Abstract
ABSTRACT Purpose: The purpose of this study is to verify the financing decisions by Brazilian companies in the financial crises of 2002, 2008 and 2015, and to identify the impacts of these crises, as well as the influence of the funding sources - banking, subsidized sources and capital markets - on the leverage and maturity of companies' debts in these periods. Originality/value: Crises establish opportunities for the study of determining factors and their impacts on companies. There is no empirical evidence on the impacts of crises on the capital structure of Brazilian companies taking into account the comparison between the crises of 2002, 2008 and 2015, which motivated the present study. Design/methodology/approach: We performed descriptive analyzes and estimated regressions by panel data. Findings: The results showed a statistically positive relationship between financial crises and corporate leverage, as well as short and long-term debt. With regard to leverage, banking resources, resources from capital and subsidized markets showed a statistically positive relationship with the level of leverage of companies only in the 2008 crisis. Considering the maturity of debts, the 2002 crisis was an important determinant for companies' short-term debt decisions, in view of the predominant participation of banking resources at that time. Financing sources were important in determining companies' long-term indebtedness in the 2008 crisis.
Highlights
Considered the theoretical framework of the modern finance theory, the 1958 study by Modigliani and Miller led from on to raise several studies and arguments involving the capital structure of companies, which consists of the combination of resources that finance them
There is no empirical evidence on the impacts of crises on the capital structure of Brazilian companies taking into account the comparison between the crises of 2002, 2008 and 2015, which motivated the present study
The results showed a statistically positive relationship between financial crises and corporate leverage, as well as short and long-term debt
Summary
Considered the theoretical framework of the modern finance theory, the 1958 study by Modigliani and Miller led from on to raise several studies and arguments involving the capital structure of companies, which consists of the combination of resources that finance them. Lima, Assaf Neto, Perera, and Silva et al(2011) highlighted the increase in corporate debt in the 2008 crisis, whereas Carvalhal and Leal (2013) and Silva, Santos, Perobelli, and Nakamura (2016) showed evidence of the increased share of long-term debt in the crisis In this sense, three relevant financial crises have marked the Brazilian context since the beginning of the 2000s, which occurred in the years 2002, 2008 and 2015. In addition to the determinants normally used in empirical studies to explain capital structure, such as tangibility, profitability, size and growth opportunities, the study advances in the inclusion of financing sources used in times of financial and economic instability, providing evidence of how crises can affect the economy in different ways, and may depend on the development of credit markets at any given time
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