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The Role of Exporting on Capital Structure: A Firm-Level Investigation

Year 2022, Volume: 7 Issue: 2, 316 - 333, 30.06.2022
https://doi.org/10.30784/epfad.1094372

Abstract

In this study, the effect of exports on capital structure decisions was investigated at the firm level. Annual data of 208 companies exporting in Turkey for the period 2005-2019 were used. Leverage was used as the dependent variable, and export intensity was used as the primary independent variable. In addition, asset structure, cash flow, firm size variables were added as control variables in the study. The current ratio, real effective exchange rate, and real gross domestic product variables are added to test the estimation results of the model. Panel data regression analysis was applied. According to the analysis results, a positive relationship was found between export intensity and leverage, but this relationship is statistically insignificant. A positive and statistically significant association was found between asset structure and firm size and leverage. A negative relationship was found between cash flow and leverage. There is a negative relationship between the current ratio and the leverage and there is a negative relationship between the real effective exchange rate and leverage. Additionally, gross domestic product negatively affects the leverage, but this relationship is statistically insignificant.

References

  • Abora, J.Y., Agbloyor, E.K. and Kuipo, R. (2014). Bank finance and export activities of small and medium enterprises. Review of Development Finance, 4(2), 97-103. https://doi.org/10.1016/j.rdf.2014.05.004
  • Agarwal, Y. (2013). Capital structure decisions: Evaluating risk and uncertainty. John Wiley & Sons.
  • Almeida, H. and Campello, M. (2008). Financing frictions and the substitution between internal and external funds. Journal of Financial and Quantitative Analysis, 45(3), 589-622. https://doi.org/10.1017/S0022109010000177
  • Ayob, A.H., Ramlee, S. and Rahman, A.A. (2015). Financial factors and export behavior of small and medium-sized enterprises in an emerging economy. Journal of International Entrepreneurship, 13(1), 49-66. https://doi.org/10.1007/s10843-014-0141-5
  • Ayyildiz, N. (2013). Sermaye yapısının belirleyicileri: Türkiye ve Avrupa enerji sektorü işletmeleri üzerine karşılaştırmalı bir uygulama (Yayımlanmamış doktora tezi). Niğde Üniversitesi, Sosyal Bilimler Enstitüsü, Niğde.
  • Baker, M. and Wurgler, J. (2002). Market timing and capital structure. The Journal of Finance, 57(1), 1-32. https://doi.org/10.1111/1540-6261.00414
  • Baltagi, B. (2008). Econometric analysis of panel data (3rd ed.). England: John Wiley and Sons. https://doi.org/10.1007/978-3-030-53953-5
  • Bartoli, F., Ferri, G., Murro, P. and Rotondi, Z. (2014). Bank support and export: Evidence from small Italian firms. Small Business Economics, 42(2), 245-264. https://doi.org/10.1007/s11187-013-9486-8
  • Berman, N. and Héricourt, J. (2010). Financial factors and the margins of trade: Evidence from cross-country firm-level data. Journal of Development Economics, 93(2), 206-217. https://doi.org/10.1016/j.jdeveco.2009.11.006
  • Celik, İ. (2014). Türkiye’de ihracat yapan KOBİ’lerin ortaklık ve sermaye yapılarının ihracat performansına etkisi (Yayımlanmamış doktora tezi). Galatasaray Üniversitesi, Sosyal Bilimler Enstitüsü, İstanbul.
  • Central Bank of the Republic of Turkey (2022). Electronic data delivery system [Dataset]. Retrieved from https://evds2.tcmb.gov.tr/
