A model of capital structure decision making in small firms

1998 ◽  
Vol 5 (3) ◽  
pp. 246-260 ◽  
Author(s):  
Nicos Michaelas ◽  
Francis Chittenden ◽  
Panikkos Poutziouris
Keyword(s):  
Decision Making ◽  
Capital Structure ◽  
Small Firms

scholarly journals The Effects of Insider Ownership Capital Structure of Main Board Listed Companies

2017 ◽  
Vol 2 (1) ◽  
pp. 43
Author(s):  
Yeen Lai, Khong ◽  
Peck Ling, Tee ◽  
Mahendra Kumar A/l Chelliah
Keyword(s):  
Decision Making ◽  
Capital Structure ◽  
Internal Control ◽  
Conflict Of Interest ◽  
Small Firms ◽  
Board Members ◽  
Insider Ownership ◽  
The Public ◽  
Listing Requirement ◽  
Public Listing

<em>In this paper, researcher tends to discuss the “internal control protects shareholders from agency problem”. The term of insider ownership refer to the shareholders who manage the company as well. In other words, the managers are also the owner of the company. Hence, the conflict of interest between the shareholders and managers will reduce as the higher on concentration insider ownership. In this study, insider ownership expressed as the percentage of the firm’s outstanding share held by the insider. Insider ownership can be classified into outstanding share held by directors, director’s family members (e.g., spouse and siblings), board members and employees’ share option scheme committees. Family or insider groups as a significant shareholder is more likely to be interested in control benefit as well as profit and decision making (Teall, 2007). Small firms usually are higher in insider ownership than outsider control. When a firm expands the business through public listing, the ownership will distribute ownership opportunity to the public. In Malaysia, when go to public listing, the 30% shares must hold by bumiputra. If there are non-bumiputra companies, the companies will gather 30% shares from outsiders who are bumiputra to meet the listing requirement.</em>

scholarly journals THE EFFECT OF COGNITIVE AND EMOTIONAL BIASES ON THE CAPITAL STRUCTURE DECISIONS: A LITERATURE REVIEW

2014 ◽  
Vol 8 (2) ◽  
Author(s):  
Tekin Bilgehan ◽  
Gor Yusuf
Keyword(s):  
Decision Making ◽  
Capital Structure ◽  
Behavioral Finance ◽  
Point Of View ◽  
Decision Makers ◽  
Empirical Literature ◽  
Behavioral Characteristics ◽  
Strategic Choices ◽  
Emotional Process ◽  
The Capital Structure

Each decision-making process is an important cognitive and emotional process which is open to the emotional effect. Individuals make a decision about a future uncertainty either to feel good or maximizing gain by minimizing the loss ratio. Recently, researches in finance have criticized that the capital structure decisions and firms’ funding and strategic choices deviate from the traditional neoclassical paradigm. Furthermore there is a nascent empirical literature that has exposed interesting evidence of the effects of managerial behavioral biases. Managers’ decisions, that to create the capital structure, have a vital importance for the company. The behavioral finance (BF) approach may be revealed useful results in the process of solving decision-makers’ behaviors and thoughts. In this context the purpose of this study is to reveal if the managers are affected by their behavioral characteristics in the process of the financing decision-making, based on the findings of studies in the literature. From this point of view behavioral finance literature, which is about the financing and capital structure decisions, is investigated. As a result, theoretical and empirical analyses, which discussed in the literature, show that managers’ biases play an important role in explaining the capital structure choice.

The Human Resource Factor in Small Business Decision Making

1985 ◽  
Vol 10 (2) ◽  
pp. 53-62 ◽  
Author(s):  
Joseph R. Rocha ◽  
M. Riaz Khan
Keyword(s):  
Decision Making ◽  
Resource Management ◽  
Small Business ◽  
Human Resource Management ◽  
Human Resource ◽  
Small Firms ◽  
Counseling Program ◽  
Business Decision ◽  
Functional Areas ◽  
Resource Factor

Activities of a group of small firms were studied over a six-year period to determine the manner In which their performance reflected the results of a counseling program. The effects of counseling In a number of functional areas were explored. Findings of the Investigation suggest that while adequate attention to marketing, financial, and technological matters Is essential, firms that Ignore the requirements of sound human resource management may fall to remain competitive.

scholarly journals Growth history, knowledge intensity and capital structure in small firms

2004 ◽  
Vol 6 (1) ◽  
pp. 73-89 ◽  
Author(s):  
Stewart Thornhill ◽  
Guy Gellatly ◽  
Allan Riding
Keyword(s):  
Capital Structure ◽  
Small Firms ◽  
Growth History

FINANCIAL ACCOUNTING AND REPORTING IN SMALL FIRMS

1996 ◽  
Vol 04 (02) ◽  
pp. 163-182
Author(s):  
A.J.M. Humayun Murshed
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Small Firms ◽  
Financial Statements ◽  
Financial Accounting ◽  
Organizational Decision Making ◽  
Business World ◽  
Degree Of Satisfaction ◽  
Modern Business ◽  
And Control

Small firms’ role in the modern business world is well recognized. Despite such recognition, there exists a dearth of research in small firms, particularly in understanding the implications of accounting and finance. This paper reports the results of an empirical study carried out on the financial accounting and reporting of small firms in Bangladesh. Financial reporting does not seem to be important in these firms except for complying with tax formalities. No systematic way of presenting financial figures among the firms was observed. Most firms’ financial statements do not provide any database for organizational decision making. The managers have a high degree of satisfaction, particularly with the format used in presenting financial statements. On the contrary, they hardly use those financial statements in organizational decision making and control. They prefer to use a simple form of financial statement and show almost no concern for users’ need and attaining financial control.

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