Does Export Intensity Affect Corporate Leverage? Evidence from Portuguese SMEs

19 Pages Posted: 18 Apr 2019 Last revised: 29 Jan 2020

See all articles by Cátia Silva

Cátia Silva

affiliation not provided to SSRN

João Pinto

Universidade Católica Portuguesa, Católica Porto Business School and CEGE

Date Written: August 10, 2019

Abstract

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

Suggested Citation

Silva, Cátia and Pinto, João M., Does Export Intensity Affect Corporate Leverage? Evidence from Portuguese SMEs (August 10, 2019). Finance Research Letters, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3357050 or http://dx.doi.org/10.2139/ssrn.3357050

Cátia Silva

affiliation not provided to SSRN

João M. Pinto (Contact Author)

Universidade Católica Portuguesa, Católica Porto Business School and CEGE ( email )

Rua Diogo de Botelho, 1327
Porto, 4169-005
Portugal
+351 22 619 62 00 (Phone)

HOME PAGE: http://www.porto.ucp.pt/

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
13
Abstract Views
168
PlumX Metrics