Issue logo

Jurnal Ekonomi Malaysia

49 (2) 2015 87 – 95

Kesan Kekangan Kewangan ke atas Produktiviti Firma di Malaysia
The Impact of Financial Constraints on Firms’ Productivity in Malaysia

Pusat Pengajian Ekonomi
Fakulti Ekonomi dan Pengurusan
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor D.E.

mohadis@ukm.edu.my

Pusat Pengajian Ekonomi
Fakulti Ekonomi dan Pengurusan
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor D.E.

sitisarah.ann@gmail.com

Abstract

Financial factors have been the main focus in influencing the firm’s real activities. Accessibility to financial resources is a significant determinant to increase firm productivity and subsequently generate firm’s growth. This paper will study the impact of financial constraints on firm’s productivity in Malaysia by using a firm level panel data analysis. System Generalized Method of Moments (GMM) was used in this study. The empirical results show that financial factor has a significant impact on productivity of firm. Firm’s cash flow affects firm’s productivity. This indicates that the shortage of internal funds causing firm unable to access the external finance for financing investment activities. The study also finds that small firms suffer financial constraints in enhancing productivity, while large firms are not financially constrained. Therefore, the findings of this study are important in explaining the relationship between financial constraints and productivity in order to assist the policy maker to formulate the policy that can spur economic growth in Malaysia.

Keywords

economic growth; financial constraints; GMM.; panel data; productivity
http://dx.doi.org/10.17576/JEM-2015-4902-08
No. of views: 662
View Full Text

Similar Articles

  1. Does Firm Size Matter for the Financial Constraints?
  2. Was Bail-Out A Success? Evidence from the Investment-Cash Flow Relationship
  3. Kesan Kekangan Kewangan dan Gelagat Eksport ke atas Produktiviti Firma di Malaysia

Bibliography

Export Bibliography

Ismail, M. A., & Annuar, (2015). Kesan Kekangan Kewangan ke atas Produktiviti Firma di Malaysia. Jurnal Ekonomi Malaysia, 49(2), 87–95. http://dx.doi.org/10.17576/JEM-2015-4902-08

@article{ismail2015kesan,
  title={Kesan Kekangan Kewangan ke atas Produktiviti Firma di Malaysia},
  author={Ismail, Mohd Adib and Annuar, Siti Sarah},
  journal={Jurnal Ekonomi Malaysia},
  volume={49},
  number={2},
  pages={87—95},
 

year={2015},
}

Receive updates when new articles are published.