garwe, D. K., & Fatoki, O. (2012). The impact of gender on SME characteristics and access to debt finance in South Africa. Development Southern Africa, 29(3), 448–461. http://doi.org/10.1080/0376835X.2012.706040 Gerlach-Kristen, P., O’Connell, B., & O’Toole, C. (2015). Do credit constraints affect SME investment and employment? Economic and Social Review, 46(1), 51–86. Ghobadian, A., Speller, S., & Jones, M. (1994). Service quality: Concepts and models. International Journal of Quality & Reliability Management, 11(9), 43–66. http://doi.org/10.1108/02656719410074297 Gomez-Vazquez, A. M., Hernandez-Canovas, G., & Ramon-Llorens, M. C. (2018). Borrower discouragement in a bank-based economy : empirical evidence for Universia Business Review, (May 2017), 144–162. http://doi.org/10.3232/UBR.2018.V15.N1.04 Grilli, L. (2005). Internet start-ups access to the bank loan market: evidence from Italy. Applied Economics, 37(3), 293–305. http://doi.org/10.1080/0003684042000295331 Guba, E. G., & Lincoln, Y. S. (1994). Competing paradigms in Qualitative Research. In N. K. Denzin & Y. S. Lincoln (Eds.), HAndbook of Qualitative Research (pp. 105–117). London: Sage. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis: A global perspective (Seventh Ed). New Jersey, USA: Pearson Education Inc. Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis (Sixth Ed.). New Jersey, USA: Pearson Education Inc. Han, L., Fraser, S., & Storey, D. J. (2009a). Are good or bad borrowers discouraged from applying for loans? Evidence from US small business credit markets. Journal of Banking & Finance, 33(2), 415–424. http://doi.org/10.1016/j.jbankfin.2008.08.014 Han, L., Fraser, S., & Storey, D. J. (2009b). The role of collateral in entrepreneurial finance. Journal of Business Finance & Accounting, 36(May), 424–455. http://doi.org/10.1111/j.1468-5957.2009.02132.x Han, L., & Greene, F. (2007). The determinants of online loan applications from small businesses. Journal of Small Business and Enterprise Development, 14(3), 478–486. Harhoff, D., & Korting, T. (1998). Lending relationships in Germany: empirical evidence from survey data. Journal of Banking & Finance, 22, 1317–1353. Haron, S., Said, S., Jayaraman, K., & Ismail, I. (2013). Factors Influencing Small Medium Enterprises (SMES) in Obtaining Loan. International Journal of Business and Social Science, 4(15), 182–195. Haron, S., & Shanmugam, B. (1994). Lending to small business in Malaysia. Journal of Small Business Management, 32(4), 88–95. Hashi, I., & Toci, V. (2010). Financing constraints, credit rationing and financing obstacles: Evidence from firm-level data in South Eastern Europe. Economic And Business Review, 12(1), 29–60. Hashim, J. (2007). Information Communication Technology ( ICT ) Adoption Among SME Owners in Malaysia. International Journal of Business and Information, 2(2), 221–240. http://doi.org/10.5897/AJBM10.1398 Hashim, M. K., Ahmad, S., & Zakaria, M. (2010). Internalisation incetives and problems: Insight from Malaysian SMEs. World Review of Entrepreneurship, Management and Sustainable Development, 1(2), 125–134. Hashim, M. K., & Zakaria, M. (2010). Business strategy and performance of small and medium manufacturing firms in Malaysia. World Review of Entrepreneurship, Management and Sustainable Development, 1(2), 100–112. Hassan, N., Susan, T. S. C., Jian, A. Y., & Mohd Rom, N. A. (2010). Financial Constraints and Opportunities of Micro Entreprise Entreprenuers : A Theoretical Framework. In International Conference on Information and Finance (pp. 165–168). Hernandez-Canovas, G., & Martinez-Solano, P. (2006). Banking Relationships : Effects on Debt Terms for Small Spanish Firms *. Journal of Small Business Management, 44(3), 315–333. Hill, F. M., Leitch, C. M., & Harrison, R. T. (2006). ‘Desperately seeking finance?’ The demand for finance by women-owned and -led businesses. In Venture Capital (Vol. 8, pp. 159–182). http://doi.org/10.1080/13691060600555347 Holmes, S., & Kent, P. (1991). An empirical analysis of the finance structure of small and large Australian manufacturing enterprises. Journal of Small Business Finance, 1(2), 141–154. Howells, J. (2003). Barriers to Innovation and Technology Transfer in Services. Technology Monitor, 20(3), 29–34. Hulten, A. V. (2012). Womens access to SME finance in Australia. International Journal of Gender and Entrepreneurship, 4(3), 266–288. http://doi.org/http://dx.doi.org/10.1108/BIJ-10-2012-0068 Hulten, A. V., & Ahmed, A. D. (2013). Migrant entrepreneurs’ access to business finance in Australia. Journal of Developmental Entrepreneurship, 18(01), 1350003. http://doi.org/10.1142/S1084946713500039 Hyytinen, A., & Pajarinen, M. (2008). Opacity of young businesses: Evidence from rating disagreements. Journal of Banking and Finance, 32(7), 1234–1241. http://doi.org/10.1016/j.jbankfin.2007.10.006 Ismail, A. G., & Razak, A. A. (2003). Equity or debt as a security choice : Evidence from small-medium firms in Malaysia. International Journal of Management, 20(3), 408–417. Jiangli, W., Unal, H., & Yom, C. (2008). Relationship lending, accounting disclosure, and credit availability during the Asian financial crisis. Journal of Money, Credit and Banking, 40(1), 25–35. http://doi.org/10.1111/j.1538-4616.2008.00103.x Johanson, G. A., & Brooks, G. P. (2010). Initial scale development: Sample size for pilot studies. Educational and Psychological Measurement, 70(3), 394–400. http://doi.org/10.1177/0013164409355692 Johnson, S., & Mitton, T. (2003). Cronyism and capital controls: Evidence from Malaysia. Journal of Financial Economics, 67, 351–382. Khwaja, A. I., & Mian, A. (2005). Do lenders favor politically connected firms? Rent provision in an emerging financial market. The Quarterly Journal of Econimics, 120(4), 1371–1411. Kon, Y., & Storey, D. J. (2003). A theory of discouraged borrowers. Small Business Economics, 21(1), 37. La Porta, R., Lopez, F., & Zamarripa, G. (2003). Related Lending. Quarterly Journal of Economics, 118, 231–268. Le, N. T. B., & Nguyen, T. V. (2009). The impact of networking on bank financing: The case of small and medium sized enterprises in Vietnam. Entrepreneurship Theory & Practice, (July), 867–887. http://doi.org/10.1111/j.1540-6520.2010.00391.x Lee, Y. W., Strong, D. M., Kahn, B. K., & Wang, R. Y. (2002). AIMQ: A methodology for information quality assessment. Information and Management, 40(2), 133–146. http://doi.org/10.1016/S0378-7206(02)00043-5 Leitch, C., & Hill, F. M. (2006). Guest editorial: Women and the financing of entrepreneurial ventures: More pieces for the Jigsaw. Venture Capital: An International Journal of Entrepreneurial Finance, 8(1), 1–14. http://doi.org/10.1080/13691060600555321 Leuz, C., & Gee, F. O. (2006). Political relationships, global financing and corporate transparency: Evidence from Indonesia. Journal of Financial Economic, 81, 411–439. Levenson, A. R., & Willard, K. (2000). Do firms get financing they want? Measuring credit rationing experience by small business in the US. Small Business Economics, 14(2), 83–94. López-Gracia, J., & Sogorb-Mira, F. (2008). Testing trade-off and pecking order theories financing SMEs. Small Business Economics, 31(2), 117–136. http://doi.org/10.1007/s11187-007-9088-4 Love, I. (2003). Financial development and financing Constraints: International evidence from the structural investment model. Review