Análise da estrutura de capital das empresas brasileiras de capital aberto sob enfoque da life cycle theory

Abstract

This study aims to focus on capital structure determinants in different stages of development in the entrepreneurial environment under Life Cycle Theory of Berger and Udell (1998). This theory emphasizes different funding sources which are used by companies in different cycles of their lives. The data were generated and processed according to the Brazilian Economática software. Balance sheets provided by public corporations and listed at Bovespa Stock Exchange during 1996-2010 were considered for analysis. Panel Data are important points in methodological plan. Indeed, Multinomial Logit and Binomial Logit models were used to investigation. Development process effects by corporations upon their own financing were detailed and looking for adding the correlation among variables and minimizing their effects, the Principal Component Analysis (PCA) was attained for diagnosis. Results suggest changing on the main funding source, influenced by factors such as liquidity, collateral and risk. Regarding firms' age, there is evidence that companies with more than thirty years of initial IPO are less likely to change their main source of funding. According to the multinomial logit model, results suggest that large companies are more likely using short-term loans and internal funding than trade credit that those classified in small businesses. Although some results are consistent to those claimed by Berger and Udell (1998), research provides some aspects related to Pecking Order Theory.