Does Export Intensity Affect Corporate Leverage? Evidence from Portuguese SMEs
19 Pages Posted: 18 Apr 2019 Last revised: 29 Jan 2020
Date Written: August 10, 2019
This paper examines the effect of export intensity on a firm's capital structure using a sample of 7,676 Portuguese SMEs. Results obtained from a system GMM estimation method show that the leverage ratio is negatively affected by export intensity. We document that firms with more growth opportunities have a higher leverage, while firms that have more profits, higher asset tangibility and face higher business risk have lower debt ratios. Our results also show that the implementation of governmental mechanisms that support export firms’ borrowing activities are critical in economies facing a financial crisis.
Keywords: Financing Decisions, Capital Structure, Export Intensity, System GMM
JEL Classification: F23, G32, G38
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