Advanced Search
MyIDEAS: Login

Formação de preços e financiamento empresarial entre os anos 80 e 90 na economia brasileira

Contents:

Author Info

  • Pereira, Thiago Rabelo
Registered author(s):

    Abstract

    The paper focuses on the existing connection between price formation decisions and the standards of financial adjustment of the Brazilian big industrial companies. It discusses the impact of the transition from the eighties to the nineties in corporate funding standards. The link between the mark up changes and funding decisions is underlined. The eighties was marked by a situation of high levels of industrial protection, a rigid external credit constraint and high inflation. The key environmental changes during the nineties, by contrast, can, in short, be described as consequences of the reconnection of the main domestic credit takers in the international financial markets, the drastic drop on the level of protection given to domestic producers and, starting from 1994, the stabilization process. The defensive behavior of firms under the high inflation regime and closed economy materialized as an upper bias in price decisions. The perceived risk of capital loss in a highly unstable environment pushed up the industrial mark-ups. The upper bias in the mark up decision under high inflation was linked to a defensive tendency of companies to move away from any kind of financial debt in the liability side of balance sheets ? decreasing the leverage standards throughout the eighties. During the 1990/93 period, the reinsertion in international capital flows was combined with the reduction in protection levels. That situation slowed down the high inflation defensive tendency to push up mark-ups. After stabilization, some of the mechanisms that shaped the defensive behavior of firms were deactivated. The combination of open economy, high volumes of external credit, stabilization and real exchange rate appreciation put a restrictive pressure in the levels of industrial mark-ups and changed the disposition of firms to assume different forms of debt ? slowly reshaping the composition of the liability side of balance sheets.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.eco.unicamp.br/docprod/downarq.php?id=719&tp=a
    Download Restriction: no

    Bibliographic Info

    Article provided by Instituto de Economia, Universidade Estadual de Campinas (UNICAMP) in its journal Revista Economia e Sociedade.

    Volume (Year): 14 (2000)
    Issue (Month): (January)
    Pages: 38

    as in new window
    Handle: RePEc:euc:ancoec:v:14:y:2000:p:89-126

    Contact details of provider:
    Postal: Caixa Postal: 6135 - CEP 13083-970, Campinas - SP - Brasil
    Phone: (019) 788-5726
    Fax: (019) 289-1512
    Web page: http://www.eco.unicamp.br/
    More information through EDIRC

    Related research

    Keywords: Price formation; Mark-up; Finance; Funding; High inflation regime.;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:euc:ancoec:v:14:y:2000:p:89-126. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antonio Carlos Macedo e Silva).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.