of Financial Studies, 16(3), 765–791. http://doi.org/10.1093/rfs/hhg013 Lucas, J. W. (2003). Theory-Testing , Generalization , and the Problem of External Validity. Sociological Theory, 21(3), 236–253. Mac an Bhaird, C. (2013). Demand for debt and equity before and after the financial crisis. Research in International Business and Finance, 28(1), 105–117. Mac an Bhaird, C., Vidal, J. S., & Lucey, B. (2016). Discouraged borrowers: Evidence for Eurozone SMEs. Journal of International Financial Markets, Institutions and Money, 44, 46–55. Machauer, A., & Weber, M. (1998). Bank behavior based on internal credit ratings of borrowers. Journal of Banking & Finance, 22, 1355–1383. Manove, M., Padilla, J., & Pagano, M. (2001). Collateral Versus Project Screening: A Model of Lazy Bank. Journal of Economics, 32, 726–744. Marshall, C., & Rossman, G. B. (2006). Designing Qualitative Research (4th ed.). Thousand Oaks, CA: Sage. Menkhoff, L., Neuberger, D., & Suwanaporn, C. (2006). Collateral-based lending in emerging markets: Evidence from Thailand. Journal of Banking & Finance, 30(1), 1–21. http://doi.org/10.1016/j.jbankfin.2004.12.004 Merriam, S. B. (1998). Qualitative Research and Case Study Applications in Education. San Francisco: Jossey-Bass. MGCC. (2007). Bank Negara Malaysia’s SME Development Initiatives. Malaysian-German Chamber of Commerce and Industry. Michaelas, N., Chittenden, F., & Poutziouris, P. (1999). Financial policy and capital structure choice in U . K . SMEs : Empirical eviden ... Small Business Economics, 12(2), 113–130. Mina, A., Lahr, H., & Hughes, A. (2013). The demand and supply of external finance for innovative firms. Industrial and Corporate Change, 22(4), 869–901. http://doi.org/10.1093/icc/dtt020 Moha Asri, A., & Siti Khadijah, A. M. (2011). Small and medium enterprises and their financinag patterns: Evidence from Malaysia. Journal of Economics Cooperation and Development, 32(2), 1–18. Mohd. Zamri, M. I. (2016, October 27). Cabaran PKS Dalam Memperoleh Pembiayaan. Utusan Malaysia. Kuala Lumpur. Retrieved from www.utusanmalaysia.com.my/bisnes/cabaran-pks-dalam-memperolehpembiayaan-1.325005 Mokhtar, S. H., Nartea, G., & Gan, C. (2012). Determinants of microcredit loans repayment problem among microfinance borrowers in Malaysia. International Journal of Business and Social Research, 2(7), 33–45. Muhammad, M. Z., Char, A. K., Yasoa, M. R., & Hassan, Z. (2010). Small and medium enterprises ( SMEs ) competing in the global business environment : A case of Malaysia. International Business Research, 3(1), 66–75. Retrieved from http://journal.ccsenet.org/index.php/ibr/article/view/3893 Myers, M. D., & Avison, D. (2002). Qualitative Research in Information Systems. London: Sage. Myers, S. C. (1984). The Capital Structure Puzzle. Journal of Finance, 39, 575–592. Myers, S. C. (2011). Capital Structure. The Journal of Economic Perspectives, 15(2), 81–102. http://doi.org/10.2307/2696593 Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investors’ decisions when firms have information that investors do not have. Journal of Financial Economics, 13, 187–221. Nguyen, T. D. K., & Ramachandran, N. (2006). Capital structure in small and medium‑sized enterprises: The case of Vietnam. Asean Economic Bulletin, 23(2), 192–211. http://doi.org/10.1355/AE23-2D Niinimäki, J. (2009). Does collateral fuel moral hazard in banking ? Journal of Banking and Finance, 33(3), 514–521. http://doi.org/10.1016/j.jbankfin.2008.09.008 Niinimaki, J. P. (2009). Does Collateral Fuel More Moral Hazard in Banking? Journal of Banking and Finance, 33, 514–521. Noroozi, A., Mobarekeh, A. N., & Zadeh, H. F. (2010). The impact of e-commerce on export