Influence of Macroeconomic Factors in the Capital Structure of Foreign Subsidiarie

Контуры глобальных трансформаций: политика, экономика, право

Daniela Verzola Vaz¹  Hsia Hua Sheng²  Nilton Deodoro Moreira Cardoso Junior³  João Paulo Martins Linhares⁴ 

[1] Federal University of São Paulo;Getuio Vargas Foundation (FGV-EAESP);INSPER;Sumitomo Mitsui Banking Corporation;

关键词: capital structure;    hedge;    subsidiaries of multinational company;    leverage;    macroeconomic factors;   

DOI  :  10.23932/2542-0240-2017-10-4-101-113

来源: DOAJ

【 摘 要 】

This article examines the influence of macroeconomic factors in the capital structure of subsidiaries of foreign multinational companies (SFM) in Brazil by comparing them with local Brazilian companies (LBC) during the period from 1998–2008. Panel data econometrics was used to analyze the data and test the hypotheses. During this period, exchange rate variation was positively associated with local leverage, which supported the hypothesis of income hedging in the context of foreign currency exposure of the head office. We also found less local leverage for foreign multinational companies when the macroeconomics scenario became more stable. Finally, contrary to the initial hypothesis, differences in financing rates between Brazil and the SFMs’ head office country were positively related to local leverage.

【 授权许可】

Unknown