Determinants of firm's capital structure: An econometric study on how Covid-19 impacted capital structure decisions of Portuguese touristic firms

• Autor(a) principal: Santos, Gonçalo David Antunes Lopes dos
• Data de Publicação: 2022
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/27436
• topic: Capital structures; Turismo -- Tourism; COVID-19; Fractional regression models; Estrutura de capital; Modelos de regressão fracionários

The hardships brought on by covid-19 were felt on every societal and economical level throughout the world and Portugal was no exception. This dissertation aims to analyse and understand how covid-19 impacted Portuguese touristic firms’ capital structure decisions. In addition to considering the traditional capital structure determinants, this study also controls for some factors more sector or firm specific. The findings were achieved by using fractional regression models, which were applied due to the bounded nature of the dependent variable analysed, leverage (Debt/Assets), whose values are in the [0, 1] range. The dataset used had 45 271 observations, ranging from 2018 to 2020, with all the Portuguese touristic firms with available information in the Orbis Europe platform that had no missing values being considered. The results found that covid-19 positively and significantly affected Portuguese touristic firms’ leverage. Results also show that the pecking order theory seem to be the one better suited to explain Portuguese touristic firms’ capital structure decisions.