Capital structure, cash holdings and firm value: a study of brazilian listed firms
Autor(a) principal: | |
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Data de Publicação: | 2014 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | por eng |
Título da fonte: | Revista Contabilidade & Finanças (Online) |
Texto Completo: | https://www.revistas.usp.br/rcf/article/view/80749 |
Resumo: | This study analyzed the relationship among capital structure, cash holdings and firm value for a sample of publicly traded Brazilian firms, through panel data regressions, employing the fixed-effects estimator. Initially, it was estimated regressions between capital structure (debt to total capital) and cash holdings (cash to assets), as well as between cash holdings and short and long-term debt. Next, it was applied a regression among firm value, capital structure and cash holdings. The results of this study suggested that debt, both short and long-termed, is negatively related to cash holdings, and that the level of cash holdings is also associated to a lower leverage. The study also presented indirect evidence that financially constrained firms hold more cash. Regarding to the impact of the capital structure on the firm value, short-term debt, longterm debt and the financial constraint had negative marginal effects on the firm value, suggesting a risk-averse behavior of investors in relation to debt. Cash holdings, instead, is valued as positive by investors, but up to an optimum threshold level. Further, the market capitalization is discounted with respect to cash holdings (inverted U-curve), in synergy with static trade-off theory of cash holdings. |
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Capital structure, cash holdings and firm value: a study of brazilian listed firms Estrutura de capital, liquidez de caixa e valor da empresa: estudo de empresas brasileiras cotadas em bolsa This study analyzed the relationship among capital structure, cash holdings and firm value for a sample of publicly traded Brazilian firms, through panel data regressions, employing the fixed-effects estimator. Initially, it was estimated regressions between capital structure (debt to total capital) and cash holdings (cash to assets), as well as between cash holdings and short and long-term debt. Next, it was applied a regression among firm value, capital structure and cash holdings. The results of this study suggested that debt, both short and long-termed, is negatively related to cash holdings, and that the level of cash holdings is also associated to a lower leverage. The study also presented indirect evidence that financially constrained firms hold more cash. Regarding to the impact of the capital structure on the firm value, short-term debt, longterm debt and the financial constraint had negative marginal effects on the firm value, suggesting a risk-averse behavior of investors in relation to debt. Cash holdings, instead, is valued as positive by investors, but up to an optimum threshold level. Further, the market capitalization is discounted with respect to cash holdings (inverted U-curve), in synergy with static trade-off theory of cash holdings. Neste estudo analisa-se a relação entre estrutura de capital, liquidez de caixa e valor da empresa para uma amostra de empresas brasileirascotadas em bolsa mediante o uso de regressões de dados em painel, empregando o estimador de efeitos fixos. Inicialmente foram estimadas regressões entre a estrutura de capital (dívida sobre capital total) e liquidez de caixa (caixa sobre ativos), e também entre liquidez de caixa e dívida de curto e longo prazo. A seguir, foi aplicado um modelo entre o valor da empresa, a estrutura de capital e a liquidez de caixa. Os resultados deste estudo sugerem uma associação negativa entre as dívidas de curto e longo prazo e a liquidez de caixa, e também uma associação entre o nível de liquidez de caixa e um grau de alavancagem inferior. Além disso, o estudo apresentou evidências indiretas de que as empresas com restrições financeiras mantêm mais recursos em caixa. Com relação ao impacto da estrutura de capital e da liquidez de caixa no valor da empresa, foram encontrados efeitos marginais negativos das dívidas de curto e longo prazo no valor de mercado das empresas, e o mesmo vale para as restrições financeiras, sugerindo o comportamento de aversão ao risco por parte dos investidores no que diz respeito à dívida. Por outro lado, a liquidez de caixa é valorizada como positiva pelos investidores, mas até um patamar ótimo. Além deste patamar, a capitalização de mercado é descontada com relação à liquidez de caixa (curva em U invertida), em sinergia com a static trade-off theoryda liquidez de caixa. Universidade de São Paulo. Faculdade de Economia, Administração, Contabilidade e Atuária2014-04-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfapplication/pdfhttps://www.revistas.usp.br/rcf/article/view/8074910.1590/S1519-70772014000100005Revista Contabilidade & Finanças; v. 25 n. 64 (2014); 46-59Revista