DOES THE CAPITAL STRUCTURE RELEVANT TO BANKS’ PROFITABILITY? EMPIRICAL EVIDENCE IN LARGEST BRAZILIAN BANKS WITH PAPERS TRADED IN [B]3

• Main Author: Godoi, Alexandre Franco de
• Publication Date: 2021
• Other Authors: Santos, José Odálio dos, Santos, Fernando de Almeida, Marion, José Carlos
• Format: Article
• Language: por
• Source: Internext
• Download full: https://internext.espm.br/internext/article/view/577
• topic: Capital Structure Relevance; Bank’s Profitability Determinants; Relevância da Estrutura de Capital; Determinantes da Rentabilidade Bancária; Desempenho dos Bancos; Estrutura de Capital e Rentabilidade nos Bancos

Objective: To identify evidence of the capital structure relevance and the main banking strategies for value maximization in banks.Method: This is an empirical-analytical, descriptive research with a quantitative approach. Longitudinal data from the Economatica® database were collected from the first quarter of 2008 to the fourth quarter of 2018. Linear regression tests were performed for the analyzes (panel data).Main results: There is evidence of the capital structure relevance and the influence of banking strategies on bank profitability measured based on ROICADJUSTED.Relevance and originality: The timeliness, relevance and inevitable critical debates on the subject arouse the interest of the academic area for research directed to the critical analysis of the capital structure relevance and operational strategies for value maximization.Theoretical Contributions: It provides the inevitable academic debate about capital structure relevance and key banking strategies for maximizing value in the largest publicly traded banks.Social Contributions: Contributes to the decision-making process of sector managers, investors, financial analysts and regulatory bodies by addressing the capital structure relevance to banks, the risks and costs involved, the key aspects that encourage high levels of financial leverage and the determining factors for profitability.