The effects of privatization on the capital structure of Brazilian firms
AbstractThis article investigates the effects of privatization under Brazil's National Privatization Program (PND) during the 1990s on companies' capital structure. Our model suggests that privatized firms increased their market leverage by 10--14% on average relative to the level before privatization. The effect of privatization on book leverage level was 8--12% on average. These results indicate a positive effect of the privatization process on the levels of leverage of privatized firms, as predicted by signalling and agency theories.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 19 (2012)
Issue (Month): 12 (August)
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Web page: http://www.tandfonline.com/RAEL20
Other versions of this item:
- Cinthia Barbosa & Cristiano Machado Costa & Bruno Funchal, 2011. "The effects of privatizationon the capital structure of Brazilian firms," Fucape Working Papers 32, Fucape Business School.
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