Bonds, Bondholders Protection and Asset Allocation of Multimarket Funds
Autor(a) principal: | |
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Data de Publicação: | 2020 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng por |
Título da fonte: | BBR. Brazilian Business Review (English edition. Online) |
Texto Completo: | http://www.bbronline.com.br/index.php/bbr/article/view/569 |
Resumo: | This paper aims to create a bondholders’ protection index (BPI) and to investigate what the influence of this index would be on multimarket funds’ allocation in corporate bonds. Understanding this relation is relevant because only about 1.36% of multimarket funds’ portfolios correspond to debentures. This study advances the literature by covering a topic little discussed in a Brazilian context, proposing the creation of a BPI, which would be related to the number of automatic maturity clauses, which guarantee immediate payment to bondholders in cases of the rupture of a contract. This research comprised 926 debentures series issued in Brazil from 2009 to 2017, and 1,753 multimarket funds, which allocated some portfolios’ percentage in these securities. In creating the BPI, we contemplated 15 restrictive clauses, which the most common correspond to negligent business performance, liquidation, dissolution and bankruptcy, and restrictions related to company structure. Moreover, we examined less common restrictive clauses as well, including indebtedness policy, shares issuance and amortization, and ratings downgrading. Regarding data analysis, we employed multiple linear regression models, with pooled estimators, applying the standard error correction by White’s robust matrix (1980). The main results suggest that BPI positively effects multimarket funds’ allocation in debentures. Furthermore, this influence is more intense in indentures with higher number of clauses with automatic maturity. Thus, this study contributes to literature about restrictive clauses, since it demonstrates that debentures’ flexible and adaptable structure seems to be interesting for the main bondholders in Brazil. |
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Bonds, Bondholders Protection and Asset Allocation of Multimarket FundsDebe?ntures, Protec?a?o dos Credores e Alocac?a?o de Ativos por Fundos Multimercadosbondholders’ protection indexcorporate bondsmultimarket fundsriskcorporate financingíndice de proteção dos credoresdebênturesfundos multimercadosriscofinanciamento corporativo This paper aims to create a bondholders’ protection index (BPI) and to investigate what the influence of this index would be on multimarket funds’ allocation in corporate bonds. Understanding this relation is relevant because only about 1.36% of multimarket funds’ portfolios correspond to debentures. This study advances the literature by covering a topic little discussed in a Brazilian context, proposing the creation of a BPI, which would be related to the number of automatic maturity clauses, which guarantee immediate payment to bondholders in cases of the rupture of a contract. This research comprised 926 debentures series issued in Brazil from 2009 to 2017, and 1,753 multimarket funds, which allocated some portfolios’ percentage in these securities. In creating the BPI, we contemplated 15 restrictive clauses, which the most common correspond to negligent business performance, liquidation, dissolution and bankruptcy, and restrictions related to company structure. Moreover, we examined less common restrictive clauses as well, including indebtedness policy, shares issuance and amortization, and ratings downgrading. Regarding data analysis, we employed multiple linear regression models, with pooled estimators, applying the standard error correction by White’s robust matrix (1980). The main results suggest that BPI positively effects multimarket funds’ allocation in debentures. Furthermore, this influence is more intense in indentures with higher number of clauses with automatic maturity. Thus, this study contributes to literature about restrictive clauses, since it demonstrates that debentures’ flexible and adaptable structure seems to be interesting for the main bondholders