Effect of the Firm Life Cycle in the Relationship between Quality of Corporate Governance and Cost of Debt of Public Companies in Brazil

Detalhes bibliográficos
Autor(a) principal: Ribeiro, João Paulo Machado
Data de Publicação: 2021
Outros Autores: Viana, Dêner Matheus da Silva, Martins, Orleans Silva
Tipo de documento: Artigo
Idioma: eng
por
Título da fonte: Contabilidade, Gestão e Governança
Texto Completo: https://revistacgg.org/index.php/contabil/article/view/2612
Resumo: Objective: We investigate the effect of the life cycle stage on the relationship between the corporate governance quality and the cost of debt of public companies in Brazil. Method: The corporate governance quality was measured using an index (CGI) composed of 9 items and the cost of debt was captured directly from the explanatory notes of the financial statements. The analysis included 49 non-financial companies included in the IBrX-100 between 2010 and 2019, with the help of panel data regressions. Originality/Relevance: The study innovates by exploring the moderating effect of the life cycle stage of firms on the relationship between corporate governance and cost of debt, demonstrating that this association is more important in the Turbulence and Decline stages. Results: The average cost of debt was 7.64% p.a., lower than the averages shown in previous studies in the Brazilian context, being more in line with market practices. The findings demonstrate that governance is more important in reducing the cost of debt for companies in the Turbulence and Decline stages, revealing that the company's life cycle matters for this relationship. Theoretical/Methodological contributions: The study demonstrates that the cost of debt is not adequately represented by the aggregate of the item “Financial Expenses” in the company’s financial statements, that the credit market tends to include governance in determining the cost of capital, and that the life cycle it is especially important for lowering the cost of debt for riskier companies in the Turbulence and Decline stages.
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spelling Effect of the Firm Life Cycle in the Relationship between Quality of Corporate Governance and Cost of Debt of Public Companies in BrazilEfeito do Ciclo de Vida na Relação entre Qualidade da Governança Corporativa e Custo da Dívida das Empresas Abertas no BrasilCusto da DívidaGovernança CorporativaCiclo de Vida da FirmaCost of DebtCorporate GovernanceFirm Life CycleObjective: We investigate the effect of the life cycle stage on the relationship between the corporate governance quality and the cost of debt of public companies in Brazil. Method: The corporate governance quality was measured using an index (CGI) composed of 9 items and the cost of debt was captured directly from the explanatory notes of the financial statements. The analysis included 49 non-financial companies included in the IBrX-100 between 2010 and 2019, with the help of panel data regressions. Originality/Relevance: The study innovates by exploring the moderating effect of the life cycle stage of firms on the relationship between corporate governance and cost of debt, demonstrating that this association is more important in the Turbulence and Decline stages. Results: The average cost of debt was 7.64% p.a., lower than the averages shown in previous studies in the Brazilian context, being more in line with market practices. The findings demonstrate that governance is more important in reducing the cost of debt for companies in the Turbulence and Decline stages, revealing that the company's life cycle matters for this relationship. Theoretical/Methodological contributions: The study demonstrates that the cost of debt is not adequately represented by the aggregate of the item “Financial Expenses” in the company’s financial statements, that the credit market tends to include governance in determining the cost of capital, and that the life cycle it is especially important for lowering the cost of debt for riskier companies in the Turbulence and Decline stages.Objetivo: Investigar o efeito do estágio de ciclo de vida na relação entre a qualidade da governança corporativa e o custo da dívida das empresas abertas no Brasil. Método: A qualidade da governança corporativa foi medida por meio de um índice (CGI) composto por 9 itens e o custo da dívida foi capturado diretamente das notas explicativas das demonstrações financeiras. A análise contou com 49 empresas não financeiras integrantes do IBrX-100 entre os anos de 2010 e 2019, com auxílio de regressões com dados em painel. Originalidade/Relevância: O estudo inova aos explorar o efeito moderador do estágio do ciclo de vida das firmas na relação entre governança corporativa e custo da dívida, demonstrando que essa associação é mais importante nos estágios de Turbulência e Declínio. Resultados: O custo médio da dívida foi de 7,64% a.a., inferior às médias evidenciadas em estudos anteriores no contexto brasileiro, estando mais alinhado às práticas do mercado. Os achados demonstram que a governança é mais importante para a redução do custo da dívida de empresas nos estágios de Turbulência e Declínio, revelando que efetivamente o ciclo de vida da empresa importa para essa relação. Contribuições teóricas/metodológicas: O estudo demonstra que o custo da dívida não é representado adequadamente pelo agregado da rubrica “Despesas Financeiras” das demonstrações financeiras da empresa, que o mercado de crédito tende a incluir a governança na determinação do custo do capital e que o ciclo de vida é especialmente importante para a redução do custo da dívida de empresas mais arriscadas, nos estágios de Turbulência e de Declínio.Contabilidade Gestão e Governança2021-12-30info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfapplication/pdfhttps://revistacgg.org/index.php/contabil/article/view/261210.51341/1984-3925_2021v24n3a3Contabilidade Gestão e Governança; v. 24 n. 3 (2021); 293-3111984-39251984-3925reponame:Contabilidade, Gestão e Governançainstname:Universidade de Brasília (UnB)instacron:UNBengporhttps://revistacgg.org/index.php/contabil/article/view/2612/705https://revistacgg.org/index.php/contabil/article/view/2612/717Copyright (c) 2021 Revista Contabilidade, Gestão e Governançainfo:eu-repo/semantics/openAccessRibeiro, João Paulo MachadoViana, Dêner Matheus da SilvaMartins, Orleans Silva2022-09-22T08:38:21Zoai:oai.jamg.cloud:article/2612Revistahttp://www.revistacgg.org/index.php/contabilPUBhttps://revistacgg.org/index.php/contabil/oaijamg.cgg@gmail.com1516-70111984-3925opendoar:2022-09-22T08:38:21Contabilidade, Gestão e Governança - Universidade de Brasília (UnB)false
