Influence of collateral and age on corporate capital structure
Being financed by third-party capital requires the companies to put up collateral or assets in guarantee, consisting of real estate, inventories, and accounts receivable that in turn depend on specific life cycles, among other aspects. The main object of this study is to analyze whether corporate de...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
LLC "CPC "Business Perspectives"
2019-12-01
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| Series: | Investment Management & Financial Innovations |
| Subjects: | |
| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12744/IMFI_2019_04_Wanderson.pdf |
| _version_ | 1811285030458097664 |
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| author | Wanderson Heiderich Lizardo da Silva Michele Nascimento Jucá Anderson Luís Saber Campos Eli Hadad Júnior |
| author_facet | Wanderson Heiderich Lizardo da Silva Michele Nascimento Jucá Anderson Luís Saber Campos Eli Hadad Júnior |
| author_sort | Wanderson Heiderich Lizardo da Silva |
| collection | DOAJ |
| description | Being financed by third-party capital requires the companies to put up collateral or assets in guarantee, consisting of real estate, inventories, and accounts receivable that in turn depend on specific life cycles, among other aspects. The main object of this study is to analyze whether corporate debt is related to age and collateral. To do so, a sample of 194 public and private Brazilian companies was studied between 2010 and 2017. The findings indicate that more mature businesses have lower debt levels. In terms of the collateral variable and interactions between collateral and age, a negative relation was noted with financial leverage, contrary to what was expected. This fact indicates a possible lack of quality in collateral over time. Furthermore, it is noted that there is no directly proportional relationship between progression in age and collateral. The contribution of the study consists of analyzing the relationships between collateral and age in terms of the debt levels of public and private Brazilian businesses. The distinctions between these groups may throw light on organizations in the emerging countries in terms of how to handle financing decisions with financial and capital market institutions. |
| first_indexed | 2024-04-13T02:38:25Z |
| format | Article |
| id | doaj.art-61033777f28a4d63b76f7c8ad1babbf3 |
| institution | Directory Open Access Journal |
| issn | 1810-4967 1812-9358 |
| language | English |
| last_indexed | 2024-04-13T02:38:25Z |
| publishDate | 2019-12-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Investment Management & Financial Innovations |
| spelling | doaj.art-61033777f28a4d63b76f7c8ad1babbf32022-12-22T03:06:18ZengLLC "CPC "Business Perspectives"Investment Management & Financial Innovations1810-49671812-93582019-12-0116412313210.21511/imfi.16(4).2019.1112744Influence of collateral and age on corporate capital structureWanderson Heiderich Lizardo da Silva0Michele Nascimento Jucá1Anderson Luís Saber Campos2Eli Hadad Júnior3Master in Business Administration, Universidade Presbiteriana Mackenzie, São PauloPostdoctoral in Business Finance, Universidade Presbiteriana Mackenzie, São PauloPh.D. in Business Administration, Universidade Federal do ABC, São Bernardo do CampoPh.D. in Business Administration, Universidade Presbiteriana Mackenzie, São PauloBeing financed by third-party capital requires the companies to put up collateral or assets in guarantee, consisting of real estate, inventories, and accounts receivable that in turn depend on specific life cycles, among other aspects. The main object of this study is to analyze whether corporate debt is related to age and collateral. To do so, a sample of 194 public and private Brazilian companies was studied between 2010 and 2017. The findings indicate that more mature businesses have lower debt levels. In terms of the collateral variable and interactions between collateral and age, a negative relation was noted with financial leverage, contrary to what was expected. This fact indicates a possible lack of quality in collateral over time. Furthermore, it is noted that there is no directly proportional relationship between progression in age and collateral. The contribution of the study consists of analyzing the relationships between collateral and age in terms of the debt levels of public and private Brazilian businesses. The distinctions between these groups may throw light on organizations in the emerging countries in terms of how to handle financing decisions with financial and capital market institutions.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12744/IMFI_2019_04_Wanderson.pdfaccounts receivableageBrazilinventoryleveragepooled cross-section |
| spellingShingle | Wanderson Heiderich Lizardo da Silva Michele Nascimento Jucá Anderson Luís Saber Campos Eli Hadad Júnior Influence of collateral and age on corporate capital structure Investment Management & Financial Innovations accounts receivable age Brazil inventory leverage pooled cross-section |
| title | Influence of collateral and age on corporate capital structure |
| title_full | Influence of collateral and age on corporate capital structure |
| title_fullStr | Influence of collateral and age on corporate capital structure |
| title_full_unstemmed | Influence of collateral and age on corporate capital structure |
| title_short | Influence of collateral and age on corporate capital structure |
| title_sort | influence of collateral and age on corporate capital structure |
| topic | accounts receivable age Brazil inventory leverage pooled cross-section |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/12744/IMFI_2019_04_Wanderson.pdf |
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