The interdependence of corporate decisions about investment and capital structure in Latin America

  • Santiago Valcacer Rodrigues UNIFOR - Universidade de Fortaleza
  • Elton Eustáquio Casagrande UNESP - Univ. Estadual Paulista
  • David Ferreira Lopes Santos UNESP - Univ. Estadual Paulista http://orcid.org/0000-0003-3890-6417
DOI: https://doi.org/10.4025/enfoque.v37i1.34145

Abstract

This study analyzes the interdependence of investment decisions and debt of Latin American companies, from an exploratory model. The development of investment and capital structure theories occurred dissociated form since the assumptions established by Modigliani and Miller (1958). The methodological approach is exploratory and descriptive with quantitative perspective. The sample includes annual information of 425 companies between 2010 and 2013 (1,700 observations) based in six major countries in the region (Argentina, Brazil, Chile, Colombia, Mexico and Peru). The empirical model is based onStructural Equation Longitudinal as a strategy to measure the constructs of investment and debt. Despite the limitations of the model, the results show that the decisions of each of the dimensions of investment and capital structure are interdependent on each period of time and have an effect on future decisions on these dimensions. Unfold theoretical and professional implications for the importance of integrated understanding and study of applications and structure of financing sources of firms and the contingent conditions in which they are made.

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Author Biographies

Santiago Valcacer Rodrigues, UNIFOR - Universidade de Fortaleza
Mestre em Administração de Empresas pela Universidade de Fortaleza.
Elton Eustáquio Casagrande, UNESP - Univ. Estadual Paulista
Pós Doutor em Economia pela UFRJ, Doutor em Economia de Empresas pela Fundação Getúlio Vargas-SP. Atualmente é Professor Assistente Doutor da UNESP junto ao Departamento de Economia da Faculdade de Ciências e Letras de Araraquara-SP.
David Ferreira Lopes Santos, UNESP - Univ. Estadual Paulista
Pós Doutor e Doutor em Administração de Empresas pela Universidade Presbiteriana Mackenzie. Atualmente é Professor Assistente Doutor da UNESP junto ao Departamento de Economia, Administração e Educação da Faculdade de Ciências Agrárias e Veterinárias de Jaboticabal-SP.
Published
2018-01-01
How to Cite
Rodrigues, S. V., Casagrande, E. E., & Santos, D. F. L. (2018). The interdependence of corporate decisions about investment and capital structure in Latin America. Enfoque: Reflexão Contábil, 37(1), 01-20. https://doi.org/10.4025/enfoque.v37i1.34145
Issue
Vol 37 No 1 (2018)
Section
Original Articles

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