<b>Comparative study of capital structure and financing characteristics of the Brazilian chemical industries</b> - doi: 10.4025/enfoque.v31i2.16145
Abstract
Considering the specific characteristics of the Brazilian market, as the presence of development banks and their impact on credit supply, this paper analyzes the capital structure and financing characteristics of the Brazilian chemical industries from 1999 to 2008. Through an empirical-analytical methodology, firstly, the financing structure of the Brazilian chemical companies is classified according to its currency (domestic or foreign) and its characteristics (market or specific credit lines). Then, the panel data analysis was used to investigate the relationship between the leverage ratio and variables outlined in classical literature. The main results of this research indicate that i) the domestic specific sources of financing and market foreign currency lines contributed significantly to the debt level of the Brazilian chemical companies, which had 24% of total debt, mostly long-term debt, and (ii) the variables size, asset tangibility, intangibility, profitability and risk are also significant in explaining the level of indebtedness of the companies analyzed.
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