Country Factors and Dynamic Capital Structure in Latin American Firms

Leonel Rodrigues Bogéa Sobrinho (), Hsia Hua Sheng () and Mayra Ivanoff Lora ()
Additional contact information
Leonel Rodrigues Bogéa Sobrinho: Fundação Getulio Vargas - São Paulo School of Economics (FGV-EESP)
Hsia Hua Sheng: Fundação Getulio Vargas - São Paulo Business Administration School (FGV-EAESP)
Mayra Ivanoff Lora: Fundação Getulio Vargas - São Paulo Business Administration School (FGV-EAESP)

Brazilian Review of Finance, 2012, vol. 10, issue 2, 267-284

Abstract: We develop partial adjustment and duration models to test the relevance of country idiosyncrasies in determining the capital structure of publicly-traded Brazilian, Chilean and Mexican firms. Our data panel, ranging from the 4th quarter of 1996 to the 2nd quarter of 2010, consists of 4403 firm-quarter observations pertaining to 139 firms. Our findings suggest that capital structure dynamics vary by country, local idiosyncrasies are key determinants of firms’ leverage among Brazilian, Chilean and Mexican firms, and that factors other than firm-specific characteristics influence the financing decision processes of Latin American managers

Keywords: capital structure; adjustment costs; dynamic models; country-specific factors; firm-specific factors (search for similar items in EconPapers)
JEL-codes: C33 C34 C41 G32 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://bibliotecadigital.fgv.br/ojs/index.php/rbfin/article/download/3623/2691 (application/pdf)
http://bibliotecadigital.fgv.br/ojs/index.php/rbfin/article/view/3623 (text/html)

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:brf:journl:v:10:y:2012:i:2:p:267-284

Access Statistics for this article

Brazilian Review of Finance is currently edited by Marcio Laurini

More articles in Brazilian Review of Finance from Brazilian Society of Finance
Bibliographic data for series maintained by Marcio Laurini ().