ABSTRACT
This study attempts to analyse the impact of leverage and corporate governance on export intensity of manufacturing firms quoted on Pakistan stock exchange for period 2013–2019. The results of a two-step system GMM method show that leverage has a negative relationship to export intensity. We find evidence that a firm’s age negatively impacts the export sales to total sales ratio, while profitability has a positive connection with it. Finally, we note that board size exhibits a negative relationship with export intensity. These findings suggest important policy implications for export promotion, specifically for a small-open economy.
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Disclosure statement
No potential conflict of interest was reported by the author(s).
Notes
1 PSX database provides the audited financial statements which comprises profit and loss information, balance sheet data, cash-flow statement, and their footnote details including corporate governance and export sales information. We also use the EMIS database for collecting the financial information, for instance sales and total assets.
2 For brevity purpose, we do not report the results of robustness checks and can be provided on request. Our results remain consistent under different specifications.