EconPapers    
Economics at your fingertips  
 

Credit Rating and Capital Structure: Evidence from Latin America

Dany Rogers (), Wesley Mendes-Da-Silva (), Henrique Dantas Neder () and Pablo Rogers Silva ()
Additional contact information
Dany Rogers: UNIVERSIDADE FEDERAL DE UBERLÂNDIA

Brazilian Review of Finance, 2013, vol. 11, issue 3, 311-341

Abstract: This paper aims to analyze the impact of reclassifications trends in credit rating decisions in capital structure of listed non-financial companies in Latin America. To verify both the existence of this association were employed data belonging to all non-financial companies listed in Latin America, possessing ratings issued by the three major international ratings agencies international (i.e. Standard & Poor's, Moody's and Fitch) in January, 2010. When considering data for the period 2001-2010, through analysis of panel data, the main results suggest that the reclassifications of ratings seem have no informational content to the capital structure decisions of firms. However, some results indicate that companies classified in the worst levels of risk, and which are on the verge of the rating reclassifications, tend to use more debt than other companies, suggesting the existence of market timing.

Keywords: Credit Rating; Capital Structure; Generalized Method of Moments (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://bibliotecadigital.fgv.br/ojs/index.php/rbfin/article/download/4194/12113 (application/pdf)
http://bibliotecadigital.fgv.br/ojs/index.php/rbfin/article/view/4194 (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:11:y:2013:i:3:p:311-341

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 ().

 
Page updated 2022-08-05
Handle: RePEc:brf:journl:v:11:y:2013:i:3:p:311-341