dc.title.none.fl_str_mv Effect of the Firm Life Cycle in the Relationship between Quality of Corporate Governance and Cost of Debt of Public Companies in Brazil
Efeito do Ciclo de Vida na Relação entre Qualidade da Governança Corporativa e Custo da Dívida das Empresas Abertas no Brasil
title Effect of the Firm Life Cycle in the Relationship between Quality of Corporate Governance and Cost of Debt of Public Companies in Brazil
spellingShingle Effect of the Firm Life Cycle in the Relationship between Quality of Corporate Governance and Cost of Debt of Public Companies in Brazil
Ribeiro, João Paulo Machado
Custo da Dívida
Governança Corporativa
Ciclo de Vida da Firma
Cost of Debt
Corporate Governance
Firm Life Cycle
title_short Effect of the Firm Life Cycle in the Relationship between Quality of Corporate Governance and Cost of Debt of Public Companies in Brazil
title_full Effect of the Firm Life Cycle in the Relationship between Quality of Corporate Governance and Cost of Debt of Public Companies in Brazil
title_fullStr Effect of the Firm Life Cycle in the Relationship between Quality of Corporate Governance and Cost of Debt of Public Companies in Brazil
title_full_unstemmed Effect of the Firm Life Cycle in the Relationship between Quality of Corporate Governance and Cost of Debt of Public Companies in Brazil
title_sort Effect of the Firm Life Cycle in the Relationship between Quality of Corporate Governance and Cost of Debt of Public Companies in Brazil
author Ribeiro, João Paulo Machado
author_facet Ribeiro, João Paulo Machado
Viana, Dêner Matheus da Silva
Martins, Orleans Silva
author_role author
author2 Viana, Dêner Matheus da Silva
Martins, Orleans Silva
author2_role author
author
dc.contributor.author.fl_str_mv Ribeiro, João Paulo Machado
Viana, Dêner Matheus da Silva
Martins, Orleans Silva
dc.subject.por.fl_str_mv Custo da Dívida
Governança Corporativa
Ciclo de Vida da Firma
Cost of Debt
Corporate Governance
Firm Life Cycle
topic Custo da Dívida
Governança Corporativa
Ciclo de Vida da Firma
Cost of Debt
Corporate Governance
Firm Life Cycle
description Objective: We investigate the effect of the life cycle stage on the relationship between the corporate governance quality and the cost of debt of public companies in Brazil. Method: The corporate governance quality was measured using an index (CGI) composed of 9 items and the cost of debt was captured directly from the explanatory notes of the financial statements. The analysis included 49 non-financial companies included in the IBrX-100 between 2010 and 2019, with the help of panel data regressions. Originality/Relevance: The study innovates by exploring the moderating effect of the life cycle stage of firms on the relationship between corporate governance and cost of debt, demonstrating that this association is more important in the Turbulence and Decline stages. Results: The average cost of debt was 7.64% p.a., lower than the averages shown in previous studies in the Brazilian context, being more in line with market practices. The findings demonstrate that governance is more important in reducing the cost of debt for companies in the Turbulence and Decline stages, revealing that the company's life cycle matters for this relationship. Theoretical/Methodological contributions: The study demonstrates that the cost of debt is not adequately represented by the aggregate of the item “Financial Expenses” in the company’s financial statements, that the credit market tends to include governance in determining the cost of capital, and that the life cycle it is especially important for lowering the cost of debt for riskier companies in the Turbulence and Decline stages.
publishDate 2021
dc.date.none.fl_str_mv 2021-12-30
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://revistacgg.org/index.php/contabil/article/view/2612
10.51341/1984-3925_2021v24n3a3
url https://revistacgg.org/index.php/contabil/article/view/2612
identifier_str_mv 10.51341/1984-3925_2021v24n3a3
dc.language.iso.fl_str_mv eng
por
language eng
por
dc.relation.none.fl_str_mv https://revistacgg.org/index.php/contabil/article/view/2612/705
https://revistacgg.org/index.php/contabil/article/view/2612/717
dc.rights.driver.fl_str_mv Copyright (c) 2021 Revista Contabilidade, Gestão e Governança
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Copyright (c) 2021 Revista Contabilidade, Gestão e Governança
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv Contabilidade Gestão e Governança
publisher.none.fl_str_mv Contabilidade Gestão e Governança
dc.source.none.fl_str_mv Contabilidade Gestão e Governança; v. 24 n. 3 (2021); 293-311
1984-3925
1984-3925
reponame:Contabilidade, Gestão e Governança
instname:Universidade de Brasília (UnB)
instacron:UNB
instname_str Universidade de Brasília (UnB)
instacron_str UNB
institution UNB
reponame_str Contabilidade, Gestão e Governança
collection Contabilidade, Gestão e Governança
repository.name.fl_str_mv Contabilidade, Gestão e Governança - Universidade de Brasília (UnB)
repository.mail.fl_str_mv jamg.cgg@gmail.com
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