  • Cevheroglu-Acar, M.G. (2018). Determinants of capital structure: Empirical evidence from Turkey. Journal of Management and Sustainability, 8(1), 31-45. https://doi.org/10.5539/jms.v8n1p31
  • Chalmers, D.K., Della Porta, M. and Sensini, L. (2020). Export intensity and leverage: An empirical analysis of Spanish SMEs. International Journal of Economics and Financial Issues, 10(5), 382-386. https://doi.org/10.32479/ijefi.10071
  • Chen, C.J. and Yu, C.M.J. (2011). FDI, export, and capital structure. Management International Review, 51(3), 295-320. https://doi.org/10.1007/s11575-011-0077-0
  • Driscoll, J.C. and Kraay, A.C. (1998). Consistent covariance matrix estimation with spatially dependent panel data. Review of Economics and Statistics, 80(4), 549-560. Retrieved from https://www.jstor.org/
  • Durand, D. (1952). Costs of debt and equity funds for business: Trends and problems of measurement. In Universities-National Bureau (Eds.), Conference on research in business finance (pp. 215-262). Cambridge: National Bureau of Economic Research.
  • Elci, A.B. (2011). Türkiye'deki büyük sanayi şirketlerinde yabancı sermaye ve ihracat ilişkisi (Yayımlanmamış doktora tezi). Maltepe Üniversitesi, Sosyal Bilimler Enstitüsü, İstanbul.
  • Erkol, A.Y. and Coskun, N. (2020). The impact of financial structure on export performance: The case of manufacturing sectors in Turkey. Alanya Akademik Bakış, 4(3), 963-974. https://doi.org/10.29023/alanyaakademik.687315
  • Falls, G.A. and Natke, P.A. (2007). An empirical analysis of a Keynesian investment theory using Brazilian firm-level panel data. Journal of Post Keynesian Economics, 29(3), 501-519. doi:10.2753/PKE0160-3477290307
  • Fama, E.F. and French, K.R. (2002). Testing trade-off and pecking order predictions about dividends and debt. The Review of Financial Studies, 15(1), 1-33. Retrieved from https://www.jstor.org/
  • Gitman, L.J. and Zutter, C.J. (2015). Principles of managerial finance (14th ed.). Harlow: Pearson.
  • Goldman, E. and Viswanath, P.V. (2011). Export intensity and financial leverage of Indian firms. International Journal of Trade and Global Markets, 4(2), 152-171. Retrieved from https://www.pace.edu/
  • Graham, J.R. and Harvey, C.R. (2001). The theory and practice of corporate finance: Evidence from the field. Journal of Financial Economics, 60(2-3), 187-243. https://doi.org/10.1016/S0304-405X(01)00044-7
  • Greenaway, D., Guariglia, A. and Kneller, R. (2007). Financial factors and exporting decisions. Journal of International Economics, 73(2), 377-395. doi:10.1016/j.jinteco.2007.04.002
  • Gundogdu, Y. (2009). Türkiye’de ihracat yapan firmaların finansman yöntemleri: Bankacılık kanalı ve/veya sermaye kanalı açısından inceleme (Yayımlanmamış doktora tezi). Mersin Üniversitesi, Sosyal Bilimler Enstitüsü, Mersin.
  • Hausman, J.A. (1978). Specification tests in econometrics. Econometrica: Journal of the Econometric Society, 46(6), 1251-1271. Retrieved from https://www.jstor.org/
  • He, G., Shang, D. and Ye, M. (2013). Generalized method of moments (GMM) model for financing decision and capital structure on manufacturing 'enterprises' export capacity. International Journal of Applied Mathematics and Statistics, 47(17), 122-130. Retrieved from https://www.whu.edu.cn/
  • Jensen, M.C. and Meckling, W.H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. Retrieved from https://www.jfinec.com/
  • Kara, E. and Erdur, D.A. (2015). Determinants of capital structure: A research on sectors that contribute to exports in Turkey. Istanbul University Journal of the School of Business Administration, 44(2), 27-38. Retrieved from https://dergipark.org.tr/en/pub/iuisletme/
