KEY FACTORS IN WORKING CAPITAL MANAGEMENT IN THE BRAZILIAN MARKET

Many studies have been conducted in corporate finance regarding long-term investment and financing decisions. However, short-term asset investments play a significant role in the balance sheet of companies. Moreover, financial managers dedicate significantamounts of time and effort to the subject of working capital management, balancing current assets and liabilities. This paper provides insights regarding the key factors of working capital management by exploring the internal variables of a number of companies. This study used data from 2,976 Brazilian public companies from 2001 to 2008, and found that debt level, size and growth rate can affect the working capital management of companies

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

Clinical Course of Laryngeal Granuloma Without Surgical Treatment

Laryngeal granuloma is a rather common pathological entity, but its therapeutic strategy is still controversial. In general, therapeutic strategy consists of medications such as steroids or tranilast, in addition to vocal hygiene and surgery. Surgical removal is most commonly performed. However, it has recently been reported that recurrence after surgery is high

Diversity of the board and capital structure

Board diversity has been the recurring theme for discussions both in the academic and corporate environments. The concept of diversity is broad and encompasses not only gender and ethnic variety, but also the diversity of cultural, social, and professional aspects. This research aims to contribute to the understanding of the influence of company boards on corporate policies, by analyzing the effects of board diversity on firms’ financial/ capital structure decisions. The results suggest that board diversity improves monitoring effectiveness and is positively related with firm leverage, in line with the effects of reduction of managerial entrenchment by means of stronger monitoring

A relação entre o risco de negócio e o endividamento

Este artigo teve como foco estudar a relação entre o risco do negócio e o endividamento das empresas brasileiras. Para este fim, foram usadas seis variáveis para representar o risco de negócio e cinco índices de endividamento calculados em seus valores contábeis e de mercado. O método utilizado no trabalho para o tratamento dos dados foi o painel de dados e foi usado o modelo de estimação de painel estático. Dentre os resultados obtidos pelas regressões realizadas, os mais interessantes foram a relação negativa do desvio padrão do ROA com as dividas financeira e liquida, a relação negativa do desvio padrão do log das vendas e do desvio padrão da variação da receita operacional com as variáveis de endividamento em valor contábil e a relação negativa do beta desalavancado com as variáveis de endividamento em valor de mercado. Este trabalho concluiu que o risco de negócio é relevante para as decisões sobre a estrutura de capital da empresas