Corporate governance and capital structure in Latin America: empirical evidence
Purpose – This study aims to examine the relationship between corporate governance mechanisms and the capital structure of Latin American firms. Design/methodology/approach – The sample included companies from Argentina, Brazil, Chile, Colombia, Mexico and Peru. The authors collected data from 201 n...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2022-09-01
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| Series: | Journal of Capital Markets Studies |
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| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/JCMS-03-2022-0010/full/pdf |
| _version_ | 1797788788211056640 |
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| author | Dermeval Martins Borges Júnior |
| author_facet | Dermeval Martins Borges Júnior |
| author_sort | Dermeval Martins Borges Júnior |
| collection | DOAJ |
| description | Purpose – This study aims to examine the relationship between corporate governance mechanisms and the capital structure of Latin American firms. Design/methodology/approach – The sample included companies from Argentina, Brazil, Chile, Colombia, Mexico and Peru. The authors collected data from 201 non-financial companies between 2009 and 2018, totalizing 1,716 firm-year observations. The data were analyzed using descriptive statistics and linear regression models with panel data. Findings – The main results indicated that chief executive officer duality, legal protection system and corporate social responsibility voluntary disclosure impact the firm's total debt ratio, corresponding to a positive effect for the first two variables and a negative for the last. Originality/value – This study advances in two main ways. Firstly, due to the broad approach in which the authors addressed corporate governance, involving board composition, ownership structure, minority shareholders legal protection system and information disclosure. Secondly, by presenting empirical evidence about the effects of corporate governance on capital structure from an extensive sample of Latin American firms, the authors expect to contribute to the international debate on the capital structure due to the unique characteristics of Latin America in this regard. |
| first_indexed | 2024-03-13T01:41:31Z |
| format | Article |
| id | doaj.art-2e70b0f7f5094d9688080e9098e49a43 |
| institution | Directory Open Access Journal |
| issn | 2514-4774 |
| language | English |
| last_indexed | 2024-03-13T01:41:31Z |
| publishDate | 2022-09-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Journal of Capital Markets Studies |
| spelling | doaj.art-2e70b0f7f5094d9688080e9098e49a432023-07-03T12:56:42ZengEmerald PublishingJournal of Capital Markets Studies2514-47742022-09-016214816510.1108/JCMS-03-2022-0010Corporate governance and capital structure in Latin America: empirical evidenceDermeval Martins Borges Júnior0Federal University of Uberlândia, Uberlândia, BrazilPurpose – This study aims to examine the relationship between corporate governance mechanisms and the capital structure of Latin American firms. Design/methodology/approach – The sample included companies from Argentina, Brazil, Chile, Colombia, Mexico and Peru. The authors collected data from 201 non-financial companies between 2009 and 2018, totalizing 1,716 firm-year observations. The data were analyzed using descriptive statistics and linear regression models with panel data. Findings – The main results indicated that chief executive officer duality, legal protection system and corporate social responsibility voluntary disclosure impact the firm's total debt ratio, corresponding to a positive effect for the first two variables and a negative for the last. Originality/value – This study advances in two main ways. Firstly, due to the broad approach in which the authors addressed corporate governance, involving board composition, ownership structure, minority shareholders legal protection system and information disclosure. Secondly, by presenting empirical evidence about the effects of corporate governance on capital structure from an extensive sample of Latin American firms, the authors expect to contribute to the international debate on the capital structure due to the unique characteristics of Latin America in this regard.https://www.emerald.com/insight/content/doi/10.1108/JCMS-03-2022-0010/full/pdfCapital structureCorporate governanceCapital marketsLatin America |
| spellingShingle | Dermeval Martins Borges Júnior Corporate governance and capital structure in Latin America: empirical evidence Journal of Capital Markets Studies Capital structure Corporate governance Capital markets Latin America |
| title | Corporate governance and capital structure in Latin America: empirical evidence |
| title_full | Corporate governance and capital structure in Latin America: empirical evidence |
| title_fullStr | Corporate governance and capital structure in Latin America: empirical evidence |
| title_full_unstemmed | Corporate governance and capital structure in Latin America: empirical evidence |
| title_short | Corporate governance and capital structure in Latin America: empirical evidence |
| title_sort | corporate governance and capital structure in latin america empirical evidence |
| topic | Capital structure Corporate governance Capital markets Latin America |
| url | https://www.emerald.com/insight/content/doi/10.1108/JCMS-03-2022-0010/full/pdf |
| work_keys_str_mv | AT dermevalmartinsborgesjunior corporategovernanceandcapitalstructureinlatinamericaempiricalevidence |