Does Gender Matter in the Relationship between Money Attitudes and Loan Default? A case study among Small and Medium Enterprises (SMEs) Owner-managers

International Journal of Economics and Management Studies
© 2020 by SSRG - IJEMS Journal
Volume 7 Issue 9
Year of Publication : 2020
Authors : Dr. Jihan Ahmad
How to Cite?

Dr. Jihan Ahmad, "Does Gender Matter in the Relationship between Money Attitudes and Loan Default? A case study among Small and Medium Enterprises (SMEs) Owner-managers," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 9, pp. 79-88, 2020. Crossref,


Small and Medium Enterprises (SMEs) play an important role in most economies, particularly in developing countries. However, the fast-growing and the honoured of importance roles contributed by SMEs have been shadowed bytheir high rate of bankruptcy and have been criticized for poor loan quality management, which leads to loan default. Even there are abundant previous research has been conducted to study the ability of SMEs, only a few had a look at the money attitude as the determinant factor. Thus, the objectives of this study are to access the significant relationship of the determinant factor that influence SME owner-manager decision to default on loan repayment.This study employed a cross-sectional research design in which 612 questionnaires were distributed to the SME owner-manager within the state of Kedah, Malaysia. The data is analyzed by PLS-SEM using SmartPLS 3.0. The finding explained that Power-prestige, Retention-time have a significant relationship on Loan Default while the interaction effect of gender has no significant effect on the relationship. The study empirically supports the Default Behaviour Theory that perceived individual choices to default are driven by different determinant factors. In addition, the finding could be presumed as a guide to the SMEs to understand the attitude and characteristics they hold to make the decision and perform their financial management commitment. The feature of cross-sectional data employed in his study, which were collected at one point in time, restricted the researcher from observing and, consequently, examining the dynamic feature of the effects of determinant factors on loan default.


SMEs, Owner-manager, Loan Default, Power-prestige, Retention-time, Religiosity.


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