Revista Egitania Sciencia - Volume 22 | ARTICLE


Author: Armando Silva ( * Cátia Lopes ( **
* Doutor em Economia pela Universidade do Porto. Professor Adjunto do ISCAP/IPP. Investigador do Centro de Investigação em Economia e Finanças da Universidade do Porto. ** Mestre em Finanças Empresariais pela ESEIG/Instituto Politécnico do Porto
Publication: Revista Egitania Sciencia - Volume 22

The present research aims to evaluate the relationship between the process of internationalization and the capital structure of the respective companies. Specifically, we intend to assess the adequacy of the so-called Usptream-Downstream theory that postulates that the level of indebtedness of exporting companies increases with exports to markets more stable than domestic markets and decreases when exporting to destinations that are riskier than those in the national market. In the case of Portugal, this discussion is extremely important given the sustained increase in the degree of openness of the economy. Data on 7001 exporting companies of the industrial sector was collected for the period 2007-2013; by using regressions the level of indebtedness (general, short-term and medium- and long-term) was explained by the export intensity, respectively for the European Union countries and for other markets.
The results obtained allowed the validation of the Upstream hypothesis for european community markets´exports and in the case of short term indebtedness. It was also possible to validate the hypothesis that short-term debt ratios increase in companies exporting to european community markets but only up to a certain level, then falling (with the Upstream effect taking the form of an inverted U).

Keywords: Capital Structure; Debt; Export/Internationalization; Fixed Effects Models

               INSTITUTO POLITÉCNICO DA GUARDA | Av. Dr. Francisco Sá Carneiro, 50 | 6300 - 559 Guarda | Tel.+351271220100 | Fax +351271222690