ID: 408
Authors:
Ariádine de Freitas Silva, Mauricio Ribeiro do Valle.
Source:
Revista de Administração Contemporânea, v. 12, n. 1, p. 201-229, January-March, 2008. 29 page(s).
Keyword:
Brazilian and American companies , capital structure , indebtedness , long term debt
Document type: Article (Portuguese)
Show Abstract
This paper
analyzed total and long term indebtedness of Brazilian and American companies
pertaining to various sectors of economy, between 1999-2003. Besides the
comparative study, some hypotheses about the determinants of corporate debt
maturity structure, based on main authors' studies found in literature for
companies from different countries, were tested using ordinary least squares
(cross-sectional regressions). Also, a comparative analysis among the sectors
was achieved using mean comparison tests. The results showed that Brazilian and
American companies presented, respectively, a greater and increasing proportion
of short and long term debts during the period. Relating to the long term debt,
it was verified the superiority of American companies to the Brazilian ones.
But, relating to the total debt, Brazilian companies showed they were higher
indebted than the American ones. The regressions indicated that companies with
a greater proportion of assets to be given as collateral, obtained greater
levels of total and long term debts. There were also evidences that companies
with higher profits and higher depreciation expenses tend to show both less
long term and total indebtedness. Finally, it was verified that total debt is
positively related to a company's size.