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The impact of exporting on financial debt choices of SMEs

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  • Maes, Elisabeth
  • Dewaelheyns, Nico
  • Fuss, Catherine
  • Van Hulle, Cynthia

Abstract

Using detailed financial and exporting data from Belgian small and medium-sized enterprises (SMEs) between 1998 and 2013, we find that exporters have to finance relatively more working capital than their nonexporting peers and that they resolve this financing need by carrying more short-term financial debt. In addition, while controlling for working capital needs, we find that the positive association between pledgeable short-term assets and short-term debt financing is more pronounced for exporters. In particular, we show that the linkage between pledgeable short-term assets and short-term debt financing is stronger for export-intensive firms and firms that serve distant and risky export destinations.

Suggested Citation

  • Maes, Elisabeth & Dewaelheyns, Nico & Fuss, Catherine & Van Hulle, Cynthia, 2019. "The impact of exporting on financial debt choices of SMEs," Journal of Business Research, Elsevier, vol. 102(C), pages 56-73.
    • Handle: RePEc:eee:jbrese:v:102:y:2019:i:c:p:56-73
    DOI: 10.1016/j.jbusres.2019.05.008
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    More about this item

    Keywords

    SME; Financing policy; Export; Collateral; Working capital;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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