International Journal of Multidisciplinary Research and Growth Evaluation  |  ISSN (Online): 2582-7138  |  Double-Blind Peer Review  |  Open Access  |  CC BY 4.0

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     2026:7/3

International Journal of Multidisciplinary Research and Growth Evaluation

ISSN (Online): 2582-7138 | Open Access

Analysis of the Influence of Financial Performance on Financing Decisions in Small and Medium Enterprises

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Volume: 6 | Issue: 2 | Pages: 979-981

Subject: Business

Country: Indonesia

License: CC BY 4.0

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Abstract

This study analyzes the effect of financial performance on financing decisions in Small and Medium Enterprises (SMEs) in the Sunggal area, Medan City. Factors that affect the financial performance of SMEs, such as capital structure, leverage ratio, and current ratio, are the main concerns in this study. The research method used is quantitative with simple linear regression analysis technique to determine the relationship between financial performance and financing decisions. The results showed that the financial performance variable did not have a significant influence on financing decisions, with a T-test significance value of 0.081 (> 0.05). This indicates that SMEs' financing decisions are more influenced by factors other than financial performance. This finding provides implications for SMEs and the government to pay more attention to other aspects in making financing decisions, such as credit accessibility and more flexible financing policies.

How to Cite This Article

Gaston Coria Putra Wau, Reniati Hulu, Dede Ansyari Guci, Puspa Liza Ghazali (2025). Analysis of the Influence of Financial Performance on Financing Decisions in Small and Medium Enterprises . International Journal of Multidisciplinary Research and Growth Evaluation (IJMRGE), 6(2), 979-981.

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Publication Information

Journal: International Journal of Multidisciplinary Research and Growth Evaluation (IJMRGE)

Publisher: Anfo Publication House

ISSN: 2582-7138 (Online)

Frequency: Bimonthly

Language: English

Open Access: Yes - This article is distributed under the terms of the Creative Commons Attribution 4.0 International License

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