scholarly journals Fator País e Estrutura Dinâmica de Capital nas Empresas da América Latina

2012 ◽  
Vol 10 (2) ◽  
pp. 267 ◽  
Author(s):  
Leonel Rodrigues Bogéa Sobrinho ◽  
Hsia Hua Sheng ◽  
Mayra Ivanoff Lora
Keyword(s):  
Capital Structure ◽  
Latin American ◽  
Decision Processes ◽  
Duration Models ◽  
Publicly Traded ◽  
Partial Adjustment ◽  
Financing Decision ◽  
Structure Dynamics ◽  
America Latina ◽  
The Capital Structure

We develop partial adjustment and duration models to test the relevance of country idiosyncrasies in determining the capital structure of publicly-traded Brazilian, Chilean and Mexican firms. Our data panel, ranging from the 4th quarter of 1996 to the 2nd quarter of 2010, consists of 4403 firm-quarter observations pertaining to 139 firms. Our findings suggest that capital structure dynamics vary by country, local idiosyncrasies are key determinants of firms’ leverage among Brazilian, Chilean and Mexican firms, and that factors other than firm-specific characteristics influence the financing decision processes of Latin American managers

scholarly journals O nível de concentração de capital influencia a estrutura de capital das empresas brasileiras?

2019 ◽  
Vol 12 (4) ◽  
pp. 785
Author(s):  
Samuel De Paiva Naves Mamede ◽  
Wilson Toshiro Nakamura ◽  
José Renato De Paula Souza Jardim ◽  
Graciela Dias Coelho Jones ◽  
Elaine Aparecida Maruyama Vieira Nakamura
Keyword(s):  
Capital Structure ◽  
Concentration Level ◽  
Panel Data Analysis ◽  
Annual Data ◽  
Positive Relation ◽  
Publicly Traded ◽  
Future Studies ◽  
Publicly Traded Companies ◽  
The Capital Structure

The purpose of the present research is to identify whether the capital structure of the Brazilian listed companies is influenced by the capital concentration level. The sample comprises 104 Brazilian publicly traded companies listed on the BM&FBOVESPA, totaling 1,258 observations for annual data in the period from January 1st, 2008 to December 31st, 2014. By using panel data analysis and taking into account the control variables identified as relevant in the literature, the main results show that (i) capital concentration has a positive relation with market indebtedness and with long-term net debt to market equity; (ii) the variables size, volatility, profitability and tangibility, highlighted in the theoretical archetype, evidence a significant influence on long-term debt to market equity and book equity, and (iii) there are no findings and/or inferences that net debt to EBITDA may bring implications for shareholders´ capital concentration. For future studies, suggestions are: i) to increase observations of Brazilian privately held companies; ii) to compare the results obtained with the capital structure of other countries, and iii) to highlight and relate other variables in the literature which are not addressed by the present research.

scholarly journals IS THE CAPITAL STRUCTURE STABLE IN BRAZIL?

2019 ◽  
Vol 20 (4) ◽  
Author(s):  
PÂMELA A. TRISTÃO ◽  
IGOR B. SONZA
Keyword(s):  
Capital Structure ◽  
Statistical Significance ◽  
Graphical Analysis ◽  
Structure Stability ◽  
Publicly Traded ◽  
Publicly Traded Companies ◽  
Tax Benefits ◽  
The Stability ◽  
Second Period ◽  
The Capital Structure

ABSTRACT Purpose: This paper’s objective is to analyze whether the capital structure of Brazilian publicly traded companies remained stable over the last twenty years. Originality/value: The paper is focused on the Brazilian capital market, in which there is a lack in the literature about the study of the leverage behavior and its immaturity, where factors related to the companies and characteristics in contracting leverage alter the demand of credit. Design/methodology/approach: To achieve its objective, initially a graphical analysis of market and book debt evolution was carried out, and a GMM-Sys regression model through panel data was estimated to identify the stability of leverage along time. Findings: The results indicate a reduction of the market leverage with higher statistical significance after 2008, indicating, both in the graphic and the regression analysis, that the use of debt was unstable in the first period analyzed (1995-2007), behavior not observed during the second period (2008-2015) when analyzed market measures in which capital structure stability was prevalent, with considerable reduction of corporate leverage, otherwise, book measures of leverage would have shown a stability trend in leverage patterns. The principal determinants of the capital structure were the tax benefits (book debt) and the size (market debt), supporting trade-off theory.

