The impact of exporting on financial debt choices of SMEs
Catherine Fuss () and
Cynthia Van Hulle
Journal of Business Research, 2019, vol. 102, issue C, 56-73
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.
Keywords: SME; Financing policy; Export; Collateral; Working capital (search for similar items in EconPapers)
JEL-codes: F10 F14 F42 G3 G32 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:102:y:2019:i:c:p:56-73
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