SMEs fintech financing: does board governance matter?

Keywords: Fintech Financing, Apply Finance, CEO Duality, Board structure

Abstract

The purpose of this study is to examine the board governance factors that influence a small and medium enterprise’s (SME’s) decision toward fintech financing. A structured questionnaire survey of 90 Malaysian SMEs was used and the data analyzed using the Heckman selection model and the marginal effect model. The results demonstrate that SMEs’ female board members, family board members, and the duality of their CEOs have a significant influence on their decision to obtain financing from fintech platforms. Professional services provided by experts have a negative influence on their decisions to engage in fintech financing. The SMEs’ board size, the length of their chairmen’s service, and non-family board members are negatively related to their decisions to apply for financing. The more male members that were on the board, the more likely the SME was to choose to apply for external financing during the survey year.

Author Biographies

Zuriawati Zakaria, Universiti Tunku Abdul Rahman

Zakaria, Zuriawati, is an Assistant Professor in Faculty of Business and Finance, University Tunku Abdul Rahman (UTAR), Malaysia. She earned her Doctor of Philosophy (Corporate Finance) from Universiti Sains Malaysia. Her research interest in the area of pay-out policy, capital structure, corporate governance, fintech, digital technology and green practice. She has publications in International Journal of Innovation, Creativity and Change, Asian Social Science, and International Journal of Economics and Management and others

Author’s contact detail: Address: Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Jalan Universiti, Bandar Barat, 31900 Kampar, Perak, Malaysia; phone number: 013-3081886; Email: zuriawatiz@utar.edu.my

Yoke Chin Kuah, Universiti Tunku Abdul Rahman

Kuah, Yoke Chin, is an Assistant Professor in Faculty of Business & Finance, University Tunku Abdul Rahman (UTAR), Malaysia. She earned her Doctor of Philosophy (Finance) from University Tunku Abdul Rahman. Her research interest fields are Finance and Economics. She has a publication in Global Business Review, Journal of Halal Industry and Services, International Journal of Economics and Management, and others.

Author’s contact detail: Address: Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Jalan Universiti, Bandar Barat, 31900 Kampar, Perak, Malaysia; phone number: 012-6720588; Email: kuahyc@utar.ed.my

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Published
2024-05-02
How to Cite
Zakaria, Z., & Kuah, Y. C. (2024). SMEs fintech financing: does board governance matter?. Gadjah Mada International Journal of Business, 26(2), 185-207. Retrieved from https://journal.ugm.ac.id/v3/gamaijb/article/view/14790
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Articles