in Brazil. Este estudo tem como objetivo criar um i?ndice de protec?a?o dos credores (IPCr) e investigar qual a influe?ncia desse i?ndice no interesse dos fundos multimercados pela aquisic?a?o de debe?ntures. E? relevante compreender o que influencia os fundos multimercados a adquirir debe?ntures, pois somente cerca de 1,36% dos portfo?lios dos fundos investigados e? alocado nesses ti?tulos de di?vida. Desse modo, entende-se que esta pesquisa avanc?a a literatura na?o so? por abranger um tema pouco investigado na realidade brasileira, mas tambe?m por propor a criac?a?o de um i?ndice e realizar a sua interac?a?o com o nu?mero de cla?usulas de “vencimento automa?tico”, a qual garante o imediato pagamento aos credores em situac?o?es de violac?a?o do contrato. A pesquisa envolveu 926 se?ries de debe?ntures, emitidas no Brasil de 2009 a 2017, e 1.753 fundos multimercados, que alocaram algum percentual das carteiras nesses ti?tulos. O IPCr contemplou 15 cla?usulas restritivas, sendo as mais comuns correspondentes a? atuac?a?o negligente das empresas, a? liquidac?a?o, dissoluc?a?o e fale?ncia, e a?s restric?o?es quanto a? mudanc?a da estrutura da empresa. Ja? as menos comuns compreendem a poli?tica de endividamento, de emissa?o e amortizac?a?o de ac?o?es, e rebaixamento do rating. A respeito da ana?lise dos dados, foram utilizados modelos de regressa?o linear mu?ltipla, com dados agrupados e correc?a?o dos erros padra?o pela matriz robusta de White (1980). Os resultados sugerem evide?ncias de que o IPCr afeta positivamente as porcentagens investidas pelos fundos multimercados em debe?ntures. O efeito do IPCr nas porcentagens investidas pelos fundos e? maior para escrituras que possuem elevado nu?mero de cla?usulas com vencimento automa?tico. A identificac?a?o desse efeito representa uma contribuic?a?o aos trabalhos sobre as cla?usulas restritivas, por demonstrarem que a estrutura flexi?vel e adapta?vel das debe?ntures parece atrair o interesse dos principais credores desses ti?tulos no Brasil. FUCAPE Business Shool2020-03-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPeer-reviewed ArticleArtigo revisado pelos paresapplication/pdfapplication/pdfhttp://www.bbronline.com.br/index.php/bbr/article/view/56910.15728/bbr.2020.17.2.1Brazilian Business Review; Vol. 17 No. 2 (2020): March to April 2020; 132-150Brazilian Business Review; v. 17 n. 2 (2020): Março a Abril de 2020; 132-1501808-23861807-734Xreponame:BBR. Brazilian Business Review (English edition. Online)instname:Fucape Business School (FBS)instacron:FBSengporhttp://www.bbronline.com.br/index.php/bbr/article/view/569/857http://www.bbronline.com.br/index.php/bbr/article/view/569/858Copyright (c) 2020 Brazilian Business Reviewhttp://creativecommons.org/licenses/by/4.0info:eu-repo/semantics/openAccessGuimarães, Thayse MachadoMalaquias, Rodrigo Fernandes2020-03-01T11:17:33Zoai:ojs.pkp.sfu.ca:article/569Revistahttps://www.bbronline.com.br/index.php/bbr/indexONGhttp://www.bbronline.com.br/index.php/bbr/oai|| bbronline@bbronline.com.br1808-23861808-2386opendoar:2020-03-01T11:17:33BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS)false |
dc.title.none.fl_str_mv |
Bonds, Bondholders Protection and Asset Allocation of Multimarket Funds Debe?ntures, Protec?a?o dos Credores e Alocac?a?o de Ativos por Fundos Multimercados |
title |
Bonds, Bondholders Protection and Asset Allocation of Multimarket Funds |
spellingShingle |
Bonds, Bondholders Protection and Asset Allocation of Multimarket Funds Guimarães, Thayse Machado bondholders’ protection index corporate bonds multimarket funds risk corporate financing índice de proteção dos credores debêntures fundos multimercados risco financiamento corporativo |
title_short |
Bonds, Bondholders Protection and Asset Allocation of Multimarket Funds |
title_full |
Bonds, Bondholders Protection and Asset Allocation of Multimarket Funds |
title_fullStr |
Bonds, Bondholders Protection and Asset Allocation of Multimarket Funds |
title_full_unstemmed |
Bonds, Bondholders Protection and Asset Allocation of Multimarket Funds |
title_sort |
Bonds, Bondholders Protection and Asset Allocation of Multimarket Funds |
author |
Guimarães, Thayse Machado |
