Smes in mauritius may show a different capital structure with limited access to external finance due to the under developed nature of the financial market what influences smes' capital structure decisions still remains unexplored in the mauritian context. This survey examines the ways small and medium enterprises finance their operations in mauritius since there has been really few surveies carried out the purpose of this paper is to happen out the ratio of debt to equity of smes in the mauritanian economic system. Since smes cannot easily substitute short-term and long-term debt nancing 1 , the mechanism through which export activities a ect sme nancing policy may be di erent from what is evidenced in the mnc literature. Research investigates the determinants of capital structure among smes in malaysia, among smes within the list of enterprise 50 award winners from 1998 to 2010 electronic surveys were conducted with a. - the purpose of this research is to examine the effect of debt policy (capital structure) on the financial performance of small and medium‐sized enterprises (smes) in ghana and south africa previous studies, especially on large firms, have shown that capital structure affects firm performance.
Determinants of capital structure in irish smes abstract this paper presents an empirical examination of firm characteristic determinants of the capital structure of a sample of 299 irish small and medium sized firms (smes. Paulo maçãs nunes and zélia serrasqueiro, short-term debt and long-term debt determinants in small and medium-sized hospitality firms, tourism economics, 23, 3, (543), (2017) crossref nikolaos daskalakis, dimitrios balios and violetta dalla , the behaviour of smes' capital structure determinants in different macroeconomic states , journal. Capital structure issue, this book will provide empirical evidence on the main determinants of capital structure and on whether capital structure. This paper explains both capital-structure and debt-maturity choices for smes in terms of institutional differences at the local level, making use of regions as the unit of analysis specifically.
Smes, the number of empirical studies on smes capital structure decisions has increased today there is a number of studies focusing on smes debt policy decisions in western european countries (for example, michaelas, chittenden & poutziouris 1998 hall. This paper explains both capital-structure and debt-maturity choices for smes in terms of institutional differences at the local level, making use of regions as the unit of analysis specifically, the article considers local financial development and the effectiveness of the local enforcement system, controlling for firm-specific characteristics. In light of the significant contribution of smes to the global economy, and to mauritius in particular, the researcher would like to explore and describe the financial knowledge which manufacturing smes in mauritius use to measure their financial performance.
Structure is encapsulated in the concept of working capital management (wcm), which refers to the financing, investment and control of the net current assets within the policy guidelines. Capital structure decision is the mix of debt and equity that a company uses to finance its business capital structure decisions represent another important financial decision of a. Capital structure composition of smes, measured the performance of smes, examine the relationship between the capital structure and performance of smes based on profitability and liquidity and found out the factors affecting smes capital structure.
Capital structure in smes and trusting relationships the most commonly used term in the literature to describe the capital structure of firms is puzzle. The key aim of this paper is to test the relevance of the different financing theories for explaining capital structure choice in the small and medium enterprises (smes) sector in mauritius. The capital structures of quoted firms, large unquoted firms, and small and medium enterprises (smes) in kenya, this study is relevant in the kenyan context given the important role the private sector is expected to play as the. To achieve this end, a questionnaire survey was administered to a sample of 100 smes in mauritius examining issues including the capital structure at financing business activities, the five different categories of smes was analyzed was food and beverages, leather and garments, metal products, paper products and printing and wood and furniture. This research investigates the determinants of the capital structure of small and medium enterprises (smes) using a unique database that includes over 19,000 brazilian firms and spans 13 years of data.
The structure is typically expressed as a debt-to-equity finance capital structure refers to the amount of debt and/or equity employed by a firm to fund its operations and finance its assets the structure is typically expressed as a debt-to-equity or debt-to-capital ratio. Structure, we find that the declines in leverage, debt maturity, and use of long‐term debt were significantly larger for smes in the countries with less efficient bankruptcy procedures, with less. This paper presents an empirical description of the capital structures of a sample of 299 irish small and medium sized enterprises (smes hereafter) the sources of finance used by respondents are delineated by internal and external sources and viewed through a life cycle model recognising the. Debt generally implies a desire to grow an sme, sme managers will forgo debt-funded growth opportunities in exchange for the retention of positive atmosphere of the smaller firm, in addition to independence and control.
The firm characteristics suggest that the capital structure decision is consistent with the pecking-order theory: dutch smes use profits to reduce their debt level, and growing firms increase their debt position since they need more funds. Suitable capital structure helps smes to stay alive in the competitive market and has a positive effect on the national economy wealth maximization is the first objective of the firms, and.
Working capital structure and financing practices of small to medium-sized firms as an attempt to bridge this gap and to add to the growing literature on financing decisions of smes. Capital structures are driven by firms' desire to finance new investment by firstly internal sources (reinvested earnings), then with low risk debt and finally as a last resort by new issue of equity.