Factors determining the structure of capital firms basic materials of Brazil

  • David Ferreira Lopes Santos UNESP - Univ. Estadual Paulista
  • Roberta Alvarez Martins Caixa Econômica Federal
  • Sérgio Rangel Fernandes Figueira UNESP - Universidade Estadual Paulista
  • Adhemar Sanches UNESP - Universidade Estadual Paulista
DOI: https://doi.org/10.4025/enfoque.v33i2.21339
Keywords: Capital structure, Profitability, Basic materials industry

Abstract

This article examines the capital structure of eight companies representing the Basic Materials Index of BM&FBOVESPA in the period 1994-2011. The controversy in the theoretical foundations developed this theme allows new approaches to be lifted in order to increase understanding of the factors that determine the levels of indebtedness of firms. This study opted for the use of financial indicators that represent three areas of interest (profitability, ability to pay and cash) in explaining loan short and long term. The methodological approach was quantitative, through regression analysis with panel data. The initial expectation is that the results met grip on the premises of Pecking Order Theory. Despite the methodological limitations, it was observed that the current liquidity variables, ROA and ROE determine borrowing long and short term, the latter being also influenced by the variables of the financial cycle and asset turnover. However, the degree of influence profitability is distinct for the dependent variables, which indicates the existence of agency conflicts between shareholders and creditors and preference for internal sources in financing assets.

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Author Biographies

David Ferreira Lopes Santos, UNESP - Univ. Estadual Paulista
Doutor em Administração de Empresas pela Universidade Presbiteriana Mackenzie. Atualmente é Professor Assistente Doutor da UNESP junto ao Departamento de Economia Rural da Faculdade de Ciências Agrárias e Veterinárias de Jaboticabal-SP.
Roberta Alvarez Martins, Caixa Econômica Federal
Graduada em Administração pela Universidade Estadual Paulista, atua como funcionária da Caixa Econômica Federal.
Sérgio Rangel Fernandes Figueira, UNESP - Universidade Estadual Paulista
Doutor em Economia Aplicada pela ESALQ/USP. Atualmente é Professor Assistente Doutor da UNESP junto ao Departamento de Economia Rural da Faculdade de Ciências Agrárias e Veterinárias de Jaboticabal-SP.
Adhemar Sanches, UNESP - Universidade Estadual Paulista
Livre Docente em Bioestatística pela UNESP, com Pós Doutorado pela University of Wisconsin (USA) e doutorado em Estatística pela USP. Atualmente é Professor Adjunto da UNESP junto ao Departamento de Ciências Exatas da Faculdade de Ciências Agrárias e Veterinárias de Jaboticabal-SP.
Published
2014-09-09
How to Cite
Santos, D. F. L., Martins, R. A., Figueira, S. R. F., & Sanches, A. (2014). Factors determining the structure of capital firms basic materials of Brazil. Enfoque: Reflexão Contábil, 33(2), 87-103. https://doi.org/10.4025/enfoque.v33i2.21339
Issue
Vol 33 No 2 (2014)
Section
Original Articles

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