Export volatility and corporate financing decisions in Australia: a dynamic panel data approach
This paper investigates the influence of export volatility on corporate financing decisions of a sample of non-financial firms listed on the Australian Securities Exchange over the period 2004-2014. The GARCH model is employed to model export volatility. Using a dynamic panel data method, namely the...
| Main Authors: | , , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
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Faculty of Economics and Management, Universiti Putra Malaysia
2017
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| Online Access: | http://psasir.upm.edu.my/id/eprint/58700/1/6-YEE_PENG_CHOW.pdf.pdf |
| _version_ | 1825931861446098944 |
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| author | Chow, Yee Peng Muhammad, Junaina Amin Noordin, Bany Ariffin Cheng, Fan Fah |
| author_facet | Chow, Yee Peng Muhammad, Junaina Amin Noordin, Bany Ariffin Cheng, Fan Fah |
| author_sort | Chow, Yee Peng |
| collection | UPM |
| description | This paper investigates the influence of export volatility on corporate financing decisions of a sample of non-financial firms listed on the Australian Securities Exchange over the period 2004-2014. The GARCH model is employed to model export volatility. Using a dynamic panel data method, namely the robust two-step system GMM estimation procedure, the results show that export volatility has a significant negative effect on the financing decisions of Australian firms. The results also reveal that while long-term debt is affected by export volatility, similar observation does not hold for short-term debt. This indicates that Australian firms are chiefly concerned about the adverse effect of export volatility in the long-run. The results also provide evidence of the importance of accounting for the effects of the Global Financial Crisis. Policy implications are derived from the findings. |
| first_indexed | 2024-03-06T09:33:09Z |
| format | Conference or Workshop Item |
| id | upm.eprints-58700 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T09:33:09Z |
| publishDate | 2017 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| record_format | dspace |
| spelling | upm.eprints-587002018-01-29T09:52:17Z http://psasir.upm.edu.my/id/eprint/58700/ Export volatility and corporate financing decisions in Australia: a dynamic panel data approach Chow, Yee Peng Muhammad, Junaina Amin Noordin, Bany Ariffin Cheng, Fan Fah This paper investigates the influence of export volatility on corporate financing decisions of a sample of non-financial firms listed on the Australian Securities Exchange over the period 2004-2014. The GARCH model is employed to model export volatility. Using a dynamic panel data method, namely the robust two-step system GMM estimation procedure, the results show that export volatility has a significant negative effect on the financing decisions of Australian firms. The results also reveal that while long-term debt is affected by export volatility, similar observation does not hold for short-term debt. This indicates that Australian firms are chiefly concerned about the adverse effect of export volatility in the long-run. The results also provide evidence of the importance of accounting for the effects of the Global Financial Crisis. Policy implications are derived from the findings. Faculty of Economics and Management, Universiti Putra Malaysia 2017 Conference or Workshop Item PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/58700/1/6-YEE_PENG_CHOW.pdf.pdf Chow, Yee Peng and Muhammad, Junaina and Amin Noordin, Bany Ariffin and Cheng, Fan Fah (2017) Export volatility and corporate financing decisions in Australia: a dynamic panel data approach. In: Global Conference on Business and Economics Research (GCBER) 2017, 14-15 Aug. 2017, Universiti Putra Malaysia, Serdang, Selangor. (pp. 93-100). http://www.econ.upm.edu.my/upload/dokumen/20170816174249013-YEE_PENG_CHOW.pdf.pdf |
| spellingShingle | Chow, Yee Peng Muhammad, Junaina Amin Noordin, Bany Ariffin Cheng, Fan Fah Export volatility and corporate financing decisions in Australia: a dynamic panel data approach |
| title | Export volatility and corporate financing decisions in Australia: a dynamic panel data approach |
| title_full | Export volatility and corporate financing decisions in Australia: a dynamic panel data approach |
| title_fullStr | Export volatility and corporate financing decisions in Australia: a dynamic panel data approach |
| title_full_unstemmed | Export volatility and corporate financing decisions in Australia: a dynamic panel data approach |
| title_short | Export volatility and corporate financing decisions in Australia: a dynamic panel data approach |
| title_sort | export volatility and corporate financing decisions in australia a dynamic panel data approach |
| url | http://psasir.upm.edu.my/id/eprint/58700/1/6-YEE_PENG_CHOW.pdf.pdf |
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