development in developing countries: A case of small and mediumsized enterprise in Iraq and Malaysia. In International Conference on Information Management and Engineering (pp. 435–439). Kuala Lumpur. Ono, A., & Uesugi, I. (2009). Role of collateral and personal guarantees in relationship lending : Evidence from Japan ’ s SME loan market. Journal of Money, Credit and Banking, 41(5), 935–960. Orlikowski, W., & Baroudi, J. J. (1990). Studying information technology in organizations: Research approaches and assumptions. Center for Digital Economy Research Stem School of Business, 1–31. http://doi.org/10.1287/isre.2.1.1 Orser, B., Riding, A., & Manley, K. (2005). Equity and equity: application and approval for financing women-owned Canadian SMEs. In Proceedings, Administrative Sciences Association of Canada, Ryerson Polytechnic University. Orser, B., Riding, A., & Manley, K. (2006). Women enterprise and financial capital. Entrepreneurship & Regional Development, 643–666. Padachi, K., Howorth, C., & Narasimhan, M. S. (2012). Working Capital Financing Preferences: The Case of Muritian Manufacturing Small and Medium-Sized Enterprises (SMEs). Asian Academy of Management Journal of Accounting and Finance, 8(1), 125–157. Palepu, K. G. (1986). Predicting takeover targets. A methodological and empirical analysis. Journal of Accounting and Economics, 8(1), 3–35. http://doi.org/10.1016/0165-4101(86)90008-X Pallant, J. (2010). SPSS Survival Manual (Fourth Ed.). Singapore: McGraw-Hill Education. Parasuraman, A., Zeithami, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications to future research. Journal of Marketing, 49(4), 41–50. Perry, M., & Coetzer, A. (2009). Small enterprise relations with banks and accountants. Journal of Small Business and Enterprise Development, 16, 306–321. http://doi.org/10.1108/14626000910956074 Petersen, M. A., & Rajan, R. G. (1994). The benefits of lending relationships: Evidence from small business data. The Journal of Finance, 49(1), 3. http://doi.org/10.2307/2329133 Pitt, L. F., Watson, R. T., & Kavan, C. B. (1995). Service quality : A measure of Information system effectiveness. MIS Quarterly, 19(2), 173–187. Rachagan, S., & Satkunasingam, E. (2009). Improving corporate governance of SMEs in emerging economies: A Malaysian experience. Journal of Enterprise Information Management, 22(4), 468–484. Raturi, M., & Swami, A. V. (1999). Explaining ethnic differentials in credit market outcomes in Zimbabwe. Economic Development and Cultural Change, 47(3), 585–604. Readers’ Digest. (2001). Great Dictionary of the English Language. London: The Readers’ Digest Association Limited. Reeves, C. A., & Bednar, D. A. (1994). Defining quality : Alternatives and implications. The Academy of Management Review, 19(3), 419–445. Riding, A., Orser, B., & Chamberlin, T. (2012). Investing in R & D : small- and medium-sized enterprise financing preferences. Venture Capital, 14(May), 37–41. http://doi.org/10.1080/13691066.2012.654601 Roper, S., & Scott, J. M. (2009). Perceived financial barriers and the start-up decision: An econometric analysis of gender differences using GEM data. International Small Business Journal, 27(2), 149–171. http://doi.org/10.1177/0266242608100488 Roslan, A. H., & Abd Karim, M. Z. (2009). Determinants of Microcredit Repayment in Malaysia : The Case of Agrobank. Humanity & Social Sciences Journal. Saad, R. M., Ghani, A. A., & Ahmad, S. (2014). Kesan sumber pembiayaan ekuiti dan hutang ke atas prestasi perniagaan PKS di Malaysia. Sains Humanika, 2(1), 151–157. Saleh, A. S., & Ndubisi, N. O. (2006). An evaluation of SME development in Malaysia. International Review of Business Research Papers, 2(1), 