Corporate leverage, the cost of capital, and the financial crisis in Latin America

Using a quarterly dataset of 185 listed firms in six Latin American countries between 1993 and 2009 we find that leverage is positively related to tangibility, firm size and the market to book ratio, and negatively related to profitability. The average cost of debt is negatively related with size, t...

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Detalles Bibliográficos
Autores principales: Bebczuk, Ricardo Néstor, Galindo, Arturo
Formato: Articulo Documento de trabajo
Lenguaje:Inglés
Publicado: 2011
Materias:
Ciencias Económicas
corporate leverage; cost of debt; financial crisis
América Latina
economía
deuda exterior
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/3684
http://www.depeco.econo.unlp.edu.ar/doctrab/doc85.pdf
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-3684
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
corporate leverage; cost of debt; financial crisis
América Latina
economía
deuda exterior
spellingShingle Ciencias Económicas
corporate leverage; cost of debt; financial crisis
América Latina
economía
deuda exterior
Bebczuk, Ricardo Néstor
Galindo, Arturo
Corporate leverage, the cost of capital, and the financial crisis in Latin America
topic_facet Ciencias Económicas
corporate leverage; cost of debt; financial crisis
América Latina
economía
deuda exterior
description Using a quarterly dataset of 185 listed firms in six Latin American countries between 1993 and 2009 we find that leverage is positively related to tangibility, firm size and the market to book ratio, and negatively related to profitability. The average cost of debt is negatively related with size, tangibility, firm growth, the leverage ratio, and the ratio of long-to short-term debt and positively to profitability. We find that the recent international crisis did not have a significant impact on the set of firms in our sample, but affected the way in which leverage and the interest to debt ratio relate to firm fundamentals. In particular we find that the links between leverage, tangibility and profitability were strengthened, and that financial constraints were not increased during the crisis.The evidence is consistent with a flight-to-quality phenomenon in favor of big, listed firms.
format Articulo
Documento de trabajo
author Bebczuk, Ricardo Néstor
Galindo, Arturo
author_facet Bebczuk, Ricardo Néstor
Galindo, Arturo
author_sort Bebczuk, Ricardo Néstor
title Corporate leverage, the cost of capital, and the financial crisis in Latin America
title_short Corporate leverage, the cost of capital, and the financial crisis in Latin America
title_full Corporate leverage, the cost of capital, and the financial crisis in Latin America
title_fullStr Corporate leverage, the cost of capital, and the financial crisis in Latin America
title_full_unstemmed Corporate leverage, the cost of capital, and the financial crisis in Latin America
title_sort corporate leverage, the cost of capital, and the financial crisis in latin america
publishDate 2011
url http://sedici.unlp.edu.ar/handle/10915/3684
http://www.depeco.econo.unlp.edu.ar/doctrab/doc85.pdf
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bdutipo_str Repositorios
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