Subsectorial competitiveness and capital structure of Brazilian B3 public companies

• Autor(a) principal: Oliveira, Filipi Assunção
• Data de Publicação: 2022
• Outros Autores: Botelho, Anselmo Sebastião, Lamounier, Wagner Moura, Bressan, Valéria Gama Fully
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Revista de Ciências da Administração
• Texto Completo: https://periodicos.ufsc.br/index.php/adm/article/view/80799
• topic: Atividade motora

Our objective was to assess the impact of market competitiveness on the capital structure of Brazilian firms. A sample of 296 companies on B3 was analyzed during the years 2014 to 2018, totaling 1,409 observations. The level of market competitiveness for each company/year was measured based on the Herfindahl-Hirschman index. Panel data was used to verify whether the variables “profitability”, “size”, “composition of assets”, “growth” and “market competition” have explanatory power over “net indebtedness”. The adherence of the behavior of these variables to the predictions of the static trade-off and pecking order theories was also evaluated. The main findings point to: (i) the level of competitiveness in the Brazilian market was not statistically significant to explain the debt behavior of the companies in the sample; and (ii) the variables “profitability”, “size” and “composition of assets” proved to be significant to explain the “net debt”, and its behavior points to an adherence to the expectations brought by static trade-off theory