author_facet |
Guimarães, Thayse Machado Malaquias, Rodrigo Fernandes |
author_role |
author |
author2 |
Malaquias, Rodrigo Fernandes |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Guimarães, Thayse Machado Malaquias, Rodrigo Fernandes |
dc.subject.por.fl_str_mv |
bondholders’ protection index corporate bonds multimarket funds risk corporate financing índice de proteção dos credores debêntures fundos multimercados risco financiamento corporativo |
topic |
bondholders’ protection index corporate bonds multimarket funds risk corporate financing índice de proteção dos credores debêntures fundos multimercados risco financiamento corporativo |
description |
This paper aims to create a bondholders’ protection index (BPI) and to investigate what the influence of this index would be on multimarket funds’ allocation in corporate bonds. Understanding this relation is relevant because only about 1.36% of multimarket funds’ portfolios correspond to debentures. This study advances the literature by covering a topic little discussed in a Brazilian context, proposing the creation of a BPI, which would be related to the number of automatic maturity clauses, which guarantee immediate payment to bondholders in cases of the rupture of a contract. This research comprised 926 debentures series issued in Brazil from 2009 to 2017, and 1,753 multimarket funds, which allocated some portfolios’ percentage in these securities. In creating the BPI, we contemplated 15 restrictive clauses, which the most common correspond to negligent business performance, liquidation, dissolution and bankruptcy, and restrictions related to company structure. Moreover, we examined less common restrictive clauses as well, including indebtedness policy, shares issuance and amortization, and ratings downgrading. Regarding data analysis, we employed multiple linear regression models, with pooled estimators, applying the standard error correction by White’s robust matrix (1980). The main results suggest that BPI positively effects multimarket funds’ allocation in debentures. Furthermore, this influence is more intense in indentures with higher number of clauses with automatic maturity. Thus, this study contributes to literature about restrictive clauses, since it demonstrates that debentures’ flexible and adaptable structure seems to be interesting for the main bondholders in Brazil. |
publishDate |
2020 |
dc.date.none.fl_str_mv |
2020-03-01 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Peer-reviewed Article Artigo revisado pelos pares |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://www.bbronline.com.br/index.php/bbr/article/view/569 10.15728/bbr.2020.17.2.1 |
url |
http://www.bbronline.com.br/index.php/bbr/article/view/569 |
identifier_str_mv |
10.15728/bbr.2020.17.2.1 |
dc.language.iso.fl_str_mv |
eng por |
language |
eng por |
dc.relation.none.fl_str_mv |
http://www.bbronline.com.br/index.php/bbr/article/view/569/857 http://www.bbronline.com.br/index.php/bbr/article/view/569/858 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2020 Brazilian Business Review http://creativecommons.org/licenses/by/4.0 info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2020 Brazilian Business Review http://creativecommons.org/licenses/by/4.0 |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/pdf |
dc.publisher.none.fl_str_mv |
FUCAPE Business Shool |
publisher.none.fl_str_mv |
FUCAPE Business Shool |
dc.source.none.fl_str_mv |
Brazilian Business Review; Vol. 17 No. 2 (2020): March to April 2020; 132-150 Brazilian Business Review; v. 17 n. 2 (2020): Março a Abril de 2020; 132-150 1808-2386 1807-734X reponame:BBR. Brazilian Business Review (English edition. Online) instname:Fucape Business School (FBS) instacron:FBS |
instname_str |
Fucape Business School (FBS) |
instacron_str |
FBS |
institution |
FBS |
reponame_str |
BBR. Brazilian Business Review (English edition. Online) |
collection |
BBR. Brazilian Business Review (English edition. Online) |
repository.name.fl_str_mv |
BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS) |
repository.mail.fl_str_mv |
|| bbronline@bbronline.com.br |
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1754732239200976896 |