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Capital structure management differences in Latin American and US firms after 2008 crisis

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  • Valcacer, Santiago

    () (Department of Management, University of Fortaleza, Fortaleza, Brazil)

  • José de Moura, Heber

    (Department of Management, Universidade de Brasilia, Brasilia, Brazil)

  • Lopes , David

    (Department of Economics, Administration and Education, São Paulo State University (UNESP), Jaboticabal, Brazil)

  • Amorim , Vinicius

    (Department of Management, Universidade de Brasilia, Brasilia, Brazil)

Abstract

Purpose – This paper aims to analyse the capital structure determining factors of Latin American and US corporations after the crisis of 2008, as a means of comparing theoretical assumptions and empirical results in markets of different efficiency levels. Design/methodology/approach – The study sample comprises 1,091 companies belonging to the six largest economies in Latin America plus the USA, in the years 2009 to 2013. The authors performed a regression with data from a balanced overview, which were obtained by using the criterion of minimum weighted square. Findings – The results demonstrated differences in determining factors of capital structure between companies from Latin America and from the USA. The pecking order theory was mostly observed in Latin American companies and the trade-off theory greater was closely aligned with US firms. Originality/value – This research brings new contributions to the issue, once the differences and determinative of the debt profile in companies from different economic contexts are compared.

Suggested Citation

  • Valcacer, Santiago & José de Moura, Heber & Lopes , David & Amorim , Vinicius, 2017. "Capital structure management differences in Latin American and US firms after 2008 crisis," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 22(42), pages 51-74.
  • Handle: RePEc:ris:joefas:0108
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    More about this item

    Keywords

    Information asymmetry; Trade-off; Indebtedness; Pecking order; Pooled regression;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • P34 - Economic Systems - - Socialist Institutions and Their Transitions - - - Finance

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