Financial crisis effect on Latin American companies’ debts

Purpose: This study aims to verify changes in the debt structure of companies in the main Latin American countries. Approach/Methodology/Design: A difference-in-differences test is applied in a sample of 520 publicly-traded and closed companies, whose data are collected in the previous (2003-2007) and subsequent (2008-2012) periods of the crisis. Findings: The results include the replacement of bank debts by private and public non-bank debts, reduction of maturity of debts and relevance of better level of governance or regulatory environment of countries in guaranteeing the rights of creditors in this process. Practical Implications: These results are in line with the countercyclical fiscal policy adopted by these countries, guaranteeing them greater credibility in international markets. Social Implications: This study also suggest questions for future research. Each Latin American country faces many problems that are motivated by diverse events - political, for example - that impact the economy. That task involves the broadening of this methodology to incorporate internal shocks as well as global crisis. Originality/Value: One of the principal contributions of this study is the finding that companies in the main Latin American countries replace their banking credit by utilizing non-banks, just as done by the developed countries. Understanding better this effect of the global financial crisis may lead to helpful permanent macroeconomic and microeconomic measures.peer-reviewe

Debt tax benefits in a high tax emerging market : evidence from Brazil

Purpose: This study hypothesizes that tax benefits encourage the use of third-party capital, and seeks to verify whether the tax benefit deriving from debts has a positive effect on Brazilian companies’ capital structure. Approach/Methodology/Design: Data on 259 nonfinancial companies over the period 20082018 are extracted from the Standard & Poor’s Capital IQ database and are analyzed through regression with dynamic data panel. The variables considered as tax benefit proxies are: marginal tax rate, kink, standardized kink and tax payment.The investigations comprise: trade off theory, pecking order theory, information asymmetry, bankruptcy costs and agency theory. Findings: A positive debt effect on capital structure, taxation as providing a systematic incentive for greater leverage, and that, Brazilian companies, despite the country’s heavy tax burden, are not taken full advantage of debt tax benefits. The study offers new evidence as to the speed of adjusting the indebtedness level relating to an optimal capital structure target. Brazilian companies have ground to contract more debt and maximize their tax benefit. Practical Implications: The study will contribute positively to the understanding of influence of high tax emerging market for the government, academia, banks, industry, managers, regulators, investors and other users. Originality/value: This study innovates by using MTR, kink and standardized kink to find debt tax benefits affecting emerging market companies’ capital structure.peer-reviewe

A systematic review of the influence of taxation on corporate capital structure

Purpose: The aim of this paper is a systematic review of the corporate finance literature on tax and capital structure since the complexity of legislation on taxation. It is a challenge for to researchers to understand the influence of this legislation on corporate financing. Approach/Methodology/Design: A systematic review is a useful and important tool to check what has being studied and what are the gaps on the specific subject. Therefore, the study provides an examination of a sample of 33 most cited articles in the period from 2013 to 2017 that have been published in the main international financial journals. It is assumed that this analysis is sufficiently robust to support and contribute to the knowledge gaps identification. Findings: It presents the most relevant papers about the influence of taxes on corporate capital structure, classifies and codifies the various characteristics of these articles, describes the strengths and the weaknesses of the studies in the available literature, and provides an agenda and a research framework to address the key gaps in the current knowledge on the theme. Practical Implications: The study will contribute positively to the understanding of foreign direct investment for the governments, world organizations, academia, companies and investors. Originality/Value: To the best of the authors´ knowledge, this is the first systematic review identifying what is missing in the literature on taxation and capital structure.peer-reviewe

The influence of taxes on foreign direct investment : systematic literature review and bibliometric analysis

