THE IMPACT OF MANAGERIAL CHARACTERISTICS ON CAPITAL STRUCTURE IN MALAYSIAN MANUFACTURING SMES

Abstract

Access to capital is a critical factor in stimulating small business creation and growth especially in developing companies. The failure of small business entities in securing the needed capital would entail them remaining small and limit their ability to create goods, services, and innovations in the marketplace, including jobs. This study focuses on manufacturing SMEs by examining the influence of managerial characteristics (age, gender, work experience and level of education) on capital structure towards technology improvement. Based on a survey of 219 respondents, the results indicated that male managers, managers with a lot of work experience and educated managers preferred internal and external financing. Furthermore, internal and external financing also showed positive relationships to improve manufacturing technology The International Journal of Banking and Finance, Vol. 15. Number 1, 2020: 21-37 21 22 The International Journal of Banking and Finance, Vol. 15, No 1, 2020 : 21-37