Name: LEONARDO VALTER BREGONCI
Publication date: 04/11/2020
Advisor:
Name |
Role |
|---|---|
| ANNOR DA SILVA JUNIOR | Co-advisor * |
| VAGNER ANTONIO MARQUES | Advisor * |
Examining board:
| Name |
Role |
|---|---|
| ELIZEU MARIA JUNIOR | Internal Examiner * |
| VAGNER ANTONIO MARQUES | Advisor * |
Summary: This work aims to analyze the effects of the different stages of the firm's life cycle on the capital
structure and the debt maturity of the Brazilian companies listed in [B]³. Although the corporate
finance literature presents relevant contributions on theories that predict the determinants of
financing decisions, most of the models tested are static and, therefore, the existence of a
deterministic dynamic component would deepen the understanding of the phenomenon
(Graham & Leary, 2011). In recent years, several studies have sought to understand the dynamic
impact of ECVs on firms' financial decisions, however, little is known about the influence of
this component in relation to debt choices (Habib & Hasan, 2019). Therefore, it is observed
that, when it comes to foreign works researching this relationship and gathering evidence about
the phenomenon, this debate continues to be little explored in the context of the national
corporate credit market. In this sense, the knowledge of the influence of a dynamic component
on the financing decisions of Brazilian companies was provided to the corporate finance
literature. For this purpose, secondary accounting and financial data were collected from 370
Brazilian non-financial companies with securities traded on [B]³ in the period 2010-2019 on a
quarterly basis and macroeconomic data from the same period. An analysis was carried out
using descriptive statistics, tests of difference between the means, correlation matrix and
regression with panel data. It was identified that the Growth stage positively affects the
Leverage, while, in the transition to the Shake-Out stage, the capacity to take on debts is
restricted. In addition, the Maturity stage demonstrated a positive effect on access to long-term
resources, however, it was found that as companies move towards Decline, the debt maturity
undergoes successive reductions in its structure. The empirical contributions of this work are
important for managers and creditors to know the importance of considering ECVs in their
decisions, adopting appropriate policies for each moment and mitigating uncertainties. For
analysts and investors, the considerations about the financial decisions of companies in each
ECV, can assist them in more robust analyzes of the expectations of that business. To the
regulators and competent entities, this work provides relevant information on the financing
pattern of Brazilian companies, helping them to establish appropriate credit policies for these
companies.