  • Kraus, A. and Litzenberger, R.H. (1973). A state-preference model of optimal financial leverage. Journal of Finance, 28(4), 911-922. Retrieved from https://www.jstor.org/
  • Liu, H. and Zhang, G. (2017). Research on the influence of export trade dependence on industry capital structure. In W. Strielkowski (Ed.), Advances in social science, education and humanities research (pp. 775-780). Paris: Atlantis Press.
  • Maes, E., Dewaelheyns, N., Fuss, C. and Van Hulle, C. (2016). The impact of exporting on SME capital structure and debt maturity choices (NBB Working Paper No. 311). Retrieved from https://www.econstor.eu/bitstream/10419/173767/1/wp311en.pdf
  • Miravitlles, P., Mora, T. and Achcaoucaou, F. (2018). Corporate financial structure and firm’s decision to export. Management Decision, 56(7), 1526-1540. https://doi.org/10.1108/MD-08-2017-0788
  • Modigliani, F. and Miller, M.H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261-297. Retrieved from https://www.jstor.org/
  • Modigliani, F. and Miller, M.H. (1963). Corporate income taxes and the cost of capital: A correction. The American Economic Review, 53(3), 433-443. Retrieved from https://www.jstor.org/
  • Myers, S.C. (1984). Capital structure puzzle (NBER Working Paper No. 1393). Retrieved from https://www.nber.org/system/files/working_papers/w1393/w1393.pdf
  • Myers, S.C. and Majluf, N.S. (1984). Corporate financing and investment decisions when firms have information that investors do not have (NBER Working Paper No. 1396). Retrieved from https://www.nber.org/system/files/working_papers/w1396/w1396.pdf
  • Okuyan, H.A. ve Tasci, H.M. (2010). Sermaye yapısının belirleyicileri: Türkiye'deki en büyük 1000 sanayi işletmesinde bir uygulama. Journal of BRSA Banking and Financial Markets, 4(1), 105-120. Erişim adresi: https://dergipark.org.tr/en/pub/bddkdergisi/
  • Ozturk, A. (2014). Sermaye yapısını etkileyen faktörlerin Türkiye’de imalat sanayii üzerinde araştırılması (Yayımlanmamış doktora tezi). Karadeniz Teknik Üniversitesi, Sosyal Bilimler Enstitüsü, Trabzon.
  • Pesaran, M.H. (2021). General diagnostic tests for cross-sectional dependence in panels. Empirical Economics, 60, 1-38. https://doi.org/10.1007/s00181-020-01875-7
  • Pesaran, M.H. (2007). A simple panel unit-root test in the presence of cross‐section d dependence. Journal of Applied Econometrics, 22(2), 265-312. https://doi.org/10.1007/s00181-020-01875-7
  • Pinto, J.M. and Silva, C.S. (2021). Does export intensity affect corporate leverage? Evidence from Portuguese SMEs. Finance Research Letters, 38, 101418. https://doi.org/10.1016/j.frl.2019.101418
  • Pinto, M.P.R. (2019). A comparative analysis of financing decisions in export and non-export sectors: The case of Spanish non-listed firms (Unpublished doctoral dissertation). Universidade Catolica Portuguesa, Católica Porto Business School, Portugal.
  • Ross, S.A. (1977). The determination of financial structure: The incentive signaling approach. The Bell Journal of Economics, 8(1), 23-40. Retrieved from https://www.jstor.org/
  • Silva, C.M.S. (2017). A comparative analysis of financing decisions in export and non-export sectors in Portugal (Unpublished doctoral dissertation). Universidade Catolica Portuguesa, Católica Porto Business School, Portugal.
  • Solomon, E. (1955). Measuring a company's cost of capital. The Journal of Business, 28(4), 240-252. Retrieved from https://www.jstor.org/
  • Tatoğlu, F.Y. (2018). Panel veri ekonometrisi (4. bs.). İstanbul: Beta. Yayıncılık.
  • The World Bank (2022). World development indicators [Dataset]. Retrieved from https://databank.worldbank.org/source/world-development-indicators

