OPTION FOR DEBT ON THE CAPITAL STRUCTURE: EVIDENCE IN BRAZILIAN FIRMS

Authors

  • Ariane Firmeza Mota Universidade Federal do Ceará
  • Antônio Carlos Dias Coelho Universidade Federal do Ceará
  • Allan Pinheiro Holanda Faculdade Lourenço Filho

DOI:

https://doi.org/10.19094/contextus.v12i1.32174

Keywords:

Capital structure. Informational asymmetry costs. Debt. Financial deficit. Panel data.

Abstract

We investigated whether listed companies on Brazilian capital market sample of 476 firms in 2000-2012 period, financed by debt their financial deficits. We innovate on estimating the financial deficit following Shyam-Sunder and Myers (1999) and Frank and Goyal (2003) models. The association between financial deficit and debt increase was tested by panel data estimation; we hypothesized that occurred statistically significant preponderance in financing financial deficit by debt. The results point out to reject the hypothesis, since estimated coefficients indicated that just 26 %, in average, of financial deficit was funded by debt, after control time and industry effects. We infer that capital structure selection in sampled firms was not first picked as indicated by cost minimization of informational asymmetry theory.

Author Biographies

Ariane Firmeza Mota, Universidade Federal do Ceará

Graduada em Ciências Contábeis pela Universidade Federal do Ceará; Mestranda em Administração e Controladoria pelo Programa de Pós-Graduação em Administração e Controladoria da UFC.

Antônio Carlos Dias Coelho, Universidade Federal do Ceará

Doutor em Controladoria e Contabilidade pela Universidade de São Paulo; Professor Associado da Universidade Federal do Ceará.

Allan Pinheiro Holanda, Faculdade Lourenço Filho

Mestre em Administração e Controladoria pela Universidade Federal do Ceará; Professor da Faculdade Lourenço Filho e Faculdade Ateneu.

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Published

2014-01-31

How to Cite

Mota, A. F., Coelho, A. C. D., & Holanda, A. P. (2014). OPTION FOR DEBT ON THE CAPITAL STRUCTURE: EVIDENCE IN BRAZILIAN FIRMS. Contextus - Contemporary Journal of Economics and Management, 12(1), 138–165. https://doi.org/10.19094/contextus.v12i1.32174

Issue

Vol. 12 No. 1: jan/abr 2014

Section

Articles

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