Determinants of Leverage Maturity Structure of Uruguayan Non-financial Firms

Miguel Mello Costa ()

No 2018006, Documentos de trabajo from Banco Central del Uruguay

Abstract: The purpose of this paper is to study the decision of Uruguayan non-financial firms regarding the temporal dimension of the financing structure, this is, to characterize the temporal structure of Uruguayan nonfinancial firm’s leverage. The paper mainly, analyze the interaction of long-term financial leverage with the other type of external financing of the firm and with the use of own capital. I used a unique panel database that is a merge of the Annual Economic Activity Survey and the Credit Risk Center managed by the Central Bank of Uruguay. The sample covers the period 2011-2014, for this period there is complete balance sheet information. The different external financing options for the firms are complementary to the long-term leverage. In turn, the use of the firm’s own capital is a substitute for long-term leverage. On the side of the demand for long-term credit, firms with higher profitability prefer to finance themselves with their own capital and those with lower profitability turn to external financing to the firm.

Keywords: Financial structure; leverage; indebtedness; panel data; corporate finance; Estructura financiera; apalancamiento financiero; endeudamiento; datos de panel; finanzas corporativas (search for similar items in EconPapers)
JEL-codes: G30 G32 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2018
New Economics Papers: this item is included in nep-cfn
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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