İhracatın Sermaye Yapısı Üzerindeki Rolü: Firma Düzeyinde Bir Araştırma

Year 2022, Volume: 7 Issue: 2, 316 - 333, 30.06.2022
https://doi.org/10.30784/epfad.1094372

Abstract

Bu çalışmada ihracatın sermaye yapısı kararlarına etkisi firma düzeyinde araştırılmıştır. Türkiye'de ihracat yapan 208 firmanın 2005-2019 dönemi yıllık verileri kullanılmıştır. Bağımlı değişken olarak kaldıraç ve ana bağımsız değişken olarak ihracat yoğunluğu kullanılmıştır. Ayrıca çalışmada kontrol değişkenleri olarak varlık yapısı, nakit akışı, firma büyüklüğü değişkenleri eklenmiştir. Modelin tahmin sonuçlarının test edilmesi için cari oran, reel efektif döviz kuru ve reel gayrisafi yurt içi hasıla değişkenleri eklenmiştir. Panel veri regresyon analizi uygulanmıştır. Analiz sonuçlarına göre ihracat yoğunluğu ile kaldıraç arasında pozitif yönlü bir ilişki bulunmuştur, fakat bu ilişki istatistiksel olarak anlamsızdır. Varlık yapısı ve firma büyüklüğü ile kaldıraç arasında pozitif yönlü ve istatistiksel olarak anlamlı bir ilişki bulunmuştur. Nakit akışı ile kaldıraç arasında ise negatif yönlü ilişki bulunmuştur. Cari oran ve reel efektif döviz kuru ile kaldıraç arasında negatif yönlü bir ilişki vardır. Ayrıca gayri safi yurt içi hasıla, kaldıracı negatif yönde etkilemektedir, fakat bu ilişki istatistiksel olarak anlamsızdır.

