ID: 41743
Authors:
Renê Coppe Pimentel, Márcio Luiz Borinelli, Iran Siqueira Lima, Gerlando Augusto S. F. de Lima.
Source:
Revista Enfoque: Reflexão Contábil, v. 27, n. 1, p. 23-36, January-April, 2008. 14 page(s).
Keyword:
Capital Market , Debentures , Debt Market , Economic Development , Eurobonds
Document type: Article (Portuguese)
Show Abstract
This article analyzes and discusses the evolution of the corporate bond market and the importance of this market to the financing of Brazilian companies, and consequently to economical development in Brazil. To that end, a historical approach was used, describing the main facts of the Brazilian and global capital markets, and analyzing the importance of raising funds both in local debentures market in the international eurobond market. The article also presents, through a descriptive study, the current scenario of corporate Brazilian financing in local and international markets, and discusses the result achieved in the volume of fundraising in the last three years. The study shows that, in spite of considerable growth in the last few years, the Brazilian debt market is still modest compared to developed countries. The explanation for this is derived from the history of the market (with short-term issuances and high inflation), low securities liquidity in the secondary market, and high competition for resources from the public sector, high fundraising and maintenance costs, and bureaucracy, which corroborate studies by Mihaljek, Scatigna and Villar (2002), Hawkins (2002), and Jiang,Tang and Law (2002).
