Does export intensity affect corporate leverage? Evidence from Portuguese SMEs

This paper examines the effect of export intensity on a firm's capital structure using sample 7,676 Portuguese SMEs. Results obtained from system GMM estimation method show that leverage ratio is negatively affected by intensity. We document firms with more growth opportunities have higher leverage, while profits, asset tangibility and face business risk lower debt ratios. Our results also implementation governmental mechanisms support firms’ borrowing activities are critical in economies facing financial crisis.