The impact of international diversification on credit scores: Evidence from the UK

Ahmad Alshehabi; Godfred Afrifa; H. Halabi; G. Wood; Z. Khan

doi:10.1016/j.ibusrev.2021.101856

The impact of international diversification on credit scores: Evidence from the UK

Ahmad Alshehabi
, Godfred Afrifa
, H. Halabi
, G. Wood
, Z. Khan

Research output: Contribution to journal › Article › peer-review

Abstract

This study investigates the impact of international diversification on credit scores using a large sample of 6,557 UK firms. Our findings suggest that international diversification has an inverted U-shaped relationship with credit scores, and R&D intensity positively moderates this relationship. The results also show the international diversification-credit score relationship is only significant for firms operating in competitive industries. Further, we find the impact of international diversification on a firm’s credit score is not only dependent on innovation and competition, but also on its age of maturity, size, the industry to which it belongs, and its geographical location.

Original language	English
Pages (from-to)	101856
Journal	International Business Review
Volume	30
Issue number	6
DOIs	https://doi.org/10.1016/j.ibusrev.2021.101856
Publication status	Published - 30 Apr 2021

Keywords

Competition
Credit scores
Exporting firms
Innovation
International diversification
SMEs

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title = "The impact of international diversification on credit scores: Evidence from the UK",

abstract = "This study investigates the impact of international diversification on credit scores using a large sample of 6,557 UK firms. Our findings suggest that international diversification has an inverted U-shaped relationship with credit scores, and R\&D intensity positively moderates this relationship. The results also show the international diversification-credit score relationship is only significant for firms operating in competitive industries. Further, we find the impact of international diversification on a firm{\textquoteright}s credit score is not only dependent on innovation and competition, but also on its age of maturity, size, the industry to which it belongs, and its geographical location.",

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AU - Halabi, H.

AU - Wood, G.

AU - Khan, Z.

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N2 - This study investigates the impact of international diversification on credit scores using a large sample of 6,557 UK firms. Our findings suggest that international diversification has an inverted U-shaped relationship with credit scores, and R&D intensity positively moderates this relationship. The results also show the international diversification-credit score relationship is only significant for firms operating in competitive industries. Further, we find the impact of international diversification on a firm’s credit score is not only dependent on innovation and competition, but also on its age of maturity, size, the industry to which it belongs, and its geographical location.

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KW - SMEs

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The impact of international diversification on credit scores: Evidence from the UK

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Keywords

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