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Export Intensity and Leverage: An Empirical Analysis of Spanish SMEs

Author

Listed:
  • David K. Chalmers

    (School of Strategy and Business, UT Toronto, Canada,)

  • Marco Della Porta

    (BeLab, Business Economics Laboratory, Barcelona, Spain,)

  • Luca Sensini

    (Department of Management and Innovation Systems, University of Salerno, Italy.)

Abstract

The aim of this study was to contribute to the literature debate on financial behavior and corporate capital structure by focusing on two aspects. First of all, we analyzed how the intensity of exports and therefore the percentage weight of foreign sales compared to total sales affect the leverage of companies. Secondly, we have analyzed which are the most significant factors influencing the financial behavior of SMEs. The financial information for the analysis were collected from the Sabi database of Bureau Van Dijk (BVD). To select the companies to be included in the sample, we followed a methodology capable of ensuring that the sample of export oriented and non-export oriented companies was adequately represented. The overall sample size was 2000 companies. The analysis showed that export intensity has a negative and significant impact on leverage, suggesting that as exports increase, leverage decreases. In addition, profitability and business risk are negatively related to leverage, while the tangibility of the assets and growth correlates positively with leverage.

Suggested Citation

  • David K. Chalmers & Marco Della Porta & Luca Sensini, 2020. "Export Intensity and Leverage: An Empirical Analysis of Spanish SMEs," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 382-386.
    • Handle: RePEc:eco:journ1:2020-05-42
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    3. Jean Vasile Andrei & Luminita Chivu & Ileana Georgiana Gheorghe & Aleksandar Grubor & Teodor Sedlarski & Violeta Sima & Jonel Subić & Mile Vasic, 2021. "Small and Medium-Sized Enterprises, Business Demography and European Socio-Economic Model: Does the Paradigm Really Converge?," JRFM, MDPI, vol. 14(2), pages 1-29, February.
    4. Andreas Mueller & Luca Sensini, 2023. "Determinants of Financing Decisions of SMEs: Evidence from Hotel Industry," International Journal of Business and Management, Canadian Center of Science and Education, vol. 16(3), pages 117-117, April.

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    More about this item

    Keywords

    Export intensity; Leverage; profitability; Spanish SMEs;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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