Purpose: The paper proposes a systematic review and bibliometric analysis of the corporate finance literature on tax and multinational investment, since the complexity of legislations and taxation is a challenge to researchers who seek to understand their influence on corporate financing decisions. It presents the most relevant papers about the influence of taxes on corporate capital structure, classifies and codifies the various characteristics of these articles, describes the strengths and weaknesses of the studies and provides an agenda and a research framework to address the key gaps in the current knowledge on the theme. Approach/Methodology/Design: The study classifies 41 selected articles cited in the WoS database. The papers are reviewed and their main contributions are identified. Findings: The results indicate that tax is a determinant for multinational companies. However, the complexity of the legislations implies problems in estimating and the results of these studies. Among the knowledge gaps identified, the estimation problems of the models stand out, due to the difficulty in calculating the tax proxies. The papers present opposite results for the same information bases and research problems, depending on how the tax independent variable is modulated. Practical Implications: The study will contribute positively to the understanding of foreign direct investments, world organizations, multinational companies and investors. Originality/Value: To the best of the authors´ knowledge, this is the first systematic review identifying what is missing in the literature on taxation and capital structure of multinationals, while offering recommendations for future studies.peer-reviewe

Determinants of startup´s value according to venture capitalists

PURPOSE: The objective of this study is to analyze the existing literature and identify knowledge gaps about the main value determinants of startups – according to venture capitalists’ perspective.DESIGN/METHODOLOGY/APPROACH: This objective is verified through a bibliometric analysis and systematic review, which execution considers the use of RStudio, Biblioshiny and Rank Words softwares. The final sample consists of 184 articles, obtained from the Web of Science and Scopus databases. Furthermore, this study also verifies the main bibliometric laws - Lotka (authors), Bradford (journals) and Zipf (keywords).FINDINGS: There is a future research avenue related to the analysis of: i) financial determinants of startups’ value that are in more advanced stages – scale-up and mature – e.g. expenditure on research and development, sales growth, profitability, ii) types of venture capitalists as startups’ value determinants – e.g., crowdfunding, angel investor, mutual funds and iii) alternative methods of startups’ valuation – e.g., First Chicago, Scorecard, Venture capital, Berkus.PRACTICAL IMPLICATIONS: The results of the study allow an approximation between the research topics of the academic community and the startup management, enabling a consistent evolution of this market segment.ORIGINALITY/VALUE: The bibliometric analysis considers the verification of three main laws – Zipf, Bradford and Lotka. Furthermore, the systematic review is carried out through the codification of a (sub)categorization matrix. Moreover, the study also provides the analysis of the following aspects - not verified by other researches on the same topic: (i) stages of the startups as determinants of value for venture capitalists; (ii) geographical coverage between countries and (iii) mapping of the various types of venture capitalists.peer-reviewe

O impacto do anúncio da OPEP no preço das ações das companhias de petróleo

Purpose: This study aims at verifying the negative impact of the announcement made by OPEC to maintain oil production - on March 5, 2020 - on the oil companies´ share prices in the main countries of Latin America and the BRIC´s.Design/methodology/approach: Such objective is verified through an event whose final sample consists of 29 oil companies of Brazil, Chile, Colombia, Russia, India and China.Findings: H1- OPEC announcement negatively affects the share price of oil companies- is not confirmed. However, H2 – OPEC announcement differently affects the share price of oil companies in Latin America and other emerging countries that make up the BRIC - is confirmed.Research limitations/implications: The sample considers only oil companies operating in the oil and integrated gas segments, as well as oil and gas exploration and production.Practical implications: These results expand the understanding of the impact of oil commodity price shocks on the share prices of oil companies in emerging countries, during the Covid-19 pandemic.Originality/value: Verification of a positive shock impact on the supply or the reduction in the oil price on the return on shares of BRIC´s companies and among other Latin American countries, during Covid-19.Finalidade: Este estudo tem por objetivo verificar o impacto negativo do anúncio realizado pela OPEP para manutenção da produção de petróleo - em 5 de março de 2020 - no preço das ações das empresas petrolíferas dos principais países da América Latina e do BRIC.Metodologia: Tais objetivos são verificados por meio de evento, cuja amostra final é composta por 29 empresas de petróleo do Brasil, Chile, Colômbia, Rússia, Índia e China.Constatações: Não se confirma a H1 – O anúncio da OPEP afeta negativamente o preço das ações das empresas petrolíferas. Porém, a H2 – O anúncio da OPEP afeta diferentemente o preço das ações das empresas petrolíferas da América Latina e de outros países emergentes que compõem o BRIC é confirmada.Limitações: São consideras na amostra apenas empresas petrolíferas que atuam nos segmentos de petróleo e gás integrado, bem como exploração e produção de petróleo e gás.Implicações práticas: Esses resultados ampliam a compreensão do impacto dos choques do preço da commodity de petróleo nos preços das ações de companhias petrolíferas de países emergentes, durante a pandemia da Covid-19Originalidade/valor: Verificação do impacto de um choque positivo na oferta ou da redução do preço do petróleo sobre o retorno das ações das empresas do BRIC e entre demais países da América Latina durante a Covid-19