1–14. Sanchez, V. J., & Martin, U. J. F. (2005). Financing Preferences of Spanish Firms : Evidence on the Pecking Order Theory. Review of Quantitative Finance and Accounting, 25, 341–355. Scholtens, B. (1999). Analytical issues in external financing alternatives for SBEs. Small Business Economics, 12(2), 137–148. Scott, M., & Bruce, R. (1987). Five stages of growth in small business. Long Range Planning, 20(3), 45–52. http://doi.org/10.1016/0024-6301(87)90071-9 Sekaran, U. (2003). Research Methods for Business: A Skill Building Approach. New York: John Wiley & Son. Sekaran, U., & Bougie, R. (2010). Research methods for business: A skill building approach (Fifth Ed.). West Sussex, UK: John Wiley & Son. Seth, N., Deshmukh, S. . G., & Vrat, P. (2005). Service quality models: a review. International Journal of Quality & Reliability Management, 22(9), 913–949. http://doi.org/10.1108/02656710510625211 Shaharudin, Z., Ahmad Basri, M. N., & Mohd Isa, M. Y. (2016). Factors Influencing Payments Behavior among Customers of Islamic Retail Financing. Journal of Islamic Banking and Finance, 4(2), 34–37. http://doi.org/10.15640/jibf.v4n2a5 Shahawai, S. S., & Idrus, R. (2010). Pre-considered factors affecting ERP system adoption in Malaysian SMEs. In UKM 12th International Conference on Computer Modelling and Simulation (pp. 323–328). Sheng, Y. T., Rani, A. N. S., & Shaikh, J. M. (2010). Impact of SMEs character in the loan approval stage. In International Conference on Information and Finance (ICIF) (pp. 229–233). SME Annual Report Council. (2007). The Small and Medium Enterprise (SME)Annual Report. SME Annual Report Council. (2009). The small and Medium Enterprise (SME) Annual Report. SME Annual Report Council. (2016). SME Annual Report 2015. Kuala Lumpur. SME Corporation Malaysia. (2011). Economic Census 2011: Profile of SMEs. Department of Statistics Malaysia. Snape, D., & Spencer, L. (2003). The Foundations of Qualitative Research. Qualitative Research Practice: A Guide for Social Science Students and Researchers, 2–10. http://doi.org/10.4135/9781452230108 Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with imperfect information. The American Economic Review, 71(3), 393–410. Storey, D. J. (2004). Racial and gender discrimination in the micro firms credit market: Evidence from Trinidad and Tobago. Small Business Economics, 23(5), 401–422. http://doi.org/10.1007/s11187-004-7259-0 Straub, D., Boudreau, M. C., & Gefen, D. (2004). Validation guidelines for IS positivist research. Communications of the Association for Information Systems, 13. Tabachnick, B. G., & Fidell, L. S. (2007). Using multivariate statistics (Fifth Ed.). Boston, USA: Pearson Education Inc. Tamimi, N., & Sebastianelli, R. (1996). How firms define and measure quality. Production & Inventory Management Journal, 37(3), 34–39. Tang, Y., Deng, C., & Moro, A. (2016). Firm-bank trusting relationship and discouraged borrowers. Review of Managerial Science, 1–23. The Economist Intelligence Unit. (2009). Surviving the drought Access to finance among small and medium- sized enterprises. ACCA, CGA (Canada, CPA (Australia). The Edge. (2009a). SMEs — How to enhance your chances in getting the loan you need, (March), 6–7. The Edge. (2009b). Tight credit flow easing , say industry players, 1–2. The Edge. (2014). Maybank allocates RM1 bln in 2014 , to loan fund for SMES, (March 19), 2014. The World Bank. (2009). Doing Business. The World Bank. (2013a). Doing Business 2013. http://doi.org/10.1596/978-0-8213-9615-5 The World Bank. (2013b). Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises. Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises. http://doi.org/10.1596/978-0-8213-9984-2. License: Creative Commons Attribution CC BY 3.0 Voordeckers, W., & Steijvers, T. (2006). Business collateral and personal commitments in SME lending. Journal of Banking & Finance, 30(11), 3067–3086. http://doi.org/10.1016/j.jbankfin.2006.05.003 Vos, E., Yeh, A. J., Carter, S., & Tagg, S. (2007). The happy story of small business financing. Journal of Banking & Finance, 31(9), 2648–2672. http://doi.org/10.1016/j.jbankfin.2006.09.011 Watson, J. (2006). External Funding and Firms Growth: Comparing Female and Male Controled SMEs. Venture Capital, 8(1), 33–49. Watson, J., & Everett, J. (1999). Small business failure rates: Choices of definition and industry effects. International Small Business Journal, 17, 33–49. Wattanapruttipaisan, T. (2003). Four proposals for improved financing of SME development in Asean. Asian Development Review, 20(2), 66–104. Westhead, P., & Storey, D. J. (1997). Financial constraints on the growth of hightechnology small firms in the United Kingdom. Applied Financial Economics, 7, 197–201. Westhead, P., Ucbasaran, D., Wright, M., & Binks, M. (2005). Novice, serial and portfolio entrepreneur behaviour and contributions. Small Business Economics, 25, 109–132. Wicks, A. M., & Roethlein, C. J. (2009). A satisfaction-based definition of quality. Journal of Business & Economic Studies, 15(1), 82–98. Wong, K. Y., & Aspinwall, E. (2005). An empirical study of the important factors for knowledge-management adoption in the SME sector. Journal of Knowledge Management, 9(3), 64–82. http://doi.org/10.1108/13673270510602773 Wood, R., & Bandura, a. (1989). Impact of conceptions of ability on selfregulatory mechanisms and complex decision making. Journal of Personality and Social Psychology, 56(3), 407–415. http://doi.org/10.1037/0022-3514.56.3.407 Wooi, G. C., & Zailani, S. (2010). Green supply chain initiatives: Investigation on the barriers in the context of SMEs in Malaysia. International Business Managment, 4(1), 20–27. Wu, J., Song, J., & Zeng, C. (2008). An empirical evidence of small business financing in China. Management Research News, 31(12), 959–975. http://doi.org/10.1108/01409170810920666 Xiang, D., Worthington, A. C., & Higgs, H. (2014). Discouraged finance seekers: An analysis of Australian small and medium-sized enterprises. International Small Business Journal, 33(7), 1–9. http://doi.org/10.1177/0266242613516138 Zadry, H. R., & Yusof, S. M. (2006). Total quality management and theory of constraints implementation in Malaysian automotive suppliers: A survey result. Business Excellence, 17(8), 999–1020. Zainol, F. A., & Ayadurai, S. (2010). Cultural background and firm performances of Indigenous (“Bumiputera”) Malay family firms in Malaysia: The role of entrepreneurial orientation as a mediating variable. The Journal of Asia Entrepreneurship and Sustainability, VI(1), 3–19. http://doi.org/10.1093/infdis/jit785 Zairani, Z., & Zaimah, Z. A. (2013). Difficulties in Securing Funding from Banks: Success Factors for Small and Medium Enterprises (SMEs). Journal of Advanced Management Science, 1(4), 354–357. http://doi.org/10.12720/joams.1.4.354-357 Zikmund, W. G. (2003). Business Researh Method (7th ed.). USA: Thomson Learning. Zimmerman, B. J. (1989). A social cognitive view of self-regulated academic learning. Journal of Educational Psychology, 81(3), 329–339. http://doi.org/10.1037/0022-0663.81.3.329 Zineldin, M. (1996). Bank-corporate client “partnership” relationship: Benefits and life cycle. International Journal of Bank Marketing, 14(3), 12–22. Zinger, J. T. (2002). The small enterprise-bank relationship: Further empirical evidence. Journal of Enterprising Culture, 10(3), 189–207.

Similar Items