scholarly journals CAPITAL STRUCTURES IN DEVELOPING COUNTRIES: THE LATIN AMERICAN CASE

2013 ◽  
Vol 71 (282) ◽  
Author(s):  
Christian Espinosa M. ◽  
Carlos Maquieira V. ◽  
João Paulo Vieito ◽  
Marcelo González A.
Keyword(s):  
Capital Structure ◽  
Latin American ◽  
The United States ◽  
Growth Opportunities ◽  
Growth Opportunity ◽  
Tangible Assets ◽  
American Case ◽  
And Performance ◽  
Latin American Countries ◽  
The Capital Structure

<p>Rajan and Zingales (1995) find that tangibility, growth opportunity, size and performance are the four common determinants for explaining capital structure across G-7 countries. In this study, we consider a sample of 590 firms from Argentina, Chile, Mexico, Peru and the United States (U.S.), to analyze whether the four common determinants also explain the capital structure in the Latin American countries. Moreover, we use a different sample of companies and a large number of years for U.S. firms and we find similar results to those reported by Rajan and Zingales (1995) more than a decade ago.</p>As expected, we report similar results for Chilean firms as the updated results for U.S. firms. The capital structure of Chilean firms is: positively related to tangible assets; negatively related to growth opportunities; positively related to size and negatively related to performance. This is not only true for book leverage but also for market leverage. The rest of Latin American countries show mixed results. In any case, we find two or three determinants to be statistically significant. However, those determinants are not the same when we use book leverage versus market leverage.

scholarly journals Market Timing and Pecking Order Theory in Latin America

2021 ◽  
Vol 13 (2) ◽  
pp. 79-104
Author(s):  
Francisco Javier Vásquez Tejos ◽  
Hernan Pape Larre
Keyword(s):  
Capital Structure ◽  
Latin American ◽  
Market Timing ◽  
Order Theory ◽  
Annual Data ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Share Prices ◽  
Definitive Evidence ◽  
The Capital Structure

This article aims to determine if the capital structure of Latin American companies in the emerging markets of Brazil, Chile, Mexico, and Peru, are managed according to the market timing theory or the pecking order theory. The analysis was based on a non-probabilistic sample of 170 companies, with annual data, from an unbalanced panel, in the period 2010-2018. Regressions were applied with the fixed and random effects method. The results do not show significant evidence indicating that Latin American companies comply with the pecking order theory. Furthermore, there is also no definitive evidence that companies benefit from low share prices to issue capital or from debt issuance in the face of high stock market prices. There are signs that they follow a blend of several theories, which would indicate their characteristics in the capital structure of Latin American companies.

scholarly journals Liquidity Risk and Capital Structure of Companies in Latin America

2021 ◽  
Vol 8 (2) ◽  
pp. 22-37
Author(s):  
Francisco Javier Vásquez Tejos ◽  
Prosper Lamothe Fernández ◽  
Hernan Pape Larre
Keyword(s):  
Latin America ◽  
Panel Data ◽  
Capital Structure ◽  
Latin American ◽  
Liquidity Risk ◽  
Risk Indices ◽  
The Relationship ◽  
The Capital Structure

Objective. To explore the relationship between liquidity risk and the capital structure of Latin American companies. Methodology. With a sample of 135 companies (Brazil, Chile and Mexico), panel data were used to analyze various models that considered, among other variables, six liquidity risk indices, two of which included a new factor: the free-float. The study period covers from 2010 to 2019. Results. The level of indebtedness and capital risk in Latin America companies present a mixed relationship (direct and inverse). Conclusions. Latin American companies have their own characteristics for decision-makingabout capital structure.

scholarly journals Bank Capital Structure Dynamics and Covid-19: Evidence from South Asia

