The Capital Structure of Largest Brazilian Firms: an Empirical Analysis of the Pecking Order and Trade-Off Theories, Using Panel Data
Autor(a) principal: | |
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Data de Publicação: | 2013 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | por |
Título da fonte: | RAM. Revista de Administração Mackenzie |
Texto Completo: | https://editorarevistas.mackenzie.br/index.php/RAM/article/view/1411 |
Resumo: | Research on capital structure of companies are considered among the most important in the area of ??finance. Several theoretical approaches have been tested and discussed in the financial literature. This study investigates the level of indebtedness of the largest companies in the light of the two main theories that deal with the subject, the Pecking Order Theory and the Trade-Off theory, testing its determinants. Pecking Order theory suggests the existence of a hierarchy in the use of sources, while the Trade-Off theory considers the existence of a target capital structure that would be pursued by the company. The study is adapted from the article by Gaud et al., (2005), whose work served as the basis and main reference for the choice of the main variables and econometric tests performed. As Gaud et al. (2005) developed the statistical analyzes using the methodology of Panel Data, which considers the data in cross-sectional and longitudinal form. In addition to static tests, dynamic tests were performed, aiming to analyze the adjustment process of capital structure over time, toward a supposed optimal target level. The results showed a negative relationship between the level of indebtedness and the degree of asset tangibility and profitability as well as positive relationship between risk and indebtedness. Also our results showed that foreign-funded enterprises are more leveraged than domestic firms. Overall, the results suggest that the Pecking Order theory is more consistent than the Trade-Off theory to explain the capital structure of Brazilian companies. In particular, we highlight the negative relationship between indebtedness and profitability, confirming several other research results in the Brazilian reality. The dynamic analysis showed low speed of the adjustment process of capital structure towards the target level, suggesting the existence of high transaction costs and confirming the presence of a behavior aligned with the Pecking Order theory. |
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The Capital Structure of Largest Brazilian Firms: an Empirical Analysis of the Pecking Order and Trade-Off Theories, Using Panel DataLa Estructura de Capital de las Mayores Empresas Brasileñas: Análisis Empírico de las Teorías de Pecking Order y Trade-Off, Utilizando Panel DataA Estrutura de Capital das Maiores Empresas Brasileiras: Análise Empírica das Teorias de Pecking Order e Trade-Off Usando Panel DataDinâmica Panel DataCapital EstruturalTOTPOTTangibilidade dos ativos e a rentabilidade.Research on capital structure of companies are considered among the most important in the area of ??finance. Several theoretical approaches have been tested and discussed in the financial literature. This study investigates the level of indebtedness of the largest companies in the light of the two main theories that deal with the subject, the Pecking Order Theory and the Trade-Off theory, testing its determinants. Pecking Order theory suggests the existence of a hierarchy in the use of sources, while the Trade-Off theory considers the existence of a target capital structure that would be pursued by the company. The study is adapted from the article by Gaud et al., (2005), whose work served as the basis and main reference for the choice of the main variables and econometric tests performed. As Gaud et al. (2005) developed the statistical analyzes using the methodology of Panel Data, which considers the data in cross-sectional and longitudinal form. In addition to static tests, dynamic tests were performed, aiming to analyze the adjustment process of capital structure over time, toward a supposed optimal target level. The results showed a negative relationship between the level of indebtedness and the degree of asset tangibility and profitability as well as positive relationship between risk and indebtedness. Also our results showed that foreign-funded enterprises are more leveraged than domestic firms. Overall, the results suggest that the Pecking Order theory is more consistent than the Trade-Off theory to explain the capital structure of Brazilian companies. In particular, we highlight the negative relationship between indebtedness and profitability, confirming several other research results in the Brazilian reality. The dynamic analysis showed low speed of the adjustment process of capital structure towards the target level, suggesting the existence of high transaction costs and confirming the presence of a behavior aligned with the Pecking Order theory.La investigación sobre la estructura de capital de las empresas se consideran entre los más importantes en el área de las finanzas. Varios enfoques teóricos se han probado y discutido