Capital structure, stock exchanges in Chile: 2007 to 2016

Abstract

PurposeThe article consists of analyzing the behavior of the determinants of the capital structure of Chilean companies between 2007 and 2016. The objective of this study was achieved through a typology of research based on bibliographic, documentary, exploratory and explanatory, considering annual financial reports from Economática in the chosen period.Design/methodology/approachAs this is a research study with a quantitative approach, the statistical tools used were descriptive analysis, Pearson correlation, variance inflation factor (VIF) and panel regression.FindingsThe results show that Chilean companies (240) have higher and costly long-term debt. These companies have high averages in current liquidity, return to shareholders, growth in sales and assets and market-to-book (MTB). Long-term debt was highlighted with an explanatory power of 85%. Current liquidity was highlighted as being significant in most of the indebtedness proposed in the survey, failing to register brands like this in expensive short-term and long-term indebtedness. It is noticed that flip flops companies are more prone to the pecking order theory (POT). The gap occupied by this study is linked to research involving South American countries, especially the Chilean market, and the determinants of the capital structure.Originality/valueAs future research, it is suggested to include other types of variables related to indebtedness and the same action for its determinants, in addition to the speed technique of adjusting corporate debts.

The relationship between goodwill and capital structure and the moderating effect of financial market development

“…Besides, demand side factors such as PPETA (property, plant and equipment to total assets), LSL (log of sales), earnings before interest and tax to total assets (EBITA), market-to-book ratio (MTB), firm age, pay-out ratio and depreciation to total assets (DEPTA) consistently predict debt ratios in both the developed and developing countries. These outcomes align with the outcomes of Henrique et al . (2021) and Kumar et al .…”

“…In addition, due to favorable property rights (Claessens and Laeven, 2003) and better protection of creditors' rights (Giannetti, 2003), the collaterizability of intangible assets (goodwill assets) is more Besides, demand side factors such as PPETA (property, plant and equipment to total assets), LSL (log of sales), earnings before interest and tax to total assets (EBITA), market-to-book ratio (MTB), firm age, pay-out ratio and depreciation to total assets (DEPTA) consistently predict debt ratios in both the developed and developing countries. These outcomes align with the outcomes of Henrique et al (2021) and Kumar et al (2017) who reported EBITA, PPETA, LSL, firm age, MTB and DEPTA, as determinants of firms' debt ratios in developing and developed countries. The findings of Hang et al (2018), who found PPETA, MTB and EBITA as drivers of enterprises' debt ratios, are also supported by these data.…”

“…However, studies on the supply-side determinants are less common compared to the studies on firm-specific or demand-side determinants. Among the few studies are (Demirguç-Kunt and Maksimovic, 1999; De Jong et al ., 2008; Fan et al ., 2012; Acedo-Ramírez and Ruiz-Cabestre, 2014; Mc Namara et al ., 2017; Thakur et al ., 2020, 2022, 2023; Henrique et al ., 2021). They have considered supply-side factors and have mostly looked at the direct link between supply-side factors and capital structure.…”

“…Each variable also relates to either one or more of the capital structure theories. Recently, Jaworski and Santos (2022) and Henrique et al (2021) also used JEFAS 29,57 size, profitability, growth opportunity, firm age and fixed assets as control variables for determinants of capital structure which they found to be statistically significant.…”

Análisis de la estructura de financiamiento de las Pymes del Ecuador

“…Tejos & Pape Larre, 2021).Un estudio realizado en Chile por RabeloHenrique et al (2021) que analiza el comportamiento de los determinantes de la estructura de capital de una muestra de 240 empresas que cotizan en bolsa, concluye que la variable rentabilidad se orienta al enfoque de la Teoría del Orden Jerárquico, con una relación negativa respecto al endeudamiento; y que, las variables independientes liquidez, tangibilidad y rentabilidad tienen una influencia significativa sobre el endeudamiento.En el contexto de Ecuador, un estudio realizado por Espinoza et al (2024) sobre la estructura de financiamiento y la rentabilidad de las Pymes que cotizan en el mercado bursátil, utilizo un modelo de regresión cuantílica, en donde la variable dependiente es el retorno sobre activos y las variables independientes son tamaño y deuda. Los autores evidenciaron que la deuda y el tamaño se relación negativamente con el retorno sobre activos.…”