CAPITAL STRUCTURE OF EXPORTER SMEs DURING THE FINANCIAL CRISIS: EVIDENCE FROM PORTUGAL

Inês Lisboa
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Inês Lisboa: ESTG- School of Technology and Management, Polytechnic Insititute of Leiria, Portugal

Portuguese Journal of Management Studies, 2017, vol. 22, issue 1, 25-49

Abstract: This study aims to identify the most important determinants to explain the capital structure of exporter SMEs during the financial crisis. Capital structure is measured using three alternative ratios: total debt, long-term debt, and short-term debt, as the impact of the determinants can depend on debt maturity. Analysing an unbalanced sample of 277 Portuguese exporter SMEs, from 2008 until 2014, and using a panel data methodology, estimating the models with fixed effects for firms, the results suggest that size, profitability, asset structure, non-debt tax shields, growth, liquidity, and age are important determinants for explaining firms’ capital structure. Furthermore, exports intensity and crisis effect do not impact a firm’s indebtedness. Findings are consistent with the hierarchy of funds proposed by the Pecking Order Theory. The Trade-off Theory is also important, as fixed asset can be used as collateral in the case of a firm’s bankruptcy. Additionally, results suggest that exporter SMEs hold more short-term than long-term debt, especially small-sized firms. Finally, companies’ debt ratio presents a constant tendency during the period analysed. Classification- JEL:

Keywords: Exporters; Capital Structure; Debt; SME; Panel Data; Financial Crisis. (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (4)

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