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Does export intensity of heterogeneous firms affect leverage? Evidence from a small open economy.
- Source :
- Economics & Business Letters; Dec2023, Vol. 12 Issue 4, p356-365, 10p
- Publication Year :
- 2023
-
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. Finally, 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 economy. The results are robust to different sensitivity checks. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 22544380
- Volume :
- 12
- Issue :
- 4
- Database :
- Complementary Index
- Journal :
- Economics & Business Letters
- Publication Type :
- Academic Journal
- Accession number :
- 174775887
- Full Text :
- https://doi.org/10.17811/ebl.12.4.2023.356-365