Testing the Pecking Order Theory of Capital Structure in Brazilian Firms

Medeiros, Otávio Ribeiro de; Daher, Cecílio Elias

doi:10.2139/ssrn.868466

Cited by 4 publications

(3 citation statements)

References 11 publications

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“…In summary, the results among the subsectors were relatively homogeneous, with there being little divergence between the signs of the economic coefficients among the subsectors for each macroeconomic variable. The POT predominated for three of the six variables, showing an indication of a preference for using internal capital for the sectors of the Brazilian market, thus corroborating the studies of Medeiros and Daher (2008), , Bernardo et al (2009), and Martins and Terra (2014). Although, in general, the macroeconomic variables showed importance, the specific variables showed greater explanatory power for determining the level of debt.…”

Section: Resultssupporting

confidence: 82%

“…An increase in interest rates incentivizes the issuance of shares due to debt being more expensive, which, from a POT perspective, presupposes a direct negative relationship. In light of the TOT, an increase in interest rates causes a reduction in the company's value and also its longterm debts, however the former consequence occurs in a more accentuated way compared to the latter, which tends to raise the proportion of third-party capital in the capital structure; that is, there is a positive though indirect relationship (Frank & Goyal, 2003;Medeiros & Daher, 2008).…”

Section: Expected Research Resultsmentioning

confidence: 99%

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The influence of recession and macroeconomic variables on sectorial capital structure

Cardoso

Pinheiro²

2020

Rev. contab. finanç.

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The aim of this paper is to analyze the influence of the recent recession and of macroeconomic variables over the indebtedness in Brazilian industry sectors. The gap derives from the preference for investigating the reaction of capital structure according to economic sectors. However, it has to be considered that industry sectors react differently to variations in the economic context, since they have different optimal points of capital structure composition. The relevance of the chosen topic lies in carrying out a sectorial analysis of the effect of recession and of macroeconomic variables on capital structure composition, identifying the most sensitive sectors. It is also relevant in terms of being based on classical financial theories applied to the current context, in order to help predict the proportion of debt given fluctuations in a set of macroeconomic variables. Standing out among the main contributions of this article are the analysis of the level of indebtedness of Brazilian companies given the occurrence of recession and variations in the macroeconomy, identifying sectors that are most exposed to modifying their capital structure due to these factors. Six research hypotheses were formulated and tested using multiple linear regression, with two-stage fixed effects based on panel data collected from 211 companies, classified into six sectors, with data relating to the first quarter of 2010 up to the first quarter of 2018. The results revealed that the recent Brazilian recession was relevant for the capital structure of the sectors studied, with inflation only being significant for the health sector. The level of indebtedness of the basic materials sector was shown to be the most dependent on economic fluctuations and that of telephony and utilities was shown to be the least dependent. In addition, it was verified that the company-specific variables have greater relevance in determining capital structure compared to the macroeconomic ones.

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Section: Resultssupporting

confidence: 82%

Section: Expected Research Resultsmentioning

confidence: 99%

The influence of recession and macroeconomic variables on sectorial capital structure

Cardoso

Pinheiro²

2020

Rev. contab. finanç.

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“…Penelitian Otavio et al (2005) menguji jika teori yang dikenal sebagai pecking order theory memberikan penjelasan empiris untuk struktur modal perusahaan Brasil. Menurut teori ini, struktur modal akan dihasilkan dari hirarki keputusan keuangan dimana sumber daya internal akan menjadi prioritas utama, diikuti oleh masalah utang dan isu-isu ekuitas.…”

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Teori Pecking Order: Pilih Utang atau Ekuitas?

Yasmi¹,

Novita²,

Usman³

2023

Yum

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AbstrakPenelitian ini bertujuan untuk mengetahui seberapa jauh profitabilitas, likuiditas, dan pertumbuhan perusahaan berpengaruh terhadap struktur modal perusahaan publik di Indonesia. Menggunakan alat uji statistik dapat diketahui variabel manakah yang paling mempengaruhi oleh struktur modal perusahaan publik di Indonesia. Sampel yang digunakan adalah 173 perusahaan dengan menggunakan metode disproportionate stratified random sampling. Metode analisis yang digunakan yaitu analisis regresi menggunakan SPSS. Hasil penelitian menemukan bahwa (1) profitabilitas berpengaruh terhadap struktur modal, (2) likuiditas berpengaruh terhadap struktur modal, (3) pertumbuhan perusahaan tidak berpengaruh terhadap struktur modal. Kata Kunci: teori pecking order, profitabilitas, likuiditas, pertumbuhan. AbstractThis study aims to determine the extent of profitability, liquidity, and growth (growth) companies give effect to the capital structure of public companies in Indonesia. By using a statistical test is expected to be known which variables most affect the capital structure of public companies in Indonesia. The sample used is 173 (one hundred and seventy three) companies using disproportionate stratified random sampling method. The analytical method used is regression analysis using SPSS. The results found that (1) the profitability give significant effect on the capital structure so that the hypothesis is accepted, (2) liquidity give significant effect on the capital structure so that the hypothesis is accepted, (3) the company's growth no significant effect on the capital structure so that the hypothesis is not accepted. Keywords: pecking order theory, profitability, liquidity, growth

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The rise of public-private partnerships in China

Zhao

2018

Journal of Chinese Governance

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Testing the Pecking Order Theory of Capital Structure in Brazilian Firms

Cited by 4 publications

References 11 publications

The influence of recession and macroeconomic variables on sectorial capital structure

The influence of recession and macroeconomic variables on sectorial capital structure

Teori Pecking Order: Pilih Utang atau Ekuitas?

The rise of public-private partnerships in China

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