Determinants of SMEs’ financial performance: evidence from an emerging economy

Abstract

Financial performance (FP) is important to every firm, especially SMEs, but FP determinants are debatable. This paper investigates determinants of FP among Ghanaian SMEs. Employing a survey data set of 238 SMEs, multiple regression analysis was performed to determine the extent to which each firm-specific characteristic and industry impact FP. The findings show that a significant relationship exists between company ownership type and FP. There is also a positive link between firm age, firm size, and FP. The industry effect is significant in the service sector. The results also show that the impact of firm-specific characteristics and industry differs across the sub-components of FP and manufacturing and service industries. The results demonstrate the relevance of the tenets of resource base view and structure-conduct-performance in explaining the SMEs' FP variations in a developing country’s context. The managerial and policy implications of the findings for both sectors have been discussed.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 67 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.