Does export intensity of heterogeneous firms affect leverage? Evidence from a small open economy

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Date

2023

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Univ Oviedo

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Abstract

Exports at firm level improve the financial performance and contribute to economic growth. Exporting activities can require additional financing and pose a challenge to manufacturing firms, affecting their managerial financing decisions. This study explores the impact of export intensity on leverage using a dataset of manufacturing firms. The results of two-step system GMM reveal that export intensity has a negative influence on leverage. We find that a firm size positively impacts leverage, while cash holding has a negative connection with leverage. Fi-nally, we note that board size exhibits a positive relationship with leverage. These findings suggest important policy implications for export promotion, specifically for a small open econ-omy. The results are robust to different sensitivity checks.

Description

Ramzan, Imran/0000-0003-0012-1657

Keywords

Leverage, Export intensity, Financial policy, GMM

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0

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N/A

Scopus Q

Q3

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Volume

12

Issue

4

Start Page

356

End Page

365