The impact of financial factors on export decisions: The evidence from Turkey

•We test the validity of financial constraint hypothesis by applying panel logit model.•The findings reject the validity of financial constraint hypothesis.•The hypotheses have not been tested before in Turkey.

The paper tests the validity of the financial constraint hypothesis in Turkey. In this context, we apply a panel logit model by using the dataset of firms whose stocks are traded in Istanbul Stock Exchange (ISE) for the period 2000-2011. As a result of analysis, we find that the financial constraint hypothesis is not valid in Turkey. The findings are crucial for firms in Turkey since the hypothesis has not been tested before for Turkey.