HIGH INTEREST RATES, CAPITAL SOURCES AND CAPITAL STRUCTURE: THE DEBT OF BRAZILIAN COMPANIES IN THE PERIOD 1997-2006
DOI:
https://doi.org/10.11606/rco.v6i16.52667Keywords:
Capital structure, Capital sources, Differentiated interest rates, Trade-off theory, Pecking order theory.Abstract
Several studies have emphasized the necessity of incorporating factors unrelated to the firm characteristics into their capital structure analysis. Rajan and Zingalas (1995) and Booth et al. (2001) argued for the importance of institutional factors which have remained unexplored and Faulkender and Petersen (2006) have looked at the role of access to the public debt market in the determination of the leverage level. This paper evaluates the impact of (1) specific sources of capital with differentiated (subsidized) interest rates and (2) resources denominated in foreign currencies in the leverage of the Brazilian firms in the years 1997 to 2006, period in that several macroeconomic conditions for the development of the business activities in Brazil were far away from the reasonable, allowing to analyze what did the Brazilian companies with their capital structures in an environment of high interest rates. In order to do so we used classic variables of capital structure literature and variables representing institutional factors in a panel data regarding Brazilian firms in industrial sectors traded in BM&FBovespa in the period 1997-2006. The results showed that: i) the specific sources of capital and foreign currency lines have had a significant impact on the level of indebtedness of Brazilian firms; and ii) including access to these specific sources together with classic variables in the models for determining levels of indebtedness contributed to the understanding of the capital structure of the Brazilian firms.Downloads
Downloads
Published
Issue
Section
License
The RCO adopts the Free Open Access policy, under the standard Creative Commons agreement (CC BY-NC-ND 4.0). The agreement provides that:
- Submission of text authorizes its publication and implies commitment that the same material is not being submitted to another journal. The original is considered definitive.
- Authors retain the copyright and grant the journal the right of first publication, with the work simultaneously licensed under the Creative Commons Attribution License which allows the sharing of the work with acknowledgment of authorship and initial publication in this journal.
- Authors are authorized to take additional contracts separately, for non-exclusive distribution of the version of the work published in this journal (e.g. publish in an institutional repository or as a book chapter), with necessary recognition of authorship and initial publication in this journal.
- Authors are allowed and encouraged to publish and distribute their work online (e.g. in institutional repositories or on their personal page) before or during the editorial process, as this can generate productive changes as well as increase the impact and citation of published work (See The Effect of Free Access).
- The journal does not pay copyright to the authors of the published texts.
- The journal's copyright holder, except those already agreed in the Free Open Access Agreement (CC BY-NC-ND 4.0), is the Accounting Department of the Faculty of Economics, Administration and Accounting of Ribeirão Preto of the University of São Paulo.
No submission or publication fees are charged.
Up to 4 authors per article are accepted. Exceptionally duly justified cases may be reviewed by the Executive Committee of the RCO. Exceptional cases are considered as: multi-institutional projects; manuscripts resulting from the collaboration of research groups; or involving large teams for evidence collection, construction of primary data, and comparative experiments.
It is recommended that the authorship be ordered by contribution of each of the individuals listed as authors, especially in the design and planning of the research project, in obtaining or analyzing and interpreting data, and writing. Authors must declare the actual contributions of each author, filling the letter to the editor, at the beginning of the submission, taking responsibility for the information given.
Authors are allowed to change throughout the evaluation process and prior to the publication of the manuscript. The Authors should indicate the composition and final order of authorship in the document signed by all those involved when accepted for publication. If the composition and authoring order is different than previously reported in the system, all previously listed authors should be in agreement.
In the case of identification of authorship without merit or contribution (ghost, guest or gift authorship), the RCO follows the procedure recommended by COPE.
