Abstract
Objective: This study aimed to identify, per sector, the impact caused by the Covid-19 pandemic on the relationship between Brazilian companies listed on B3 capital structure and performance.Method: Financial Statements data from 2019 and 2020 of 100 Brazilian companies that were listed in B3 were analyzed. After collecting data from the Economática® database, indebtedness, performance, and control variables were calculated.Originality: The results found may be useful for future studies on the capital structure, helping to enrich the Pecking Order Theory. The study intends to attract the interest of managers who seek to expand their knowledge on the subject.Results: The findings show that the Covid-19 pandemic negatively impacted all companies in the sample, increasing their indebtedness and, therefore, decreasing their performance, since the correlation between indebtedness and performance was negative. It was found that in all sectors the indebtedness variables showed a negative correlation with the measured performance variables.Contributions: This study contributes to the expansion of work on capital structure, especially as it presents results of Brazilian companies during Covid-19 period. Furthermore, it is possible to ratify Pecking Order Theory assumptions, or in other words managers adjust their resource preference to finance their firms.
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