en la literatura financiera. Este estudio investiga el nivel de endeudamiento de las empresas más grandes basadas en las dos teorías principales que tienen que ver con el tema, la teoría de Pecking Order y la teoría de Trade-Off haciendo también las pruebas de sus determinantes. La teoría llamada Pecking Order sugiere la existencia de una jerarquía en la utilización de las fuentes, mientras que la teoría del Trade-off considera la existencia de una estructura de capital objetivo que se persigue por la empresa. El estudio es una adaptación del artículo de Gaud et al., (2005), cuyo trabajo sirvió de base y la referencia principal para la elección de las principales variables y pruebas econométricas realizadas. Como Gaud et al. (2005) nosotros hemos desarrollado el análisis utilizando la metodología de Datos de Panel, que combina una dimensión temporal con otra transversal de los datos. Además de las pruebas basadas en panel estático, realizamos también pruebas basadas en panel dinámico, con el objetivo de analizar el proceso de ajuste de la estructura de capital en el tiempo, hacia un supuesto nivel objetivo óptimo. Los resultados mostraron una relación negativa entre el nivel de endeudamiento y el grado de tangibilidad de los activos y la rentabilidad, así como una relación positiva entre riesgo y endeudamiento. También demostraron que las empresas de capital extranjero están más apalancados que las empresas nacionales. En general, los resultados sugieren que la teoría de Pecking Order es más consistente que la teoría de Trade-off para explicar la estructura de capital de las empresas brasileñas. En particular, se destaca la relación negativa entre endeudamiento y rentabilidad, lo que confirma otros resultados de investigación en la realidad brasileña. El análisis de panel dinámico presenta una baja velocidad del proceso de ajuste de la estructura de capital hacia el nivel objetivo, lo que sugiere la existencia de altos costos de transacción y confirma el comportamiento de Pecking Order desde la perspectiva de los directores.Este estudo buscou analisar o nível de endividamento das maiores empresas brasileiras, à luz das duas principais teorias que versam sobre o assunto, a teoria de Pecking Order e a teoria de Trade-Of, testando seus determinantes. O estudo é uma adaptação do artigo de Gaud et al., (2005), cujo trabalho serviu como base para escolha de algumas variáveis e dos testes econométricos realizados e utiliza a metodologia de Panel Data. Além de testes estáticos, foram feitos testes dinâmicos, com o objetivo de analisar o processo de ajuste da estrutura de capital ao longo do tempo, em direção a um suposto nível-alvo ótimo. Os resultados demonstraram relação negativa entre o nível de endividamento das empresas, o grau de tangibilidade dos ativos e a rentabilidade, bem como relação positiva do endividamento com o risco. Demonstraram ainda que empresas de capital estrangeiro são mais endividadas que empresas nacionais. De um modo geral, os resultados sugerem que a teoria de Pecking Order é mais consistente do que a teoria de Trade-Off para explicar a estrutura de capital das maiores empresas brasileiras. A análise dinâmica demonstrou baixa velocidade do processo de ajuste da estrutura de capital em direção ao nível-alvo, sugerindo a existência de elevados custos de transação e confirmando o comportamento de Pecking Order dos administradores.Editora Mackenzie2013-03-06info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPANEL DATAapplication/pdfhttps://editorarevistas.mackenzie.br/index.php/RAM/article/view/1411Revista de Administração Mackenzie; Vol. 14 No. 4 (2013)Revista de Administração Mackenzie; Vol. 14 Núm. 4 (2013)Revista de Administração Mackenzie (Mackenzie Management Review); v. 14 n. 4 (2013)1678-69711518-6776reponame:RAM. Revista de Administração Mackenzieinstname:Universidade Presbiteriana Mackenzie (MACKENZIE)instacron:MACKENZIEporhttps://editorarevistas.mackenzie.br/index.php/RAM/article/view/1411/4440Copyright (c) 2015 Revista de Administração Mackenzieinfo:eu-repo/semantics/openAccessCorrea, Carlos AlbertoCruz Basso, Leonardo FernandoNakamura, Wilson Toshiro2013-09-04T17:50:22Zoai:ojs.editorarevistas.mackenzie.br:article/1411Revistahttps://editorarevistas.mackenzie.br/index.php/RAM/PUBhttps://editorarevistas.mackenzie.br/index.php/RAM/oairevista.adm@mackenzie.br1678-69711518-6776opendoar:2024-04-19T17:00:37.710887RAM. Revista de Administração Mackenzie - Universidade Presbiteriana Mackenzie (MACKENZIE)false |
dc.title.none.fl_str_mv |
The Capital Structure of Largest Brazilian Firms: an Empirical Analysis of the Pecking Order and Trade-Off Theories, Using Panel Data La Estructura de Capital de las Mayores Empresas Brasileñas: Análisis Empírico de las Teorías de Pecking Order y Trade-Off, Utilizando Panel Data A Estrutura de Capital das Maiores Empresas Brasileiras: Análise Empírica das Teorias de Pecking Order e Trade-Off Usando Panel Data |
title |
The Capital Structure of Largest Brazilian Firms: an Empirical Analysis of the Pecking Order and Trade-Off Theories, Using Panel Data |
spellingShingle |
