Export activity and risk reduction. An empirical analysis of Spanish industrial SMEs during an economic crisis
Author
Aleksic, SasaEntity
UAM. Departamento de Financiación e Investigación ComercialDate
2017-09-29Subjects
Exportaciones - España - Tesis; Riesgo (Economía) - Evaluación - España - Tesis; EconomíaNote
Tesis doctoral inédita leída en la Universidad Autónoma de Madrid, Facultad de Ciencias Económicas y Empresariales, Departamento de Financiación e Investigación Comercial. Fecha de lectura: 29-09-2017Esta obra está bajo una licencia de Creative Commons Reconocimiento-NoComercial-SinObraDerivada 4.0 Internacional.
Abstract
The current work analyses the effect of internationalization on firm performance and risk. In detail, it uses insights derived from real options theory to investigate how under the uncertain-ty caused by the financial and economic European crises, SME’s exporting infrastructure pro-vide strategic flexibility that facilitates an immediate response to downside risks, which in detail is the risk of making a loss from a specific investment. Thus, in the present work the effect of export, export diversification and operative flexibility on firm’s risk is analyzed by implementing a linear and a non-linear regression of firm performance to a measure of diver-sification and a set of control variables.
Referring to this, the analysis examines the effect by using a sample of 1.713 manufacturing Spanish firms with at least 20 employees and fewer than 250 employees. The data is received from the study, called “Encuesta Sobre Estrategias Empresariales” (ESEE) for the period be-tween 2007-2011. The Difference -In-Difference analysis and Heckman’s two-stage method is used by implamanting a non-linear regression to perform the analysis. Furthermore, a quasi experimental methodology is applied to avoid the risk definition.
The results indicate that internationalization permit to mitigate the negative effects of a signif-icant change within firm’s environment. In detail, during the period between 2007 and 2011, non-exporting SMEs experienced a higher productivity loss than exporting SMEs. Thus, the negative effect of the crisis on performance has a lower intensity on exporting firms than on domestic firms. This conclusion confirms that internationalization reduces risk, or in detail that the export activity reduces SMEs risk.
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