The effects of debt and financial distress on the investment behavior of brazilian non-financial companies listed on B3
This study investigated the impact of financial restrictions on the relationship between investment behavior and debt decisions of Brazilian companies listed on B3. The authors performed a panel data regression in a sample of 536 listed companies from 2010 to 2017. The Company size, short and long-t...
| Autores: | , , |
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| Tipo de recurso: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2021 |
| País: | Brasil |
| Institución: | Centro Universitário de Belo Horizonte (UNIBH) |
| Repositorio: | Revista e-xacta |
| Idioma: | español |
| OAI Identifier: | oai:ojs.periodicos.uninove.br:article/13806 |
| Acceso en línea: | https://periodicos.uninove.br/exacta/article/view/13806 |
| Access Level: | acceso abierto |
| Palabra clave: | Capital Structure Investment Behavior Financial Distress. Estructura de capital Comportamiento de inversión Restricción financiera. |
| Sumario: | This study investigated the impact of financial restrictions on the relationship between investment behavior and debt decisions of Brazilian companies listed on B3. The authors performed a panel data regression in a sample of 536 listed companies from 2010 to 2017. The Company size, short and long-term bank debt and the ownership structure were considered financial constraints metrics. Empirical evidences show that in Brazil, large and private companies have a higher proportion of assets, have fewer restrictions on borrowing, and even so, they decide on their investments based on their growth opportunity and their ability to generate cash flow. Meanwhile, small companies with small long-term bank debt and state-owned firms face more financial constraints; consequently, they only invest based on the generated cash flows. |
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