Capital structure and staff salary: empirical evidence in Brazil

Duk Young Choi, Richard Saito and Vinicius Augusto Brunassi Silva

RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), 2015, vol. 19, issue 2, 249-269

Abstract: This paper analyzes whether the higher the company's financial leverage, the higher the salaries demanded by staff for the embedded financial distress risk. By applying Berk, Stanton and Zechner's (2010) model, we use a2SLS for a sample of 250 non-financial companies listed onBOVESPAfrom 2007 to 2009. Indeed, we find that for each additional 1% of financial leverage, the staff remunerations increase by 0.26%, controlling for Chief Executive Officer (CEO) profile.

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://rac.anpad.org.br/index.php/rac/article/view/1103/1099 (text/html)
https://rac.anpad.org.br/index.php/rac/article/download/1103/1099 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:abg:anprac:v:19:y:2015:i:2:1103

Access Statistics for this article

RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration) is currently edited by Marcelo de Souza Bispo

More articles in RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration) from ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração
Bibliographic data for series maintained by Information Technology of ANPAD ().