Working capital management, financial constraints and exports: evidence from european and US manufacturers

Date

2022

Authors

Milgram Baleix, Juliette

Director

Publisher

Springer
Acceso abierto / Sarbide irekia
Artículo / Artikulua
Versión publicada / Argitaratu den bertsioa

Project identifier

  • AEI/Plan Estatal de Investigación Científica y Técnica y de Innovación 2017-2020/PID2019-104304GB-I00/ES/ recolecta
  • AEI/Plan Estatal de Investigación Científica y Técnica y de Innovación 2017-2020/PGC2018-093506-B-I00/ES/ recolecta
Impacto

Abstract

This paper investigates the effect of firms’ working capital management, measured by the cash conversion cycle (CCC) on exports, on both the intensive and extensive margins. By using Heckman’s two-stage model for the treatment of sample selection bias, we find that the longer the CCC, the lower firms’ likelihood of exporting and the lower the volume of their exports. This phenomenon is economically more relevant for financially constrained firms than for unconstrained firms. The results are robust to the propensity score matching, the transition sample and the placebo analyses. Finally, these results can be extrapolated in the context of the COVID-19 crisis because of the decline in trading conditions and firms’ shortage of liquidity.

Description

Keywords

Cash conversion cycle, COVID-19 crisis, Exports, Financial constraints, Working capital management

Department

Institute for Advanced Research in Business and Economics - INARBE

Faculty/School

Degree

Doctorate program

item.page.cita

Mansilla-Fernández, J. M., & Milgram-Baleix, J. (2022). Working capital management, financial constraints and exports: Evidence from European and US manufacturers. Empirical Economics. https://doi.org/10.1007/s00181-022-02295-5

item.page.rights

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