The industry effect on firms' capital structure: Evidence from Brazil
Main Article Content
Abstract
This paper is an empirical investigation that uses IPI benefits (tax benefit) offered by the Brazilian government as an exogenous shock in the relationship between firm and industry leverage. We used data from Brazilian companies between 2007 and 2015. The econometric model used was diff-in-diff-in-diff. The results show a direct relationship between the mean industry leverage and the firm’s leverage. The same remains for the treatment group after inclusion of exogenous shock of IPI reduction in the model. These results are aligned with studies that consider the industry as the principal influencing aspect of the firm's capital structure.
Article Details
Section
Long Paper
Authors that publish in the Brazilian Review of Finance agree with the following terms:
Authors maintain their moral rights and grant to Review the copyright and the first publication right with their work simultaneously licensed under a Creative Commons Attribution 3.0 License that allows the total or partial copy of the work, including for commercial use, and sharing of the work with recognition of its authors and the initial publication in this journal.
Authors are allowed to take additional contracts separately for non-exclusive distribution of the paper published in this journal (eg, in institutional repositories or to publish as a book chapter), with recognition of its authors and the initial publication in this journal.
Authors are permitted and encouraged to post their work online (eg, in institutional repositories or on their website) at any point before or during the submission process, as this can lead to productive exchanges, as well as increase the impact and citation of the published work.
The contents of the signed articles are the sole responsibility of the authors, remains their responsibility even after the transfer of the copyright. The Review reserves the right to make normative, spelling and grammar changes in the original article in order to maintain the linguistic standards, but will follow the style of the authors. RBFin also reserves the right to translate the article into another language. RBFin may impose a copyright transfer form as a condition for publishing the article.