The Capital Structure of Largest Brazilian Firms: an Empirical Analysis of the Pecking Order and Trade-Off Theories, Using Panel Data Correa, Carlos Alberto Dinâmica Panel Data Capital Estrutural TOT POT Tangibilidade dos ativos e a rentabilidade. |
title_short |
The Capital Structure of Largest Brazilian Firms: an Empirical Analysis of the Pecking Order and Trade-Off Theories, Using Panel Data |
title_full |
The Capital Structure of Largest Brazilian Firms: an Empirical Analysis of the Pecking Order and Trade-Off Theories, Using Panel Data |
title_fullStr |
The Capital Structure of Largest Brazilian Firms: an Empirical Analysis of the Pecking Order and Trade-Off Theories, Using Panel Data |
title_full_unstemmed |
The Capital Structure of Largest Brazilian Firms: an Empirical Analysis of the Pecking Order and Trade-Off Theories, Using Panel Data |
title_sort |
The Capital Structure of Largest Brazilian Firms: an Empirical Analysis of the Pecking Order and Trade-Off Theories, Using Panel Data |
author |
Correa, Carlos Alberto |
author_facet |
Correa, Carlos Alberto Cruz Basso, Leonardo Fernando Nakamura, Wilson Toshiro |
author_role |
author |
author2 |
Cruz Basso, Leonardo Fernando Nakamura, Wilson Toshiro |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Correa, Carlos Alberto Cruz Basso, Leonardo Fernando Nakamura, Wilson Toshiro |
dc.subject.por.fl_str_mv |
Dinâmica Panel Data Capital Estrutural TOT POT Tangibilidade dos ativos e a rentabilidade. |
topic |
Dinâmica Panel Data Capital Estrutural TOT POT Tangibilidade dos ativos e a rentabilidade. |
description |
Research on capital structure of companies are considered among the most important in the area of ??finance. Several theoretical approaches have been tested and discussed in the financial literature. This study investigates the level of indebtedness of the largest companies in the light of the two main theories that deal with the subject, the Pecking Order Theory and the Trade-Off theory, testing its determinants. Pecking Order theory suggests the existence of a hierarchy in the use of sources, while the Trade-Off theory considers the existence of a target capital structure that would be pursued by the company. The study is adapted from the article by Gaud et al., (2005), whose work served as the basis and main reference for the choice of the main variables and econometric tests performed. As Gaud et al. (2005) developed the statistical analyzes using the methodology of Panel Data, which considers the data in cross-sectional and longitudinal form. In addition to static tests, dynamic tests were performed, aiming to analyze the adjustment process of capital structure over time, toward a supposed optimal target level. The results showed a negative relationship between the level of indebtedness and the degree of asset tangibility and profitability as well as positive relationship between risk and indebtedness. Also our results showed that foreign-funded enterprises are more leveraged than domestic firms. Overall, the results suggest that the Pecking Order theory is more consistent than the Trade-Off theory to explain the capital structure of Brazilian companies. In particular, we highlight the negative relationship between indebtedness and profitability, confirming several other research results in the Brazilian reality. The dynamic analysis showed low speed of the adjustment process of capital structure towards the target level, suggesting the existence of high transaction costs and confirming the presence of a behavior aligned with the Pecking Order theory. |
publishDate |
2013 |
dc.date.none.fl_str_mv |
2013-03-06 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion PANEL DATA |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://editorarevistas.mackenzie.br/index.php/RAM/article/view/1411 |
url |
https://editorarevistas.mackenzie.br/index.php/RAM/article/view/1411 |
dc.language.iso.fl_str_mv |
por |
language |
por |
dc.relation.none.fl_str_mv |
https://editorarevistas.mackenzie.br/index.php/RAM/article/view/1411/4440 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2015 Revista de Administração Mackenzie info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2015 Revista de Administração Mackenzie |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Editora Mackenzie |
publisher.none.fl_str_mv |
Editora Mackenzie |
dc.source.none.fl_str_mv |
Revista de Administração Mackenzie; Vol. 14 No. 4 (2013) Revista de Administração Mackenzie; Vol. 14 Núm. 4 (2013) Revista de Administração Mackenzie (Mackenzie Management Review); v. 14 n. 4 (2013) 1678-6971 1518-6776 reponame:RAM. Revista de Administração Mackenzie instname:Universidade Presbiteriana Mackenzie (MACKENZIE) instacron:MACKENZIE |
instname_str |
Universidade Presbiteriana Mackenzie (MACKENZIE) |
instacron_str |
MACKENZIE |
institution |
MACKENZIE |
reponame_str |
RAM. Revista de Administração Mackenzie |
collection |
RAM. Revista de Administração Mackenzie |
repository.name.fl_str_mv |
RAM. Revista de Administração Mackenzie - Universidade Presbiteriana Mackenzie (MACKENZIE) |
repository.mail.fl_str_mv |
revista.adm@mackenzie.br |
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1796794716927295488 |