The Influence of Institutional Pressures and Personal Attributes on Perceived Importance of Financial Reporting Among Micro-Entrepreneurs: Evidence from Malaysia

Mazni Abdullah () and Nur Jannah Jamaluddin
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Mazni Abdullah: Faculty of Business and Economics, Universiti Malaya, Kuala Lumpur 50603, Malaysia
Nur Jannah Jamaluddin: Faculty of Business and Economics, Universiti Malaya, Kuala Lumpur 50603, Malaysia

JRFM, 2025, vol. 18, issue 10, 1-19

Abstract: This study examines the influence of institutional pressures and personal attributes on the perceived importance of financial reporting among micro-entrepreneurs in Malaysia. Survey data from 194 micro-entrepreneurs were analyzed using ordinary least squares (OLS) regression to test the proposed hypotheses. The results indicate that institutional pressures from Malaysian regulatory bodies, particularly the Inland Revenue Board, and the financial literacy of micro-entrepreneurs are significantly associated with stronger perceptions of the importance of financial reporting. These findings offer practical insights for policymakers and stakeholders seeking to enhance reporting practices and promote financial literacy within the microenterprise sector. While prior research has largely concentrated on small and medium-sized enterprises (SMEs), the financial reporting practices of micro-enterprises remain underexplored, despite their distinctive characteristics and critical role in the economy. By addressing this gap, this study enriches the financial reporting literature and advances a broader understanding of micro, small, and medium-sized enterprises (MSMEs).

Keywords: micro-entrepreneurs; financial reporting; financial literacy; gender; education; accounting background; institutional pressures; MSME (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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