Financial Factors Affecting on Investment Decision of Organic Agribusiness SMEs in Chiang Mai Province, Thailand
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Abstract
Small and Medium Enterprises (SMEs) contribute immensely to the economic development of any country especial in Thailand. SMEs have to know about financial management combined with the uncertainty of the business environment which often leads SMEs to serious problems regarding financial performances. Organic agribusiness SMEs is the one of businesses which give precedence to develop on investment as well. In addition, the main objective of this study explores financial factors affecting investment decision of organic agribusiness SMEs by finding the effect between financial factors and investment decision. Primary data is collected by using questionnaires, and a multiple regression analysis is applied to determine the relationship of financial factors and investment decisions, independent variables are 4 financial variables which are working capital management, capital budgeting evaluation, debt financing, and equity financing. Dependent variables are investment decisions including cash, account receivable, inventory, and fix assets. Therefore, the results indicate significant effects among capital budgeting evaluation, debt financing, equity financing and investment decision which are positive relationships. However, there is the insignificant effect between working capital management and investment decision for SMEs in organic agribusiness. Moreover, SMEs organic agribusiness have to pay more attention on every financial factors which can be useful for investment decision making and make more benefit for their organic agribusiness also.
Article Details
The article must be considered and accepted for publication by the editorial board of the Faculty of Management Science, Lampang Rajabhat University. The articles have been reviewed by a peer (peer review) and the author must update according to the suggestion if available before publication. Articles that are not considered the editorial team will inform the results of the consideration but will not send the original to the author.
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