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Export volatility and corporate financing decisions in Australia: a dynamic panel data approach


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).


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.

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Additional Metadata

Item Type: Conference or Workshop Item (Paper)
Divisions: Faculty of Economics and Management
Putra Business School
Publisher: Faculty of Economics and Management, Universiti Putra Malaysia
Keywords: Corporate financing decisions; Capital structure; Leverage; Export volatility; System GMM; GARCH
Depositing User: Nabilah Mustapa
Date Deposited: 29 Jan 2018 09:52
Last Modified: 29 Jan 2018 09:52
URI: http://psasir.upm.edu.my/id/eprint/58700
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