2021 ◽  
Vol 3 (3) ◽  
Author(s):  
Khalil Ullah Mohammad ◽  
Mohsin Raza Khan
Keyword(s):  
Capital Structure ◽  
South Asia ◽  
South Asian ◽  
Economic Activity ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Bank Capital ◽  
Structure Dynamics ◽  
The Impact ◽  
The Capital Structure

The severity in terms of economic activity of the Covid-19 crisis was higher than the global financial crisis. Covid-19 has not only challenged the economic activity across the world but has put to test how the bank operates under the global crises. The objective of this paper is to identify the impact of the Covid-19 crisis on the South Asian banking sector. We investigate if South Asian banks have target leverage and how the Covid-19 crisis impacted their capital structure dynamics. To fulfill the objective, past data on all banks of South Asian countries listed in the Thomson Reuter Refinitiv were considered. The sample ended up including quarterly data of banks from India, Pakistan, Bangladesh, Sri Lanka, Bhutan Nepal and Afghanistan. Engle-Granger's two-step procedure for error correction and two-step GMM estimation was employed to measure the speed of adjustment and the impact of Covid-19 on bank capital. The study found that the capital structure determinants favor the static trade-off theory for South Asian banks. It is also observed that South Asian banks’ capital was negatively impacted by Covid-19. The analysis supports the view of leverage convergence for the capital structure. This study improves our understanding of the capital structure dynamics of banks in response to exogenous shocks in South Asia.

The capital structure dynamics of Malaysian firms: timing behavior vs adjustment toward the target

2017 ◽  
Vol 13 (3) ◽  
pp. 226-245 ◽  
Author(s):  
Islam Abdeljawad ◽  
Fauzias Mat Nor
Keyword(s):  
Capital Structure ◽  
Ownership Structure ◽  
Timing Behavior ◽  
Partial Adjustment ◽  
Content Type ◽  
Financing Decisions ◽  
Partial Adjustment Model ◽  
The Cost ◽  
Target Leverage ◽  
The Capital Structure

Purpose The purpose of this paper is to investigate how the timing behavior and the adjustment toward the target of capital structure interact with each other in the capital structure decisions. Past literature finds that both timing and targeting are significant in determining the leverage ratio which is inconsistent with any standalone framework. This study argues that the preference of the firm for timing behavior or targeting behavior depends on the cost of deviation from the target. Since the cost of deviation from the target is likely to be asymmetric between overleveraged and underleveraged firms, the direction of the deviation from the target leverage is expected to alter the preference toward timing or targeting in the capital structure decision. Design/methodology/approach This study used the GMM system estimators with the Malaysian data for the period of 1992-2009 to fit a standard partial adjustment model and to estimate the speed of adjustment (SOA) of capital structure. Findings This study finds that Malaysian firms, on average, adjust their leverage at a slow speed of 12.7 percent annually and this rate increased to 14.2 percent when the timing variable is accounted for. Moreover, the SOA is found to be significantly higher and the timing role is lower for overleveraged firms compared with underleveraged firms. Overleveraged firms seem to find less flexibility to time the market as more pressure is exerted on them to return to the target regardless the timing opportunities because of the higher costs of deviation from the target leverage. Underleveraged firms place lower priority to rebalance toward the target compared with overleveraged firms as the costs of being underleveraged are lower and hence, these firms have more flexibility to time the market. Research limitations/implications The findings of this study support that firms consider both targeting and timing in their financing decisions. No standalone theory can interpret the full spectrum of empirical results. The empirical work is based on partial adjustment model of leverage; however, this model has been criticized by inability to distinguish between active adjustment behavior and mechanical mean reversion. This is an avenue for future research. Originality/value This study investigates if targeting and timing behaviors are mutually exclusive as theoretically expected or they can coexist. A theoretical explanation and an empirical investigation support the conclusion that firms consider both targeting and timing in their financing decisions. This study provides evidence from Malaysian firms that are characterized by concentrated ownership structure and separation of cash flow rights and control rights of the firm due to pyramid ownership structure. Therefore, it provides evidence on how environmental characteristics may affect the capital structure determinants of the firm.

Sign in / Sign up

Export Citation Format

Share Document