Author

  • Nurulhasanah Abdul Rahman

    • Universiti Sains Malaysia, Penang, Malaysia
    • Malaysia
  • Zulnaidi Yaacob

    • Universiti Sains Malaysia, Penang, Malaysia
    • Malaysia
  • Rafisah Mat Radzi

    • Universiti Sains Malaysia, Penang, Malaysia
    • Malaysia

Abstract

This paper aims to develop a theoretical model of potential determinants of effective financial risk management in small business. In achieving this objective, the methodology used includes library search and analyzing previous literature review on the subject of financial risk management and small business especially in Malaysia case study. The significant variables are namely the leadership, training programs, use of technology, entrepreneurship orientation (EO) and accounting information. This paper also hopes to strengthen the body of knowledge on how financial risk management helps small business towards success, besides to act as a reference for empirical research.

Keywords

References

  • Aebi, V., Sabato, G. & Schmid, M. (2012). Risk management, corporate governance, and bank performance in the financial crisis. Journal of Banking & Finance , 36(12), 3213-3226.
  • Alam, S. S., Jani, M. F. M. & Omar, N. A. (2011). An Empirical Study of Success Factors of Women Entrepreneurs in Southern Region in Malaysia. International Journal of Economics and Finance , 2(1)
  • Andersen, T. G., Bollerslev, T., Christoffersen, P. F. & Diebold, F. X. (2013). Financial Risk Measurement for Financial Risk Management. Handbook of the Economics of Finance, 1128-1218.
  • Antonites, A. J. & Wordsworth, R. (2009). Risk tolerance: A perspective on entrepreneurship education. Southern African Business Review , 13(3), 69-85.
  • Aziz, Y. A., Awang, K. W. & Zaiton, S. (2012). Challenges Faced by Micro, Small, and Medium Lodgings in Kelantan, Malaysia. International Journal of Economics and Management , 6(1), 167-190.
  • Berg, H. (2010). Risk management. Procedures, methods and experiences , 2(17), 79-95.
  • Berry, T., Sweeting, B., Goto, J. & Taylor, M. (2002). Financial Management practice amongst SMEs. Working paper series, Manchester Metropolitan University.
  • Bolden, R. (2007). Leadership Development in SMEs: Designing a customized solution. University of Exeter: Centre for Leadership Studies.
  • Chong, W. Y. (2012). Critical Success Factors for Small and Medium Enterprises: Perceptions of Entrepreneurs in Urban Malaysia. Journal of Business and Policy Research , 7(4), 204–215.
  • CPA Australia. (2009). Risk Management Guide for small to medium businesses. CPA Australia Business and Management Centre of Excellence.
  • Damant, D. (2003). Accounting standards: a new era. Balance Sheets , 11(1), 9-20
  • Deakins, D., Logan, D. & Steel, L. (2001). The Financial Management of Small Enterprise. Accountants Chartered Certified Association Research Report , (4), 5-55.
  • Dinu, A. M. (2013). Risk in financial transactions and financial risk management. Procedia - Social and Behavioral Sciences , 116 (1), 2458 – 2461.
  • Dionne, G. & Triki, T. (2003). On risk management determinants: what does really work? Department of Finance and risk management chair, HEC Montreal.
  • Duong, L. (2005). Effective risk management strategies for small-medium enterprises and micro companies a case study for Viope Solutions Ltd. Degree Thesis: International Business.
  • Fairoz, M. F., Hirobumi, T. H. & Tanaka, Y. (2010). Entrepreneurial Orientation and Business Performance of Small and Medium Scale Enterprises of Hambantota District Sri Lanka. Journal of Asian Social Science , 6( 3 ), 34-46.
  • Fatimah-Salwa, A. H., Mohd Azahari, A. & Joni-Tamkin, B. (2013). Success Factors of Successful Microcredit Entrepreneurs: Empirical Evidence from Malaysia. International Journal of Business and Social Science, 4(5), 153-159.
  • Fatoki, O. (2012). An Investigation into the Financial Management Practices of New Micro-enterprises in South Africa. Journal of Social Science, 33(2), 179-188.
  • Gitman, L. J. (2007). Principles of Managerial Finance . New York: Addison Wesley.
  • McClelland, D. C., Rhinesmith, S. & Kristensen, R. (1975). The effects of power training on community action agencies. Journal of Applied Behavioral Sciences , 11, 92-115.
  • Management Study Guide. (2011). Financial Management Meaning, Objectives and Functions. Retrieved February 10, 2012 from http://www.managementstudyguide.com/financialmanagement.htm
  • Mulhern, A. (1995). The SME Sector in Europe: A Broad Perspective . Journal of Small Business Management , 33, 83-87.
  • Oduware, U. (2011). Overview of Financial Management. Retrieved January 18, 2012 from http://www.isearch.im/pdf/1/chapter-1-overview- of-financial-management.html
  • Panigrahi, A. K. (2011). Risk Management in Micro, Small and Medium Enterprises (MSMEs) in India: A Critical Appraisal. Asia Pacific Journal of Marketing & Management Review , 1(4), 59-72.
  • Radam, A., Abu, M. L. & Abdullah, A. M. (2008). Technical Efficiency of Small and Medium Enterprise in Malaysia: A Stochastic Frontier Production Model. International Journal of Economics and Management , 2(2), 395-408.
  • Rao, S. S. & Metts, G. (2003). Electronic commerce development in small and medium sized enterprises: a stage model and its implications. Business Process Management Journal , 9(1), 11–32.
  • Rauch, A. & Frese, M. (2000). Psychological approaches to entrepreneurial success. A general model and an overview of findings. International Review of Industrial and Organizational Psychology , 3, 101-142.
  • Shahwan, Y. & Al-Ain (2008). Qualitative characteristics of financial reporting: a historical perspective. Journal of Applied Accounting Research, 9(3), 192-202.
  • SMEInfo. (2011). Retrieved March 23, 2014 from http://www.smeinfo.com.my/ SME Corporation Malaysia (Official Website). (2011). Retrieved February 26, 2014 from http://www.smecorp.gov.my/vn2/
  • Virdi, A. A. (2005). Risk Management among SMEs. Retrieved from http://www.cpaireland.ie/docs/defaultsource/business-resource/icaew---risk-management-among-smes.pdf?sfvrsn=2
  • Xu, H., Nord, J. H., Nord, G. D. & Lin, B. (2003). Key issues of accounting information quality management: Australian case studies. Industrial Management and Data Systems , 103(7), 461-470.

Downloads

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

Abdul Rahman, N., Yaacob, Z., & Mat Radzi, R. (2015). Determinants of Effective Financial Risk Management in Small Business: A Theoretical Framework. Information Management and Business Review, 7(2), 87-92. https://doi.org/10.22610/imbr.v7i2.1143

Share this article

Section

Research Paper

Published

2015-04-30

Submissions

Have research to publish? Information Management and Business Review welcomes submissions.

Make a Submission