Capital structure and information asymmetry: a study of brazilian publicly traded companies of textile and electricity industries

Authors

  • Natália Carolina Duarte de Medeiros Professora do Centro Universitário de Formiga - UNIFOR - MG
  • Francisval de Melo Carvalho Prof. Dr. da Universidade Federal de Lavras
  • Caio Peixoto Chain Universidade Federal de Lavras
  • Gideon Carvalho de Benedicto Prof. Dr. da Universidade Federal de Lavras
  • Washington Santos da Silva Prof. Dr. do Instituto Federal de Educação Ciência e Tecnologia de Minas Gerais

DOI:

https://doi.org/10.5902/1983465913257

Abstract

Given the various theories of capital structure and the Pecking Order theory, the present study related the information asymmetry and the capital structure of companies aiming to verify if information asymmetry affects the definition of the capital structure of Brazilian companies held in the electric power industry and textile. The research involved a sample of 53 companies, 31 of the electricity and 22 textiles sector during the years 2008 to 2012. The methodology used was regression with panel data, it allows the same unit cross-sectional monitored over time. The results showed that information asymmetry is an important determinant of capital structure, but that the sectors diverge with respect to the Pecking Order Theory. In the case of the energy sector to reduce information asymmetry led to a propensity for debt, while the textile sector, the opposite occurred, as companies less susceptible to information asymmetry are averse to debt.

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Author Biography

Natália Carolina Duarte de Medeiros, Professora do Centro Universitário de Formiga - UNIFOR - MG

Mestre em Administração, Universidade Federal de Lavras

Published

2018-07-18

How to Cite

Medeiros, N. C. D. de, Carvalho, F. de M., Chain, C. P., Benedicto, G. C. de, & Silva, W. S. da. (2018). Capital structure and information asymmetry: a study of brazilian publicly traded companies of textile and electricity industries. Revista De Administração Da UFSM, 11(2), 268–289. https://doi.org/10.5902/1983465913257

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Articles