Timor Leste Journal of Business and Management

The Impact of Capital Structure on Profitability: The Role of Firm Value and Risk Management in SMEs in Dili, Timor-Leste

Aderito Lino Monteiro — 2025-12-27

This study examines the impact of capital structure choices on the profitability of small and medium enterprises (SMEs) in Dili, Timor-Leste, with firm value and risk management serving as mediating variables. SMEs play a critical role in the economic development of Timor-Leste, yet their financial performance often hinges on strategic financial decisions, particularly capital structure. Using a quantitative-method approach, this research explores the relationship between debt-equity composition and profitability while assessing how firm value and risk management practices mediate this relationship. Data were collected through distributions of questionnaires with SME owners, managers, and financial officers in Dili, alongside secondary data analysis of financial reports. The findings highlight that balanced capital structure choices significantly enhance profitability, primarily when firms effectively manage financial risks and optimize firm value. Furthermore, the study emphasizes the need for tailored financial strategies and capacity-building initiatives to strengthen SMEs’ resilience and sustainability in Timor-Leste’s evolving economic landscape. The results provide actionable insights for policymakers, financial institutions, and SMEs in adopting robust risk management practices and aligning capital structure strategies with long-term growth objectives.

The Transport Subsidy as a Mediator between Employee Income and Work Effectiveness a Financial Perspective

Don Henrique Daniel Bere — 2026-03-23

This research investigates how transport subsidies function as a mediating factor between employee income and work effectiveness among civil servants in Timor-Leste. The findings indicate that income positively influences effectiveness, while transport subsidies not only reinforce this effect but also independently foster greater discipline, concentration, and productivity by easing financial pressures and commuting challenges. Conceptually, the study emphasizes the relevance of non-wage benefits within the frameworks of Equity Theory and Expectancy Theory. Practically, it demonstrates that incorporating transport subsidies into compensation structures can serve as a strategic approach to enhancing employee performance and strengthening the overall quality of public service delivery.

Good Governance Role for the Relationship between Road Infrastructure Development and Quality of Life of Residents in the Municipality of Viqueque

Osvaldo - Soares — 2026-03-23

This qualitative descriptive study explores the critical role of sound governance principles, specifically transparency, participation, and accountability, in advancing road infrastructure development and, in turn, enhancing the quality of life in rural areas, focusing on the Viqueque municipality of Timor-Leste. Improved community mobility and service accessibility are essential drivers of economic growth in this context. Employing purposive sampling, data were collected from key informants, including local officials, community leaders, and residents, using interviews, observations, and documentation. The collected data were then subjected to content analysis. The findings demonstrate a significant positive relationship, indicating that the application of good governance principles substantially improves infrastructure quality and overall community welfare. Nevertheless, the research identified persistent obstacles, including a lack of transparency, insufficient community participation in decision-making, and budgetary constraints. The study concludes that achieving sustainable road infrastructure development and inclusive growth requires a concerted focus on increased community involvement, strengthened governance mechanisms, and adequate strategic planning to enhance living standards for Viqueque's residents

Influence of Teacher Personality on Job Performance Through Motivation Mediation: A Study at the Regional Secretariat of Education and Social Affairs (SREAS-RAEOA)

Rodrigo Teixeira — 2026-03-23

This study investigates how teacher personality traits affect job performance through the mediation of motivation within the Regional Secretariat of Education and Social Affairs in RAEOA. By examining key personality dimensions and their impact on motivation and performance, the research aims to provide insights into the critical factors that enhance teaching effectiveness and overall job satisfaction in the educational sector. Utilizing a quantitative method with Smart-Partial Least Square (SPLS) analysis, the study examines the relationship between personality traits, motivation, and job performance among 299 respondents. The findings indicate that key personality traits such as conscientiousness, extraversion, agreeableness, and openness to experience significantly enhance teaching effectiveness and job performance. Intrinsic motivation, characterized by personal achievement and passion for teaching, plays a crucial role in driving job performance, while extrinsic motivation, driven by external rewards, also contributes positively. The study underscores the importance of psychological readiness and adaptability in fostering an effective teaching environment. Recommendations include using mixed methods for comprehensive data analysis, expanding research to other industries, and enhancing resources and references for future studies. The research suggests that addressing motivational factors can significantly improve the job performance of teachers, ultimately leading to better educational outcomes.

Budgetary Prioritization for Nature-Based Solutions in Timor-Leste: A Com-parative Analysis of Public Expenditure in Key Ministries

Teresa Freitas Belo — 2026-03-23

This study investigates how Nature-Based Solutions (NbS) are prioritized within Timor-Leste's public finances by looking at spending from 2019 to 2024 across four important ministries: Health, Agriculture and Fisheries (MAF), Public Works (MOPW), and Finance (MoF). The study uses a mixed-methods approach, combining qualitative descriptive analysis with quantitative analysis of secondary data sources, including national statistics, international reference frameworks (WHO, FAO, UNDP, UNEP, World Bank), and the General State Budget (OGE). The budgetary capacity and institutional preparedness for integrating NbS were evaluated by comparing budget allocations to key health and environmental indicators, including child malnutrition, maternal mortality, access to sanitation, malaria incidence, and forest cover. The results show that infrastructure is a major focus. With implementation rates as high as 90%, the MOPW consistently received the largest allocations (USD 138–234 million annually). However, less than 5% of spending went to vital NbS-related sectors like housing, water, and sanitation, with the majority going toward energy and transportation. MAF financing varied from USD 7.6 to USD 28.8 million, with implementation rates of 70–95%, despite minor investments in forestry, watershed management, and food security. Despite a lack of financing that hindered NbS-related and preventative actions, the Ministry of Health managed USD 60–80 million annually. There was still minimal cross-sector integration, notwithstanding the MoF's influence on budgetary governance. The continuing problems of child hunger, forest destruction, and sanitation coverage below 60% have not been resolved by modest budget increases.