Contabilidade & Finanças; Vol. 25 No. 64 (2014); 46-59Revista Contabilidade & Finanças; Vol. 25 Núm. 64 (2014); 46-591808-057X1519-7077reponame:Revista Contabilidade & Finanças (Online)instname:Universidade de São Paulo (USP)instacron:USPporenghttps://www.revistas.usp.br/rcf/article/view/80749/84399https://www.revistas.usp.br/rcf/article/view/80749/84400Copyright (c) 2018 Revista Contabilidade & Finançasinfo:eu-repo/semantics/openAccessLoncan, Tiago RodriguesCaldeira, João Frois2014-05-14T14:16:55Zoai:revistas.usp.br:article/80749Revistahttp://www.revistas.usp.br/rcf/indexPUBhttps://old.scielo.br/oai/scielo-oai.phprecont@usp.br||recont@usp.br1808-057X1519-7077opendoar:2014-05-14T14:16:55Revista Contabilidade & Finanças (Online) - Universidade de São Paulo (USP)false |
dc.title.none.fl_str_mv |
Capital structure, cash holdings and firm value: a study of brazilian listed firms Estrutura de capital, liquidez de caixa e valor da empresa: estudo de empresas brasileiras cotadas em bolsa |
title |
Capital structure, cash holdings and firm value: a study of brazilian listed firms |
spellingShingle |
Capital structure, cash holdings and firm value: a study of brazilian listed firms Loncan, Tiago Rodrigues |
title_short |
Capital structure, cash holdings and firm value: a study of brazilian listed firms |
title_full |
Capital structure, cash holdings and firm value: a study of brazilian listed firms |
title_fullStr |
Capital structure, cash holdings and firm value: a study of brazilian listed firms |
title_full_unstemmed |
Capital structure, cash holdings and firm value: a study of brazilian listed firms |
title_sort |
Capital structure, cash holdings and firm value: a study of brazilian listed firms |
author |
Loncan, Tiago Rodrigues |
author_facet |
Loncan, Tiago Rodrigues Caldeira, João Frois |
author_role |
author |
author2 |
Caldeira, João Frois |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Loncan, Tiago Rodrigues Caldeira, João Frois |
description |
This study analyzed the relationship among capital structure, cash holdings and firm value for a sample of publicly traded Brazilian firms, through panel data regressions, employing the fixed-effects estimator. Initially, it was estimated regressions between capital structure (debt to total capital) and cash holdings (cash to assets), as well as between cash holdings and short and long-term debt. Next, it was applied a regression among firm value, capital structure and cash holdings. The results of this study suggested that debt, both short and long-termed, is negatively related to cash holdings, and that the level of cash holdings is also associated to a lower leverage. The study also presented indirect evidence that financially constrained firms hold more cash. Regarding to the impact of the capital structure on the firm value, short-term debt, longterm debt and the financial constraint had negative marginal effects on the firm value, suggesting a risk-averse behavior of investors in relation to debt. Cash holdings, instead, is valued as positive by investors, but up to an optimum threshold level. Further, the market capitalization is discounted with respect to cash holdings (inverted U-curve), in synergy with static trade-off theory of cash holdings. |
publishDate |
2014 |
dc.date.none.fl_str_mv |
2014-04-01 |
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://www.revistas.usp.br/rcf/article/view/80749 10.1590/S1519-70772014000100005 |
url |
https://www.revistas.usp.br/rcf/article/view/80749 |
identifier_str_mv |
10.1590/S1519-70772014000100005 |
dc.language.iso.fl_str_mv |
por eng |
language |
por eng |
dc.relation.none.fl_str_mv |
https://www.revistas.usp.br/rcf/article/view/80749/84399 https://www.revistas.usp.br/rcf/article/view/80749/84400 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2018 Revista Contabilidade & Finanças info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2018 Revista Contabilidade & Finanças |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/pdf |
dc.publisher.none.fl_str_mv |
Universidade de São Paulo. Faculdade de Economia, Administração, Contabilidade e Atuária |
publisher.none.fl_str_mv |
Universidade de São Paulo. Faculdade de Economia, Administração, Contabilidade e Atuária |
dc.source.none.fl_str_mv |
Revista Contabilidade & Finanças; v. 25 n. 64 (2014); 46-59 Revista Contabilidade & Finanças; Vol. 25 No. 64 (2014); 46-59 Revista Contabilidade & Finanças; Vol. 25 Núm. 64 (2014); 46-59 1808-057X 1519-7077 reponame:Revista Contabilidade & Finanças (Online) instname:Universidade de São Paulo (USP) instacron:USP |
instname_str |
Universidade de São Paulo (USP) |
instacron_str |
USP |
institution |
USP |
reponame_str |
Revista Contabilidade & Finanças (Online) |
collection |
Revista Contabilidade & Finanças (Online) |
repository.name.fl_str_mv |
Revista Contabilidade & Finanças (Online) - Universidade de São Paulo (USP) |
repository.mail.fl_str_mv |
recont@usp.br||recont@usp.br |
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1787713776778215424 |