Managers’ Perception and Attitude toward Financial Risks Associated with SMEs: Analytic Hierarchy Process Approach-Reference-Cited by-同舟云学术

Managers’ Perception and Attitude toward Financial Risks Associated with SMEs: Analytic Hierarchy Process Approach

Published:2023-02-01 Issue:2 Volume:16 Page:86
ISSN:1911-8074
Container-title:Journal of Risk and Financial Management
language:en
Short-container-title:JRFM

Author:

Alrawad Mahmaod¹²^ORCID,Lutfi Abdalwali³⁴^ORCID,Almaiah Mohammed Amin⁵⁶⁷^ORCID,Alsyouf Adi⁸^ORCID,Al-Khasawneh Akif Lutfi⁹,Arafa Hussin Mostafa¹¹⁰,Ahmed Nazar Ali¹¹¹,AboAlkhair Ahmad M.¹¹²^ORCID,Tork Magdy³

Affiliation:

1. Quantitative Method, College of Business Administration, King Faisal University, Al Ahsa 31982, Saudi Arabia

2. College of Business Administration and Economics, Al-Hussein Bin Talal University, Ma’an 71111, Jordan

3. Department of Accounting, College of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia

4. Applied Science Research Center, Applied Science Private University, Amman 11931, Jordan

5. Department of Computer Networks, College of Computer Sciences and Information Technology, King Faisal University, Al-Ahsa 31982, Saudi Arabia

6. Faculty of Information Technology, Applied Science Private University, Amman 11931, Jordan

7. Department of Computer Science, King Abdullah the II IT School, The University of Jordan, Amman 11942, Jordan

8. Department of Managing Health Services and Hospitals, Faculty of Business Rabigh, College of Business (COB), King Abdulaziz University, Jeddah 21991, Saudi Arabia

9. Financial and Administrative Sciences Department, AL-Balqa’ Applied University, Irbid University College, Irbid 1293, Jordan

10. Department of Statistics, Mathematics and Insurance Faculty of Commerce, Assiut University, Assiut 71515, Egypt

11. Insurance Department, Faculty of Commerce, Al-Neelain University, Khartoum 11121, Sudan

12. Department of Applied Statistics and Insurance, Mansoura University, Mansoura 35516, Egypt

Abstract

This study aimed to identify financial and cash flow risks associated with SMEs and investigated how managers perceived these risks using the analytical hierarchical process (AHP). Accordingly, a three-level decision model was structured using two criteria, probability and consequences, and a list of six different types of risks as decision alternatives. Data were collected by a survey questionnaire from SME managers/owners and analyzed in accordance with the AHP method. The results show that the priority weight for risk criteria was 52% for probability and 48% for consequences. Further, with an average weight of 18.8%, the risk of an increase in bank charges ranked as the highest type of risk faced by SMEs. However, the risk of low or no profits was ranked as the lowest with an average weight of 13.4%. This study is one of the few, if not the first, to investigate SME managers’ perceptions using an AHP method and to provide insightful information on how SME managers/owners perceived various financial and cash flow risks. The study results may support the use of the AHP method in understanding managers’ perceptions and attitudes toward various types of risks associated with SMEs.

Funder

King Faisal University, Saudi Arabia

Publisher

MDPI AG

Subject

Finance,Economics and Econometrics,Accounting,Business, Management and Accounting (miscellaneous)

Link

https://www.mdpi.com/1911-8074/16/2/86/pdf

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