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Journal of Banking & Finance Vol. 87 2018

Export market exit and financial health in crises periods

Holger Görg1; Marina-Eliza Spaliara2,3

1 Kiel Institute for the World Economy · 2 University of Glasgow · 3 Adam Smith Institute

open access

Abstract

This paper uses rich firm-level data for the UK to investigate the link between firms’ financial health and export exit, paying attention to the ERM currency crisis and the global financial crisis. Our results show that deterioration in the financial position of firms has increased the hazard of export exit during the 2007–09 crisis but has no significant effect on the early 1990s crisis. We also explore the extent to which firms in financially vulnerable industries face greater sensitivity of export exit to financial conditions. We conclude that firms in sectors with great reliance on external finance experience higher hazards of exiting the export market during the 2007–09 crisis.

DOI
10.1016/j.jbankfin.2017.08.004
Volume
87
Pages
150-163
Language
en
Sources
openalex crossref bibtex:phds-export.bib

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