Taxa de juros e prêmio de risco: investigando a hipótese Bresser-Nakano para a economia brasileira, 1995-2005

Marques, André M.; Fochezatto, Adelar

doi:10.1590/s1415-98482007000200007

Cited by 8 publications

(4 citation statements)

References 25 publications

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“…High benefits of control (Dyck and Zingales, 2004) and high ownership concentration (La Porta et al, 1998;L opez Iturriaga and Cris ostomo, 2010) remain significant characteristics of the Brazilian market. In addition, institutional framework and capital market advances have not been sufficient to reduce the high interest rates in Brazil compared to European, North American, or even other non-developed countries (Marques and Fochezatto, 2007;Oliveira and Carvalho, 2007;Omar, 2008) [2].…”

Section: The Brazilian Market Financial Constraints and Hypothesesmentioning

confidence: 99%

Financial constraints for investment in Brazil

Crisóstomo

López‐Iturriaga

González

2014

International Journal of Managerial Finance

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Purpose – The purpose of this paper is to verify the existence of financial constraints for investment in Brazil, an emerging market with growing international visibility. Design/methodology/approach – Using panel data methodology and generalized method of moments (GMM), the paper estimates dynamic investment models based on the Euler equation and Tobin's q for a panel data set of 199 Brazilian non-financial firms for the time period 1995-2006. Findings – Results show that Brazilian firms face financial constraints since their investments depend on internally generated funds. Results are robust to different investment models based on the Euler equation, also controlling for growth opportunities. Significant investment-cash flow sensitivity has been found for the whole sample of firms. Subsamples of firms considered as under financial constraints, according to dividend payout and equity issuance policies, have higher investment-cash flow sensitivity. Investment-cash flow sensitivity of financially constrained firms in Brazil is higher than that in the UK and in Romania, a transition economy. Originality/value – The results extend empirical evidence of financial constraints in Brazil. The paper contributes to the literature by assessing the firms’ financial constraint status on an annual basis, and by using panel data methodology and GMM to estimate dynamic models of investment that take into account the proposals of the hierarchy of finance theory. In addition, the paper controls for growth opportunities. Capital market imperfections affect firm investment in Brazil and such effects are even stronger for financially constrained firms.

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Section: The Brazilian Market Financial Constraints and Hypothesesmentioning

confidence: 99%

Financial constraints for investment in Brazil

Crisóstomo

López‐Iturriaga

González

2014

International Journal of Managerial Finance

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“…Protection of minority shareholders and creditors continue to be inadequate, and high benefits of control (Dyck & Zingales, 2004) and high ownership concentration (La Porta, López-de-Silanes, Shleifer, & Vishny, 1998;López-Iturriaga & Crisóstomo, 2010) remain important characteristics of Brazilian market. In addition, institutional framework and capital market advances have not been sufficient to reduce the high interest rates in Brazil, compared to European, North American, or even other non-developed countries (Marques & Fochezatto, 2007;Oliveira & Carvalho, 2007;Omar, 2008)…”

Section: Brazilian Market Financial Constraints and Hypothesesmentioning

confidence: 99%

“…[2]. Marques & Fochezatto (2007) present data about interest rates relative to year 2005 in different undeveloped countries. Brazil has the highest interest rates (19.24%), followed by Russia and Venezuela with 13% and 12.7%, respectively.…”

Section: Notesmentioning

confidence: 99%

Firm Size Matters for Financial Constraints: Evidence from Brazil

Crisóstomo¹,

López‐Iturriaga²,

González³

2012

S&G

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The purpose of this work is to verify the existence of financial constraints for investment in Brazil and the specific firm size effect on it. Dynamic investment models are estimated for a panel dataset of 289 Brazilian nonfinancial firms for the time period 1995-2006. Results show that Brazilian firms face financial constraints since their investment depend on internally generated funds. Firm size has shown to be, effectively, an important determinant of it. Investment of smaller firms is more sensitive to cash flow than that of larger ones. At the firm level, our findings suggest the need for further developments on information disclosure as a way to mitigate asymmetric information problem. At the policy level, additional advance in the institutional environment might also be important for minimizing financial constraints for Brazilian firms.

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“…Lopes also pointed out the strong influence of tax rules on the quality of Brazilian financial reporting statements. In addition, advances in the institutional framework and capital markets have not been enough to reign in high interest rates, as noted by Oliveira and Carvalho (2007), Marques and Fochezatto (2007), and Omar (2008). Weak contract enforcement and high interest rates are important factors that may contribute to financial constraints.…”

Section: Some Notes On the Brazilian Marketmentioning

confidence: 99%

Financial Constraints for Innovation in Brazil

Crisóstomo

López‐Iturriaga

González

2011

Latin American Business Review

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This paper analyzes the presence of financial constraints for investment in innovation in Brazil. Dynamic investment models are estimated for a panel dataset of 206 Brazilian non-financial firms in the period [1995][1996][1997][1998][1999][2000][2001][2002][2003][2004][2005][2006]. Results show that innovation of Brazilian firms is subject to financial constraints in line with previous international evidence. Innovation of Brazilian firms is adversely affected by leverage and also depends on internally generated funds. The models presented incorporate relevant firm characteristics for financial constraints. Our findings suggest the need for further advances at micro-and macroeconomic levels in Brazil to mitigate the observed financial constraints.RESUMEN. Este estudio analiza la existencia de restricciones que afectan las inversiones en el campo de la innovacio´n en Brasil. Los modelos de inversio´n dinámica fueron estimados para datos de panel que abarcaron 206 empresas no financieras brasileñas a lo largo del perı´odo 1995-2006. Los resultados muestran que, en Brasil, la innovacio´n de las empresas esta´sujeta a restricciones financieras, alineadas a pruebas internacionales ya existentes. La innovacio´n de una empresa brasileña se ve adversamente afectada por el apalancamiento dependiendo, además, tambie´n de los fondos que se generen internamente. Los modelos de estimacio´n incorporan caracterı´sticas importantes de la empresa inherentes a su restriccio´n financiera. Nuestras deducciones sugieren que, para 165 atenuar las restricciones financieras, es imprescindible que Brasil logre progresar aún más en los niveles micro y macroecono´micos.RESUMO. Este artigo analisa a presença de restrições financeiras para o investimento em inovação no Brasil. Modelos dinâmicos de investimento são estimados para um painel de dados composto por 206 empresas brasileiras não-financeiras no perı´odo de 1995-2006. Os resultados mostram que a inovação das empresas brasileiras está sujeita a restrições financeiras em conformidade com a evideˆncia internacional anterior. Inovação das empresas brasileiras e´afetada inversamente pelo endividamento e tambe´m depende de recursos gerados internamente. Os modelos apresentados incorporam caracterı´sticas relevantes da empresa relativamente a restrições financeiras. Nossos resultados sugerem a necessidade de avanço em mudanças adicionais nos nı´veis micro e macroeconômicos no Brasil com vistas a atenuar as restrições financeiras observadas.

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Taxa de juros e prêmio de risco: investigando a hipótese Bresser-Nakano para a economia brasileira, 1995-2005

Cited by 8 publications

References 25 publications

Financial constraints for investment in Brazil

Financial constraints for investment in Brazil

Firm Size Matters for Financial Constraints: Evidence from Brazil

Financial Constraints for Innovation in Brazil

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