The Impact of Financial Structure on Export Perfor-mance: The Case of Manufacturing Sectors in Turkey

Authors : Aslı Yikilmaz Erkol, Nuran Coşkun

Pages : 963-974

Doi:10.29023/alanyaakademik.687315

View : 26 | Download : 8

Publication Date : 2020-09-30

Article Type : Research

Abstract :A substantial amount of empirical research has explored the decisive role of var-ious external and internal forces on determining the sector export performance. However, there are a few studies, considering financial structure as a determi-nant of export performance. This paper aims to provide a better understanding of the relationship between a set of financial variables and export performance in Turkey’s 24 manufacturing sectors for the period between 2008 and 2016. According to the panel EGLS results, short-term debt, bank loans, size, interest expenses and return on equity have a positive effect on export intensity in con-trast to the return on asset, current asset ratio and foreign exchange rate. Conse-quently, we find substantial evidence that more short term-debt and bank loans in the capital structure lead to an increase in export performance. Further, firms with larger sizes, higher return on equity tend to present higher export performance.
Keywords : Exporting, Export performance, Financial structure, Turkey