Capital Structure of Brazil, Russia, India and China by Economic Crisis

• Autor(a) principal: Silva, Edilson dos Santos
• Data de Publicação: 2016
• Outros Autores: Santos, Josete Florencio dos, Perobelli, Fernanda Finotti Cordeiro, Nakamura, Wilson Toshiro
• Tipo de documento: Artigo
• Idioma: eng; por
• Título da fonte: RAM. Revista de Administração Mackenzie
• Texto Completo: https://editorarevistas.mackenzie.br/index.php/RAM/article/view/8294
• topic: Pecking Order. Trade-off. Capital Structure. Emerging countries. Economic Crisis.; Pecking Order. Trade-off. Estructura de Capital. Los países emergentes. Crisis Económica.; Pecking Order. Trade-off. Estrutura de Capital. Países Emergentes. Crise Econômica.

Purpose: Verify the effects of the subprime mortgage crisis on firms with different debt levels.Originality/Gap/Relevance/Implications: The study contributes to the literature by examining the financial capital structure of emerging market companies in a context of crisis, in addition to using a robust econometric tool - the quantile regression.Key methodological aspects: In this work the quantile regression was used as analysis tool, this technique allowed to observe the impacts of the crisis not only in the average level of indebtedness of companies, but also in its extreme values. Therefore, this work is characterized as descriptive, and analyzed relations are quantitative. Firms were analyzed in Brazil, Russia, India, China.Summary of key results: The results indicate financing strategies, according to the theories of Pecking Order and Trade-off according to the level of debt.Key considerations/conclusions: The survey concluded that firms have different financing strategies, in the same country. Thus, the financial performance of firms would be influenced by economic conditions in the country, as well as the existing debt level in each company.