Determinants of the capital structure of publicly-traded companies in Brazil, Mexico and Chile in the period 2001-2006

Authors

  • Douglas Dias Bastos Universidade Presbiteriana Mackenzie; Centro de Ciências Sociais
  • Wilson Toshiro Nakamura Universidade Presbiteriana Mackenzie; Centro de Ciências Sociais; Núcleo Permanente do Programa de Pós-Graduação em Administração de Empresas

DOI:

https://doi.org/10.1590/S1519-70772009000200006

Keywords:

Capital structure, Panel data, Latin America

Abstract

The present study investigates the determinants of the capital structure, using the technique of static panel data, for a sample of 297 companies from several sectors in Brazil, Mexico and Chile, between 2001 and 2006, in order to determine the relative importance of the specific factors of the firm. Starting from six indicators of leverage ratio (total book-debt ratio, short-term and long-term book-debt ratio, total market-debt ratio and short-term and long-term financial-debt ratio), it was evidenced that the specific factors of the firm: current liquidity, profitability, market to book value and size presented the most significant results for the capital structure of the companies from the three countries. Among the four theoretical currents analyzed (Trade off, Asymmetry of information, Pecking order and Agency), the theory of Pecking order seems to be the one that best explains the results obtained for Brazil and Mexico. For Chile, besides the Pecking order, the theory of Trade off strongly influences the capital structure.

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Published

2009-08-01

Issue

Vol. 20 No. 50 (2009)

Section

Articles

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How to Cite

Bastos, D. D., & Nakamura, W. T. (2009). Determinants of the capital structure of publicly-traded companies in Brazil, Mexico and Chile in the period 2001-2006 . Revista Contabilidade & Finanças, 20(50), 75-94. https://doi.org/10.1590/S1519-70772009000200006