Capital structure of non-financial corporations in Brazil: an analysis from 2009 to 2017

Abstract

This paper analyzed the capital structure of 121 publicly traded non-financial companies operating in Brazil between 2009-2017. The methodology was based on Moreira and Puga (2000) and the information was collected in Economática. The results showed that in this interval third party resources, mostly indebtedness, were the main source of financing. Moreover, there was a greater participation in firms with higher total assets. Between 2009-2013 there was an increase in the indebtedness of firms as their maturity lengthened, while between 2014-2017 the opposite occurred. In the latter period, the share of third-party resources decreased in relation to the previous period. It was concluded that the greater share of third-party resources and the improvement in the debt profile were largely due to the expansive cycle of Brazilian corporate credit, and that the retraction of such credit is partly absorbed by its[A1][A2] own resources, which may assume greater importance in the coming years.

Keywords:
Capital structure; Non-financial corporations; Long-term financing