Como os gestores brasileiros tomam suas decisões de custo de capital?

Although there are theories of capital structure and cost of capital since the 1950s, researches show that there is no unanimity about practical application by managers in several countries. This study, therefore, has the objective of presenting how Brazilian managers define the cost of capital of their companies. Unlike other studies, this work presents clarification not only about the methods and variables that make up the cost of capital, but it also deals with criteria related to time and sources of data collection, as well as the local customization values for emerging markets, taking developed countries as benchmarking. The survey is conducted with 40 public companies. Among the results, we note that companies: (a) internally calculate their cost of capital through WACC, (b) consider their current capital structure, (c) use historical interest rates of debt, (d) use nominal tax rates, (e) use financial current and long term liabilities to determine the total value of debts (f) use CAPM model for cost of equity, with benchmarking of historical data from other markets, adjusted to Brazil.Keywords: survey, cost of capital, WACC tropicalizing, emerging markets.Apesar de as teorias sobre estrutura e custo de capital existirem desde a década de 1950, pesquisas comprovam que não há unanimidade quanto à sua aplicação prática pelos gestores em vários países. Este estudo tem, portanto, o objetivo de apresentar como os gestores brasileiros definem o custo de capital de suas companhias. Diferentemente de outras pesquisas, este trabalho apresenta esclarecimentos não apenas sobre os métodos e variáveis que compõem o custo de capital, mas também aborda critérios relacionados ao prazo e fontes de obtenção dos dados, bem como sobre a tropicalização dos valores para mercados emergentes, tendo como referência benchmarkings de países desenvolvidos. A pesquisa é realizada com 40 empresas de capital aberto. Entre os resultados apresentados, nota-se que as empresas: (a) calculam internamente seu custo de capital por meio do WACC, (b) consideram sua estrutura de capital corrente, (c) usam taxas de juros históricas das dívidas, (d) usam alíquotas nominais de impostos, (e) usam passivos onerosos de curto e longo prazos para determinar o valor total das dívidas e (f) usam o modelo do CAPM para custo de capital próprio, com benchmarking de dados históricos de outros mercados, ajustados ao Brasil.Palavras-chave: survey, custo de capital, tropicalização do WACC, mercados emergentes

Como os gestores brasileiros tomam suas decisões de custo de capital?

