The impact of internationalisation through export growth on debt financing in construction firms: Evidence from the Americas

Objective: This study investigates the impact of internationalisation on the indebtedness of construction companies in the Americas. We measured internationalisation as the share of exports in total revenues, reflecting a firm’s engagement in cross-border sales. Research Design & Methods: The analysis utilised panel data from 132 construction firms across 13 American countries. We employed fixed and random effects models. Findings: International firms show distinct debt financing patterns, with firm size positively influencing debt levels, especially in long-term debt. Internationalisation moderates the impact of firm-specific factors on capital structure. For international firms, asset tangibility positively affects long-term debt, contrasting with domestic firms, where this relationship is negative. Country-specific factors have a stronger impact on the capital structure of international firms than on domestic firms. Implications & Recommendations: As both the country context and the degree of internationalisation influence financing decisions, firms pursuing international expansion must adapt their financing strategies accordingly. Contribution & Value Added: This research uniquely investigates how internationalisation moderates the relationship between firm- and country-specific factors and the indebtedness of construction companies in the Americas – a sector and regional context that previous studies largely overlooked.