Mohd Adib Ismail · Sharlily Shahira Mat Nasir ·Jurnal Ekonomi Malaysia ·2019
Financial resources are an important factor in investment decisions. Access to fnancial resources is a key determinant to increase productivity and consequently generate frm growth. This paper aims to investigate the impact of fnancial constraints, ownership types and structures on frm productivity. This study used annual data of frms listed on the main board of Bursa Malaysia from 2000 to 2015. This study employed system generalized method of moments (GMM) to analyze the impact of fnancial constraints, ownership and other control variables on productivity. The results show that fnancial constraints, and the ownership types and structures cause different impacts on frm productivity. Using the sub-sample analyses of government, private and foreign frms, the results indicates that foreign frms are most affected by fnancial constraints followed by government frms and private frms. In the negative liquidity situation, the fnancial constraints faced by government and private frms have increased. Meanwhile, exports have managed to reduce the impact of fnancial constraints on foreign frms. The analysis of ownership structure analysis fnds that it does not affect frm productivity. Hence, to boost domestic economic growth policy makers should formulate strategies that support frm fnancial aspect to ensure increased productivity and growth of local frms in Malaysia.