Impact of political instability on firm-level export decisions

Kapri, Kul

doi:10.1016/j.iref.2018.08.008

Cited by 28 publications

(19 citation statements)

References 11 publications

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“…political instability, corruption) created an "institutional misalignment" between the needs of firms and the institutional framework, which could motivate firms to turn to foreign markets and seek export opportunities (Hiatt and Sine, 2014;Lee and Weng, 2013). Furthermore, Kapri (2019) found that smaller firms that could not manage additional costs were severely affected by political instability. Some of these businesses would disappear, whereas those that were most productive would seek a larger market share and be more likely to export.…”

Section: Export Intensity Of Smes In Tunisiamentioning

confidence: 99%

The impact of corruption on the export intensity of SMEs in Tunisia: moderating effects of political instability and regulatory obstacles

Bahri

Sakka

Kallal³

2020

JEEE

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Purpose This paper aims to investigate the moderating effect of political instability and regulatory obstacles on the relationship between corruption and export intensity in the context of Tunisian small- and medium-sized enterprises (SMEs). Design/methodology/approach This study uses data from the World Bank Enterprise Survey (WBES). The sample consists of 537 Tunisian SMEs. The partial least squares method was used to analyse the data. Findings The direct effect of corruption on export intensity was found to be non-significant. It was significantly negative when corruption was combined with regulatory obstacles, whereas it was positive when corruption coexisted with political instability. Additional analyses revealed that results were sensitive to firm size (small versus medium) and sector of activity (service versus manufacturing). Research limitations/implications This paper has some limitations related to the use of secondary data. Enhanced variable measurements and more detailed data collection are recommended for future studies. Practical implications This paper is useful to researchers and policymakers who are interested in understanding the effects of a poor institutional environment on SME exports in developing countries. Originality/value This paper considers the impact of corruption on the export intensity of SMEs in the presence of political instability and regulatory obstacles in Tunisia. To the best of the authors’ knowledge, the joint effect of these institutional variables on the exports of firms has not been examined in previous research.

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Section: Export Intensity Of Smes In Tunisiamentioning

confidence: 99%

The impact of corruption on the export intensity of SMEs in Tunisia: moderating effects of political instability and regulatory obstacles

Bahri

Sakka

Kallal³

2020

JEEE

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“…The average score is computed after excluding the firm itself. Similar reasoning is used to Kapri (2019) to find an instrument for political uncertainty. His definition of political uncertainty is similar to ours as he also uses the same dataset.…”

Section: Effect Of Political Uncertainty On the Choice Of External Audit: Alternate Estimation Proceduresmentioning

confidence: 99%

Political uncertainty and the choice of external audit: international evidence from private firms

Farooq

Satt

Fadel

2020

IJMF

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PurposeThis paper documents the impact of political uncertainty on the decision of private firms to use external auditors to verify their financial statements.Design/methodology/approachThe authors use the data from 141 countries and the pooled logistic regression to test our arguments. The data is provided by the World Bank's Enterprise Surveys and is collected during the period between 2006 and 2019.FindingsThe results show that firms with high exposure to political uncertainty are more likely to use external auditors to verify their financial statements. The results are robust across various sub-samples and hold when we use alternate proxy for political uncertainty. The results are also robust after controlling for potential endogeneity concerns. The authors also find that the effect of political uncertainty on the choice of external audit is more pronounced for firms that are headquartered in countries with weak institutional environment. The authors document significant role of democracy, rule of law and accountability in determining the relationship between political uncertainty and the choice of external audit.Originality/valueThe authors believe that theirs is one of the initial attempts (if not the first) to investigate the effect of political uncertainty on the choice of external audit among the private firms in developing countries.

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“…Ayrıca ihracat kararının; planlama ve doğaçlama (Nemkova vd., 2012); pazarlar konusunda bilgi kaynakları (He ve Wei, 2013;Inui vd., 2015); standartlar ve teknik düzenlemeler Chen vd., 2008); yığılma (Koenig, 2009); ağ faaliyetleri (Tomiura, 2007); insan sermayesi (Gashi, 2014); politik istikrarsızlık (Kapri, 2018), kurlarda belirsizlik (Greenaway vd., 2010;Wong, 2016) ile ilişkisini araştıran çalışmalar bulunmaktadır.…”

Section: İhracat Kararıunclassified

Girişimci ve İhracat Kararı: İhracat Yapan ve Yapmayan İşletmelerde Karşılaştırmalı Bir Araştırma

YELLİCE¹

2020

TurkishStudies

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Plenty of research indicates that differences between exporting and non-exporting companies exist according to entrepreneur's traits. Revealing which traits of the entrepreneurs differ from each other, contributes to design and implement appropriate intervention tools to increase the export rate of an industry or a region. The aim of this study is to investigate the effects of the entrepreneur's personality traits on export decision. With this aim, differences between exporting and non-exporting companies, on entrepreneur's personality traits and variables representing perception on exporting are investigated. According to exporting status; mean ranks for two groups differ significantly from each other in three variables among six variables representing personality traits of the entrepreneur; and two variables among five variables representing perception on exporting. Compared to owners of the non-exporting companies, owners of the exporting-companies seem to have higher scoring for visiting abroad frequently, attending to fairs and taking risk. Compared to exporting-companies, non-exporting companies have higher scores for expressing that exporting requires big capital and big company scale. The relationship between export rate and entrepreneur's personality traits are investigated, and very weak positive relations are detected, in the study. Besides, relationship between entrepreneur's personality traits; and reasons of exporting, reasons for not-exporting and variables representing perception on exporting are investigated. The study includes a field research applied to 246 firms operating in textile industry in Bursa. Data set is analyzed with One-Sample Kolmogorov-Smirnov test, Mann-Whitney U test and Spearman's correlation.

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Impact of political instability on firm-level export decisions

Cited by 28 publications

References 11 publications

The impact of corruption on the export intensity of SMEs in Tunisia: moderating effects of political instability and regulatory obstacles

The impact of corruption on the export intensity of SMEs in Tunisia: moderating effects of political instability and regulatory obstacles

Political uncertainty and the choice of external audit: international evidence from private firms

Girişimci ve İhracat Kararı: İhracat Yapan ve Yapmayan İşletmelerde Karşılaştırmalı Bir Araştırma

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