The impact of financial crisis on portuguese firms' capital structure

• Autor(a) principal: Lemos, Jéssica Andreia Rocha
• Data de Publicação: 2017
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/15763
• topic: Capital structure; Trade-off theory; International Monetary Fund; Financial crisis; Estrutura de capital; Fundo monetário internacional; Crise financeira - 2011-2013; Empresa; Regressão linear; Portugal

This study aims to verify the impacts of financial crises in the capital structure for Portuguese companies. The purpose is to study different firm-specific determinants of a sample of general PSI Portuguese listed firms at the Euronext Lisbon stock exchange, during the recent crises that endured from 2011 until 2013 and test the impacts on short and long-term debt. In order to test the changes/impacts on Portuguese firms’ capital structure, the most important theories around capital structure decisions, Modigliani & Miller, Trade-off, Pecking Order and the Agency theory, will be presented. Among the many determinants that are considered to influence capital structure decisions, size, profitability, tangibility, growth, liquidity and non-debt tax shield, were chosen to test their impacts on Portuguese company. The sample used considers the period from 2005 to 2015 for 33 Portuguese listed firms. A regression analysis will be used to infer about the effects on long-term and short-term debt when the determinants change. Results obtained support both trade-off and pecking order theories. Short-term debt ratios reported a tendency of increase during the financial crisis while long-term debt registered a decrease.