Are leverage and debt maturity complements or substitutes? Evidence from Latin America

Terra, Paulo Renato Soares

doi:10.1590/s1678-69712009000600003

Cited by 13 publications

(18 citation statements)

References 11 publications

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“…Capital structure studies with Brazilian companies evaluated them in in order to verify the impact of the characteristics of these companies on leverage and debt maturity (Albanez & Valle, 2009;Terra, 2009;Nakamura, Jucá & Bastos, 2011;Correa, Basso & Nakamura, 2013). Companies were evaluated by incorporating institutional issues (Bastos, Nakamura & Basso, 2009;Albanez, Valle & Corrar, 2012;Bogéa Sobrinho, Sheng & Lora, 2012) and issues related to providers Póvoa & Nakamura, 2014).…”

Section: Introductionmentioning

confidence: 99%

Estrutura de capital: o papel das fontes de financiamento nas quais companhias abertas brasileiras se baseiam

Junior

Valle

2015

Rev. contab. finanç.

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This study evaluated the capital structure of Brazilian listed companies, within the period from 2005 to 2012, verifying the role of the funding sources on which such companies are based. To do this, the debt ratio in 3 different sources was evaluated: financial institutions, capital market, and sources with subsidized interest rates, the latter representing an institutional factor of the Brazilian economy. A sample of 95 companies was used, out of the 150 largest companies listed on the São Paulo Securities, Commodities, and Futures Exchange (BM&FBOVESPA). By using models with panel data, the results show that the funding sources impact on the companies' capital structure formation, influencing both in leverage and in debts maturity. Regarding leverage, companies that have a higher proportion of their funds raised in the capital market are more leveraged. The same is not true for companies that have a higher proportion of subsidized resources. Regarding debts maturity, resources of different maturities are obtained from different sources: the resources of lower maturities are obtained from financial institutions and the resources of higher maturities are obtained from the capital market and sources with subsidized interest rates -i.e. the Brazilian National Bank for Economic and Social Development (BNDES). Comparing the resources from the capital market to subsidized resources, it is concluded that the former have higher maturity. Such a result may be explained by the growth of the Brazilian capital market in recent years, since 2009, so that companies have been based on the capital market for their funding with higher maturity and on subsidized resources, from BNDES, for their funding with intermediate maturities.

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Section: Introductionmentioning

confidence: 99%

Estrutura de capital: o papel das fontes de financiamento nas quais companhias abertas brasileiras se baseiam

Junior

Valle

2015

Rev. contab. finanç.

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“…Although there are many studies on debt maturity, the focus has been on the determinants of debt maturity, and only a few research studies have examined its direct effect on firm value (Antoniou, Guney, & Paudyal, 2006;Berlin, 2006;Terra, 2009). Therefore, this research will provide a significant and valuable contribution to the literature.…”

Section: Debt Maturitymentioning

confidence: 99%

The Effects of Corporate Financing Decisions on Firm Value in Bursa Malaysia

Chaleeda¹,

Islam²,

Ahmad³

et al. 2019

IJEF

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The primary objective of shareholders and financial managers is generally stated to be the maximization of shareholders' wealth by increasing the firm value. This research was undertaken to investigate the effect of corporate financing decisions on firm value. The research has been carried out using the panel data procedure for a sample of 256 firms from 9 sectors listed on Bursa Malaysia during the period 2000-2015. The study uses Tobin's Q representing firm value for the dependent variable. The corporate financing was measured by leverage (short-term debt to total assets, long-term debt to total assets, total debt to total assets and total debt to total equity) and debt maturity (long-term debt to total debt). Short-term debt to total assets and long-term debt to total assets has a positive significant relationship to firm value. This finding is consistent with the view that leverage and dividends mitigate agency costs of free cash flow problems, therefore, increasing firm value. Total debt to total assets affects firm value negatively. This proves that although there are benefits of debts, there is also the cost of debts. The cost of debt financing arises from the increase in the probability of bankruptcy. Firm value does not depend on the length of debt maturity.

