Capital Structure Adjustment in Brazilian Family Firms
Main Article Content
Abstract
We examine the extent to which family companies are different from non-family companies in their leverage ratios and their capital structure adjustment. By applying a dynamic trade-off model to a sample of Brazilian companies for 2003-2013, we show that family companies have higher leverage and slower adjustment speeds in comparison to non-family companies. We argue that family companies’ managers tend toward higher leverage because they are more confident and optimistic than managers of non-family firms. Financial constraints stemming from this high leverage prevent over-leveraged family firms from rapidly adjusting their target capital structure.
Downloads
Download data is not yet available.
Download data is not yet available.
Article Details
How to Cite
Kayo, E. K., Brunaldi, E. O., & Aldrighi, D. M. (1). Capital Structure Adjustment in Brazilian Family Firms. Journal of Contemporary Administration, 22(1), 92-114. https://doi.org/10.1590/1982-7849rac2018170004
Section
Articles
Since mid-February of 2023, the authors retain the copyright relating to their article and grant the journal RAC, from ANPAD, the right of first publication, with the work simultaneously licensed under the Creative Commons Attribution 4.0 International license (CC BY 4.0), as stated in the article’s PDF document. This license provides that the article published can be shared (allows you to copy and redistribute the material in any medium or format) and adapted (allows you to remix, transform, and create from the material for any purpose, even commercial) by anyone.
After article acceptance, the authors must sign a Term of Authorization for Publication, which is sent to the authors by e-mail for electronic signature before publication.