Although there are theories of capital structure and cost of capital since the 1950s, researches show that there is no unanimity about practical application by managers in several countries. This study, therefore, has the objective of presenting how Brazilian managers define the cost of capital of their companies. Unlike other studies, this work presents clarification not only about the methods and variables that make up the cost of capital, but it also deals with criteria related to time and sources of data collection, as well as the local customization values for emerging markets, taking developed countries as benchmarking. The survey is conducted with 40 public companies. Among the results, we note that companies: (a) internally calculate their cost of capital through WACC, (b) consider their current capital structure, (c) use historical interest rates of debt, (d) use nominal tax rates, (e) use financial current and long term liabilities to determine the total value of debts (f) use CAPM model for cost of equity, with benchmarking of historical data from other markets, adjusted to Brazil.Keywords: survey, cost of capital, WACC tropicalizing, emerging markets.Apesar de as teorias sobre estrutura e custo de capital existirem desde a década de 1950, pesquisas comprovam que não há unanimidade quanto à sua aplicação prática pelos gestores em vários países. Este estudo tem, portanto, o objetivo de apresentar como os gestores brasileiros definem o custo de capital de suas companhias. Diferentemente de outras pesquisas, este trabalho apresenta esclarecimentos não apenas sobre os métodos e variáveis que compõem o custo de capital, mas também aborda critérios relacionados ao prazo e fontes de obtenção dos dados, bem como sobre a tropicalização dos valores para mercados emergentes, tendo como referência benchmarkings de países desenvolvidos. A pesquisa é realizada com 40 empresas de capital aberto. Entre os resultados apresentados, nota-se que as empresas: (a) calculam internamente seu custo de capital por meio do WACC, (b) consideram sua estrutura de capital corrente, (c) usam taxas de juros históricas das dívidas, (d) usam alíquotas nominais de impostos, (e) usam passivos onerosos de curto e longo prazos para determinar o valor total das dívidas e (f) usam o modelo do CAPM para custo de capital próprio, com benchmarking de dados históricos de outros mercados, ajustados ao Brasil.Palavras-chave: survey, custo de capital, tropicalização do WACC, mercados emergentes

A Participação de Fundos de Venture Capital e Private Equity Adiciona Valor às Empresas Brasileiras? Um Estudo sobre IPOs

A indústria do empreendedorismo brasileira vem crescendo em número de empresas e volume. Esse crescimento, aliado à dificuldade de financiamento encontrada por empresas estreantes no mercado, caracteriza o ambiente de empreendedorismo nacional como uma oportunidade de investimento aos fundos de venture capital (VC) e private equity (PE). Estudos evidenciam que a presença desses contribui para a redução da assimetria informacional no mercado por intermédio da atuação dos seus gestores. Assim, organizações que recebem tais investimentos são vistas como mais confiáveis por investidores não ligados aos fundos, sinalizando a existência de retornos positivos, no momento de sua abertura de capital (IPO). O presente trabalho tem como objetivo comparar o retorno das empresas que recebem aportes prévios desses fundos, em relação àquelas que não contam com esses investimentos no momento do IPO. Para tanto, realiza-se um estudo de evento com 83 companhias, sendo 36 com e 47 sem a participação prévia de fundos, cuja listagem ocorre durante o período de janeiro de 2005 a dezembro de 2016 na Bolsa Balcão Brasil (B3). A análise dos retornos compreende os períodos de 22 (1 mês), 132 (6 meses) e 264 (1 ano) pregões, a partir do evento de início das negociações dessas ações na bolsa de valores. Os resultados mostram que as janelas de 132 e 264 pregões possuem diferenças de CARs positivas e estatisticamente diferentes de zero - entre as amostras com e sem participação prévia de fundos de VC/PE. Confirma-se H1 para estas janelas - companhias com participação prévia de fundos de VC/PE possuem retornos superiores àquelas sem tais participações. Entretanto, essas mesmas janelas apontam para resultados negativos que não permitem a confirmação da H2 - quanto maior a participação prévia dos fundos de VC/PE no capital dessas companhias, maior o retorno de suas ações

A PRESENÇA DE MULHERES CRIA VALOR ÀS EMPRESAS?

Mecanismos de governança corporativa são instrumentos relevantes na criação de valor e melhoria da performance financeira das empresas, destacando-se o papel do conselho de administração e diretoria. Segundo a teoria institucional, a simples presença de mulheres no conselho administrativo e diretoria sinaliza o reconhecimento e sucesso alcançados por elas na empresa. Assim, este estudo tem por objetivo verificar as seguintes hipóteses. H1: A presença de mulheres no conselho de administração e diretoria aumenta o valor da empresa e H2: A presença de mulheres no conselho de administração e diretoria melhora a performance financeira da empresa. A amostra final é composta por 113 companhias brasileiras não financeiras de capital aberto, entre os anos de 2010 e 2017, listadas na Brasil, Bolsa, Balcão. A confirmação de ambas as hipóteses ocorre por meio de estatística descritiva, análise de correlação e modelo de regressão pooled cross section