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“…Tabela 1 -Estudos com fatores da firma e do setor: Barclay e Smith (1995), Guedes e Opler (1996) .......................................................................................................................................... Tabela 2 -Estudos com fatores da firma e do setor: Stohs e Mauer (1996), Ozkan (2000) ...... Tabela 3 -Estudos com fatores da firma e setor: Scherr e Hulburt (2001), Antoniou et al (2006) ..................................................................................................................................................... Tabela 4 -Estudos com fatores da firma e do setor: Terra (2009), Terra (2011) Tabela 32 -Impactos indiretos com inclusão de taxa real de juros x oportunidades REFERÊNCIAS 117…”

Section: Lista De Tabelasunclassified

“…A evolução teórica sobre estrutura de capital caminhou na direção de que esta pode variar ao longo do tempo, conforme o trabalho de Korajczyc e Levy (2003) sugere, indicando que exista um ponto ótimo para a estrutura do capital da empresa. Nessa mesma direção, Ozkan (2000), Antoniou et al (2006), González e González (2008), Terra (2009), Kayo e Kimura (2011) e Terra (2011) e Kirch e Terra (2012) advogam em seus trabalhos que para decisões acerca de estrutura de capital e de maturidade de endividamento existe um componente dinâmico.…”

Section: Situação Problemaunclassified

“…São muitos os trabalhos que se dedicam ao estudo de fatores específicos da firma e de sobre fatores setoriais, dentre os quais, estão o de Barclay e Smith (1995), Guedes e Opler (1996), Stohs e Mauer (1996), Ozkan (2000), Scherr e Hulburt (2001), Antoniou et al (2006), Terra (2009), Terra (2011) e Martins e Terra (2014).…”

Section: Estudos Que Apresentam Fatores Específicos Da Firma E Fatoreunclassified

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Determinantes de maturidade de endividamento - análise crosscountry para Brasil e Portugal

Silva¹

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This research intends to present a study on the debt maturity of Brazilian and Portuguese companies. To this end, the sample is composed of listed and unlisted companies from both countries. In order to capture the behavior regarding the variables that affect debt maturity for companies of all sizes, it's proceeded the division of unlisted companies into two groups of equal size, according to the revenue for each year considered. In this regard, the time interval considered covers the years 2008 to 2017, thus allowing us to understand the behavior of companies on the topic from the period of financial crisis to the subsequent years. The operationalization of the work happens with the use of the hierarchical linear modeling. Its adoption allows some methodological advantages in that it is possible to investigate the influence of different levels of factors on the variance of debt maturity. In addition, it also allows variables to be nested at different levels where-another advantage of the model-the influence of higher levels on lower levels. To carry out the research, with the support of the literature on the subject, five groups of variables that can impact firms' debt maturity are built and then nesting them at three levels in the model. The next step presents the use of the factor analysis technique in order to constitute factors that represent the variables concerning the financial development and the quality of the national institutions of both countries. The results allow to affirm that the variations of the characteristics of the companies and those that happen over time are the major influencers of changes in the firms' debt maturity. Moreover, it is clear that disparities between the two countries, such as the real interest rate practiced in each place, significantly influence the debt maturity in Brazil and Portugal, in the first case, with higher rates, was measured. debt maturity lower than in Portuguese companies. The same can be said for other variables, such as the level of financial development and liquidity, as well as the indirect impact perceived on variables such as growth opportunity and size.

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Are leverage and debt maturity complements or substitutes? Evidence from Latin America

Cited by 13 publications

References 11 publications

Estrutura de capital: o papel das fontes de financiamento nas quais companhias abertas brasileiras se baseiam

Estrutura de capital: o papel das fontes de financiamento nas quais companhias abertas brasileiras se baseiam

The Effects of Corporate Financing Decisions on Firm Value in Bursa Malaysia

Determinantes de maturidade de endividamento - análise crosscountry para Brasil e Portugal

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