References

  • Abora, J.Y., Agbloyor, E.K. and Kuipo, R. (2014). Bank finance and export activities of small and medium enterprises. Review of Development Finance, 4(2), 97-103. https://doi.org/10.1016/j.rdf.2014.05.004
  • Agarwal, Y. (2013). Capital structure decisions: Evaluating risk and uncertainty. John Wiley & Sons.
  • Almeida, H. and Campello, M. (2008). Financing frictions and the substitution between internal and external funds. Journal of Financial and Quantitative Analysis, 45(3), 589-622. https://doi.org/10.1017/S0022109010000177
  • Ayob, A.H., Ramlee, S. and Rahman, A.A. (2015). Financial factors and export behavior of small and medium-sized enterprises in an emerging economy. Journal of International Entrepreneurship, 13(1), 49-66. https://doi.org/10.1007/s10843-014-0141-5
  • Ayyildiz, N. (2013). Sermaye yapısının belirleyicileri: Türkiye ve Avrupa enerji sektorü işletmeleri üzerine karşılaştırmalı bir uygulama (Yayımlanmamış doktora tezi). Niğde Üniversitesi, Sosyal Bilimler Enstitüsü, Niğde.
  • Baker, M. and Wurgler, J. (2002). Market timing and capital structure. The Journal of Finance, 57(1), 1-32. https://doi.org/10.1111/1540-6261.00414
  • Baltagi, B. (2008). Econometric analysis of panel data (3rd ed.). England: John Wiley and Sons. https://doi.org/10.1007/978-3-030-53953-5
  • Bartoli, F., Ferri, G., Murro, P. and Rotondi, Z. (2014). Bank support and export: Evidence from small Italian firms. Small Business Economics, 42(2), 245-264. https://doi.org/10.1007/s11187-013-9486-8
  • Berman, N. and Héricourt, J. (2010). Financial factors and the margins of trade: Evidence from cross-country firm-level data. Journal of Development Economics, 93(2), 206-217. https://doi.org/10.1016/j.jdeveco.2009.11.006
  • Celik, İ. (2014). Türkiye’de ihracat yapan KOBİ’lerin ortaklık ve sermaye yapılarının ihracat performansına etkisi (Yayımlanmamış doktora tezi). Galatasaray Üniversitesi, Sosyal Bilimler Enstitüsü, İstanbul.
  • Central Bank of the Republic of Turkey (2022). Electronic data delivery system [Dataset]. Retrieved from https://evds2.tcmb.gov.tr/
  • Cevheroglu-Acar, M.G. (2018). Determinants of capital structure: Empirical evidence from Turkey. Journal of Management and Sustainability, 8(1), 31-45. https://doi.org/10.5539/jms.v8n1p31
  • Chalmers, D.K., Della Porta, M. and Sensini, L. (2020). Export intensity and leverage: An empirical analysis of Spanish SMEs. International Journal of Economics and Financial Issues, 10(5), 382-386. https://doi.org/10.32479/ijefi.10071
  • Chen, C.J. and Yu, C.M.J. (2011). FDI, export, and capital structure. Management International Review, 51(3), 295-320. https://doi.org/10.1007/s11575-011-0077-0
  • Driscoll, J.C. and Kraay, A.C. (1998). Consistent covariance matrix estimation with spatially dependent panel data. Review of Economics and Statistics, 80(4), 549-560. Retrieved from https://www.jstor.org/
  • Durand, D. (1952). Costs of debt and equity funds for business: Trends and problems of measurement. In Universities-National Bureau (Eds.), Conference on research in business finance (pp. 215-262). Cambridge: National Bureau of Economic Research.
  • Elci, A.B. (2011). Türkiye'deki büyük sanayi şirketlerinde yabancı sermaye ve ihracat ilişkisi (Yayımlanmamış doktora tezi). Maltepe Üniversitesi, Sosyal Bilimler Enstitüsü, İstanbul.
  • Erkol, A.Y. and Coskun, N. (2020). The impact of financial structure on export performance: The case of manufacturing sectors in Turkey. Alanya Akademik Bakış, 4(3), 963-974. https://doi.org/10.29023/alanyaakademik.687315
  • Falls, G.A. and Natke, P.A. (2007). An empirical analysis of a Keynesian investment theory using Brazilian firm-level panel data. Journal of Post Keynesian Economics, 29(3), 501-519. doi:10.2753/PKE0160-3477290307
  • Fama, E.F. and French, K.R. (2002). Testing trade-off and pecking order predictions about dividends and debt. The Review of Financial Studies, 15(1), 1-33. Retrieved from https://www.jstor.org/
  • Gitman, L.J. and Zutter, C.J. (2015). Principles of managerial finance (14th ed.). Harlow: Pearson.
  • Goldman, E. and Viswanath, P.V. (2011). Export intensity and financial leverage of Indian firms. International Journal of Trade and Global Markets, 4(2), 152-171. Retrieved from https://www.pace.edu/
  • Graham, J.R. and Harvey, C.R. (2001). The theory and practice of corporate finance: Evidence from the field. Journal of Financial Economics, 60(2-3), 187-243. https://doi.org/10.1016/S0304-405X(01)00044-7
  • Greenaway, D., Guariglia, A. and Kneller, R. (2007). Financial factors and exporting decisions. Journal of International Economics, 73(2), 377-395. doi:10.1016/j.jinteco.2007.04.002
  • Gundogdu, Y. (2009). Türkiye’de ihracat yapan firmaların finansman yöntemleri: Bankacılık kanalı ve/veya sermaye kanalı açısından inceleme (Yayımlanmamış doktora tezi). Mersin Üniversitesi, Sosyal Bilimler Enstitüsü, Mersin.
