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Analyzing the Impact of Leverage Rate on Export Survival: The Case of Iranian Firms

Author

Listed:
  • Mojdeh , Zahra

    (Department of Economics, Mazandaran University)

  • Tehranchian , Amir Mansour

    (Department of Economics, Mazandaran University)

  • Jafari Samimi , Ahmad

    (Department of Economics, Mazandaran University)

  • Rasekhi , Saeed

    (Department of Economics, Mazandaran University)

Abstract

One of the goals of the government is to increase the competitiveness of domestic firms to export goods and services. Moreover, the role of exports in many economic sectors has been emphasized. There are two essential requirements for developing non-oil exports: first, the presence of firms in export markets and increasing their competitiveness; second, the survival of them in international markets. This paper assesses the impact of leverage on export survival by using the data of 16 Iranian manufacturing firms from 1999-2018. These companies operate in the agricultural and food industry and are indexed in the stock exchange market. Based on Cox semi-parametric model estimation, the main result is that leverage harms export survival.

Suggested Citation

  • Mojdeh , Zahra & Tehranchian , Amir Mansour & Jafari Samimi , Ahmad & Rasekhi , Saeed, 2020. "Analyzing the Impact of Leverage Rate on Export Survival: The Case of Iranian Firms," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 15(1), pages 25-34, January.
    • Handle: RePEc:mbr:jmonec:v:15:y:2020:i:1:p:25-34
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    More about this item

    Keywords

    Export survival; Leverage; Firm Heterogeneity; Cox Semi-Parametric Model;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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