Mohd Hasimi Yaacob

Board Structure, Capital Structure and Dividend Per Share: Is there Interaction Effect?

This study examines the direct effects of firm�s characteristics such as board structure and capital structure on divided per share as a proxy of firm�s performance and interaction between board structure and capital structure on dividend. The fixed effect regression uses a sample of 361 non-financial Malaysian listed firms over the period of 2002 to 2007. The decision made by the board of directors with duality role of Chairman cum Chief Executive Officer and larger board size to pay dividend demonstrates that duality role of chairman cum chief executive officer have negative effect on dividend payment but not outside independent director(s). The interaction between board structure namely duality, independent directors, board size and capital structure namely debt ratio reveals that duality weakens the negative effect of debt ratio on dividend while independent directors strengthens the negative effect of debt ratio on dividend payment. Overall, the results of this study may be summarized to suggest that distributable income to shareholders increases through a balanced financing decision between capital structure choice and dividend payment made by the board of directors that possessed duality role.

Financial Influences on Export Status of Small and Medium-Sized Enterprises in an Emerging Economy

The purpose of this study is to understand financial and behavioural influences on the export status of small and medium-sized enterprises (SMEs) in an emerging economy. In particular, we tested the direct effects of perceived costs, internal financial resources and external capital constraint on the export status of SMEs. We also tested the moderating effect of cost sensitivity on two types of perceived export costs. Survey data was collected from 356 SMEs in Malaysia and analysed using logistic regression. The results show that exporters perceive higher ongoing costs but lower initiation costs of exporting. They also perceive higher internal financial resources, fewer constraints in accessing external capital and are more sensitive towards costs compared to non-exporters. Furthermore, we found that cost sensitivity moderates the relationship between perceived costs and export status.

Do Competitive Advantages in the Local Market Encourage Firms to Export

Trade liberalization offers exporting opportunities for firms around the world. However, little is known if firms export as a strategy for leveraging their competitive advantages in the local market into the international level. The purpose of this study is to examine the effect of competitive advantages in the local market on the export intention of manufacturing-based small and medium sized enterprises (SMEs) in an emerging economy. In particular, we test hypotheses on generic competitive advantages of cost, differentiation, focus, and integrated advantages on a sample of 140 SMEs in Malaysia. Using OLS regression, the results depict that differentiation, focus and integrated differentiation-focus advantages encourage firms to export. However, cost advantage does not significantly affect the export intention, while integrated cost-focus advantage holds firms back from going abroad. This study contributes by defining the types of competitive advantages in the local market that encourage domestic firms in developing countries to initiate exporting.