  • Hausman, J.A. (1978). Specification tests in econometrics. Econometrica: Journal of the Econometric Society, 46(6), 1251-1271. Retrieved from https://www.jstor.org/
  • He, G., Shang, D. and Ye, M. (2013). Generalized method of moments (GMM) model for financing decision and capital structure on manufacturing 'enterprises' export capacity. International Journal of Applied Mathematics and Statistics, 47(17), 122-130. Retrieved from https://www.whu.edu.cn/
  • Jensen, M.C. and Meckling, W.H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. Retrieved from https://www.jfinec.com/
  • Kara, E. and Erdur, D.A. (2015). Determinants of capital structure: A research on sectors that contribute to exports in Turkey. Istanbul University Journal of the School of Business Administration, 44(2), 27-38. Retrieved from https://dergipark.org.tr/en/pub/iuisletme/
  • Kraus, A. and Litzenberger, R.H. (1973). A state-preference model of optimal financial leverage. Journal of Finance, 28(4), 911-922. Retrieved from https://www.jstor.org/
  • Liu, H. and Zhang, G. (2017). Research on the influence of export trade dependence on industry capital structure. In W. Strielkowski (Ed.), Advances in social science, education and humanities research (pp. 775-780). Paris: Atlantis Press.
  • Maes, E., Dewaelheyns, N., Fuss, C. and Van Hulle, C. (2016). The impact of exporting on SME capital structure and debt maturity choices (NBB Working Paper No. 311). Retrieved from https://www.econstor.eu/bitstream/10419/173767/1/wp311en.pdf
  • Miravitlles, P., Mora, T. and Achcaoucaou, F. (2018). Corporate financial structure and firm’s decision to export. Management Decision, 56(7), 1526-1540. https://doi.org/10.1108/MD-08-2017-0788
  • Modigliani, F. and Miller, M.H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261-297. Retrieved from https://www.jstor.org/
  • Modigliani, F. and Miller, M.H. (1963). Corporate income taxes and the cost of capital: A correction. The American Economic Review, 53(3), 433-443. Retrieved from https://www.jstor.org/
  • Myers, S.C. (1984). Capital structure puzzle (NBER Working Paper No. 1393). Retrieved from https://www.nber.org/system/files/working_papers/w1393/w1393.pdf
  • Myers, S.C. and Majluf, N.S. (1984). Corporate financing and investment decisions when firms have information that investors do not have (NBER Working Paper No. 1396). Retrieved from https://www.nber.org/system/files/working_papers/w1396/w1396.pdf
  • Okuyan, H.A. ve Tasci, H.M. (2010). Sermaye yapısının belirleyicileri: Türkiye'deki en büyük 1000 sanayi işletmesinde bir uygulama. Journal of BRSA Banking and Financial Markets, 4(1), 105-120. Erişim adresi: https://dergipark.org.tr/en/pub/bddkdergisi/
  • Ozturk, A. (2014). Sermaye yapısını etkileyen faktörlerin Türkiye’de imalat sanayii üzerinde araştırılması (Yayımlanmamış doktora tezi). Karadeniz Teknik Üniversitesi, Sosyal Bilimler Enstitüsü, Trabzon.
  • Pesaran, M.H. (2021). General diagnostic tests for cross-sectional dependence in panels. Empirical Economics, 60, 1-38. https://doi.org/10.1007/s00181-020-01875-7
  • Pesaran, M.H. (2007). A simple panel unit-root test in the presence of cross‐section d dependence. Journal of Applied Econometrics, 22(2), 265-312. https://doi.org/10.1007/s00181-020-01875-7
  • Pinto, J.M. and Silva, C.S. (2021). Does export intensity affect corporate leverage? Evidence from Portuguese SMEs. Finance Research Letters, 38, 101418. https://doi.org/10.1016/j.frl.2019.101418
  • Pinto, M.P.R. (2019). A comparative analysis of financing decisions in export and non-export sectors: The case of Spanish non-listed firms (Unpublished doctoral dissertation). Universidade Catolica Portuguesa, Católica Porto Business School, Portugal.
  • Ross, S.A. (1977). The determination of financial structure: The incentive signaling approach. The Bell Journal of Economics, 8(1), 23-40. Retrieved from https://www.jstor.org/
  • Silva, C.M.S. (2017). A comparative analysis of financing decisions in export and non-export sectors in Portugal (Unpublished doctoral dissertation). Universidade Catolica Portuguesa, Católica Porto Business School, Portugal.
  • Solomon, E. (1955). Measuring a company's cost of capital. The Journal of Business, 28(4), 240-252. Retrieved from https://www.jstor.org/
  • Tatoğlu, F.Y. (2018). Panel veri ekonometrisi (4. bs.). İstanbul: Beta. Yayıncılık.
  • The World Bank (2022). World development indicators [Dataset]. Retrieved from https://databank.worldbank.org/source/world-development-indicators
There are 48 citations in total.

Details

Primary Language English
Subjects Finance
Journal Section Makaleler
Authors

Ersin İnal 0000-0003-3303-7929

Bahadır Ergün 0000-0002-0844-412X

Publication Date June 30, 2022
Acceptance Date June 30, 2022
Published in Issue Year 2022 Volume: 7 Issue: 2

Cite

APA İnal, E., & Ergün, B. (2022). The Role of Exporting on Capital Structure: A Firm-Level Investigation. Ekonomi Politika Ve Finans Araştırmaları Dergisi, 7(2), 316-333. https://doi.org/10.30784/epfad.1094372