This paper aims to investigate the extent to which Malaysian small- and medium-sized enterprises （SMEs） adopted corporate governance （CG） principles and their effects on firm performance. The principles examined i...This paper aims to investigate the extent to which Malaysian small- and medium-sized enterprises （SMEs） adopted corporate governance （CG） principles and their effects on firm performance. The principles examined included： establishing clear roles and responsibilities; strengthening composition; and reinforcing independence. The paper is based on a questionnaire survey study among 113 SMEs that consisted of 35% （39） of manufacturing and related services and 65% （74） from services including information and communication technology （ICT）, primary agriculture, construction, mining, and quarrying. The analysis of the data indicates that 32% of the respondents said that the primary reason why they have their own business is to have control over their own working life. This fmding appears to confirm the f＇mancing theory that SMEs owners have other goals than profitability. In addition, 30% of SMEs perceived that the most important role played by the board is risk management; hence, these boards have a greater control over financial risks that may lead to better financial performance. The analysis also shows that 81% of the respondents＇ board consisted of internal board members only. These enterprises need to see the important role of external board members as a source of advice providers and experts to them. For policies relating to clear roles and responsibilities of board, only 28% of the respondents established clear functions reserved for the board and those delegated to management; substantial respondents did not draw up policies relating to reinforce board independency （between 75% and 79%） and to strengthen board composition （46%）. Besides, 68% of the respondents have the position of chairman and CEO held by same individuals and 81% of the chairman is an executive member of the board. These findings suggest that SMEs cannot see the importance of strengthening board and having independent board members. Regression analysis also indicates that board independence has a significant and positive impact on firm performance. Hence, SMEs need to appreciate networking advantages, competency, and strategic knowledge that the right board can offer. The governmental ministries and agencies in Malaysia need to take active measures to encourage SMEs to strengthen their board governance, because SMEs are the important economic powers for stimulating national economic growth. This paper contributes to the empirical literatures on the adoption of CG principles and their effects on SMEs＇ firm performance in emerging markets.展开更多
The small-medium sized enterprise （SME） in China has made considerable progress and been the main power to promote the regional economic development. SME cluster at the small town in the developed areas along the ea...The small-medium sized enterprise （SME） in China has made considerable progress and been the main power to promote the regional economic development. SME cluster at the small town in the developed areas along the east coast of China. This paper analyses the relationship between SME cluster and the economic development of small towns. The conclusion is that SME cluster is the direction of the small town＇s development. The special cultural tradition and value conception are the important location conditions to develop SME cluster. In the end, the author provides some countermeasures to develop SME clusters in the small towns.展开更多
Until the early 1990s Croatia has been neglecting, and even underestimating the significance, the role, the needs, and the results of small businesses （small and medium entrepreneurship）. Complete attention was focu...Until the early 1990s Croatia has been neglecting, and even underestimating the significance, the role, the needs, and the results of small businesses （small and medium entrepreneurship）. Complete attention was focused on big companies. Relatively late, in 2002, small businesses, within the statutory legislation, have gotten its appropriate legal status and economic relevance. Today it is treated as a ＂basic necessity＂ of every society and a generator of economic development. But, economic crisis that has been present since 2008 has manifested all of its negativities, which has reflected on the present state of the economy, the whole society, and it is also shown from the results and some relevant indicators.展开更多
The stability of money demand function is an important issue in macroeconomic policy implementation. Money demand of Korean economy was estimated. Cointegration test with time dummy variables results show that there i...The stability of money demand function is an important issue in macroeconomic policy implementation. Money demand of Korean economy was estimated. Cointegration test with time dummy variables results show that there is not only long-run equilibrium relationship between money demand and macroeconomic variables, but also structural breaks in this equilibrium relationships. Least squares, state-space, and Marcov switching methods show that there also has been instability （or regime shifts） of parameters in money demand, especially over 1997 crisis and the early 2000s. This fact implies that monetary policy for stabilization might encounter big problems due to change （instability） of money demand.展开更多
文摘This paper aims to investigate the extent to which Malaysian small- and medium-sized enterprises （SMEs） adopted corporate governance （CG） principles and their effects on firm performance. The principles examined included： establishing clear roles and responsibilities; strengthening composition; and reinforcing independence. The paper is based on a questionnaire survey study among 113 SMEs that consisted of 35% （39） of manufacturing and related services and 65% （74） from services including information and communication technology （ICT）, primary agriculture, construction, mining, and quarrying. The analysis of the data indicates that 32% of the respondents said that the primary reason why they have their own business is to have control over their own working life. This fmding appears to confirm the f＇mancing theory that SMEs owners have other goals than profitability. In addition, 30% of SMEs perceived that the most important role played by the board is risk management; hence, these boards have a greater control over financial risks that may lead to better financial performance. The analysis also shows that 81% of the respondents＇ board consisted of internal board members only. These enterprises need to see the important role of external board members as a source of advice providers and experts to them. For policies relating to clear roles and responsibilities of board, only 28% of the respondents established clear functions reserved for the board and those delegated to management; substantial respondents did not draw up policies relating to reinforce board independency （between 75% and 79%） and to strengthen board composition （46%）. Besides, 68% of the respondents have the position of chairman and CEO held by same individuals and 81% of the chairman is an executive member of the board. These findings suggest that SMEs cannot see the importance of strengthening board and having independent board members. Regression analysis also indicates that board independence has a significant and positive impact on firm performance. Hence, SMEs need to appreciate networking advantages, competency, and strategic knowledge that the right board can offer. The governmental ministries and agencies in Malaysia need to take active measures to encourage SMEs to strengthen their board governance, because SMEs are the important economic powers for stimulating national economic growth. This paper contributes to the empirical literatures on the adoption of CG principles and their effects on SMEs＇ firm performance in emerging markets.
文摘The small-medium sized enterprise （SME） in China has made considerable progress and been the main power to promote the regional economic development. SME cluster at the small town in the developed areas along the east coast of China. This paper analyses the relationship between SME cluster and the economic development of small towns. The conclusion is that SME cluster is the direction of the small town＇s development. The special cultural tradition and value conception are the important location conditions to develop SME cluster. In the end, the author provides some countermeasures to develop SME clusters in the small towns.
文摘Until the early 1990s Croatia has been neglecting, and even underestimating the significance, the role, the needs, and the results of small businesses （small and medium entrepreneurship）. Complete attention was focused on big companies. Relatively late, in 2002, small businesses, within the statutory legislation, have gotten its appropriate legal status and economic relevance. Today it is treated as a ＂basic necessity＂ of every society and a generator of economic development. But, economic crisis that has been present since 2008 has manifested all of its negativities, which has reflected on the present state of the economy, the whole society, and it is also shown from the results and some relevant indicators.
文摘The stability of money demand function is an important issue in macroeconomic policy implementation. Money demand of Korean economy was estimated. Cointegration test with time dummy variables results show that there is not only long-run equilibrium relationship between money demand and macroeconomic variables, but also structural breaks in this equilibrium relationships. Least squares, state-space, and Marcov switching methods show that there also has been instability （or regime shifts） of parameters in money demand, especially over 1997 crisis and the early 2000s. This fact implies that monetary policy for stabilization might encounter big problems due to change （instability） of money demand.
