Capital Structure and Financial Performance of Moroccan Agricultural Small- and Medium-Sized Enterprises: Moderating Effects of Government Subsidies
Round 1
Reviewer 1 Report
Comments and Suggestions for AuthorsThey are in the attachment.
Comments for author File: 
Comments.pdf
Minor editing is required.
Author Response
Please see the attachment.
Author Response File: Author Response.pdf
Reviewer 2 Report
Comments and Suggestions for Authors1.The abstract indicates the use of fixed effects models, random effects models, ad OLS. Why were both fixed effects models and random effects models used ? What were the results of the Hausman test ? Add a 3-sentence explanation.
2.The first paragraph of the Introduction is irrelevant. Explain the existing capital structure theories and use 2 connecting sentences at the end of paragraph 1 to lead into paragraph 2's topic of capital structure in SMEs.
3. On page 2, remove the paragraph beginning, Situated within the ..... Move the entire Overview of research context into the place of this paragraph. Remove the title of Section 2. These new paragraphs will define the research gap.
4. On page 3, several questions are posed. Restate them as research questions.
5.Page 4, paragraph 1. Add 4 sentences to describe MM's contribution. The independence of capital structure to market value lacks clarity.
6.Add empirical tests evaluating all three theories, i.e. tradeoff pecking order, and agency. Do the tests support these theories. Are there conditions under which the theories hold or do not hold ? Explain.
7.Page 4. In the paragraph on the pecking order theory, the theory's debt equity preferences must be explained in 3 sentences.
8. Write pecking order theory in its full form. Do not use the POT abbreviation, which is confusing.
9.Section 3.1, last paragraph, replace the word 'inaugurated.'
10.Section 3.1. last paragraph on agency theory. Explain the use of debt as a mechanism to align shareholder-manager interests and bolster trust from creditors. What are the shareholder-manager interests ? How are these interests aligned with creditor needs through the use of debt ?
11. Rewrite the title of Section 3.2 as Hypotheses Development.
12.Page 6, first paragraph. Explain why the prioritization of funding sources is explained by SME needs.
13.Section 6.3. Why are only ROA and ROE used as measures of firm performance ?
14.Table 6. Include skewness and kurtosis values to establish the normality of the distribution. A JaqueBera test is advised.
15.Table 9 shows negative Adjusted R squared values. A squared quantity cannot be negative.
16. The first 2 R squared values in Table 9 are very low. Explain.
17.Page 19, Section 7. Where are the robustness checks, and tests of endogeneity ?
Comments on the Quality of English Language
Acceptable. Some editing required.
Author Response
Please see the attachment.
Author Response File: Author Response.pdf
Round 2
Reviewer 2 Report
Comments and Suggestions for AuthorsChanges have beeb made. The paper can be published.
Comments on the Quality of English LanguageMinor editing needed.
