The impact of financial decisions and manager characteristics to firm's financial performance in SMEs: Bibliometric and systematic analysis

This study examines the impact of financial decisions and managerial characteristics on the financial performance of Small and Medium Enterprises (SMEs), an emerging market characterized by economic volatility and limited access to capital. Using a dataset of 911 empirical studies sourced from the Scopus database, we employ both bibliometric and systematic analyses to explore the nuanced dynamics of capital structure, investment, and working capital management within SMEs. The study also investigates the moderating effects of managerial traits, such as education, experience, and risk propensity, on the relationship between financial decision-making and firm performance. Our findings reveal significant research gaps, particularly in the application of integrated theoretical frameworks like Pecking Order Theory, Trade-off Theory, Agency Theory, Behavioral Finance Theory, Working Capital Management Theory and the Resource-Based View within the SME context. By providing empirical evidence from SMEs, this research highlights the critical need for more region-specific studies to develop tailored financial decision-making that enhance firm performance in emerging markets. The results are intended to guide policymakers, financial institutions, and SME managers in improving financial decision-making processes and performance outcomes in similar economic contexts.