Influence of Macroeconomic Factors in the Capital Structure of Foreign Subsidiarie

This article examines the influence of macroeconomic factors in the capital structure of subsidiaries of foreign multinational companies (SFM) in Brazil by comparing them with local Brazilian companies (LBC) during the period from 1998–2008. Panel data econometrics was used to analyze the data and t...

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Autores principales:	João Paulo Martins Linhares, Hsia Hua Sheng, Daniela Verzola Vaz, Nilton Deodoro Moreira Cardoso Junior
Formato:	article
Lenguaje:	EN RU
Publicado:	Ассоциация независимых экспертов «Центр изучения кризисного общества» (in English: Association for independent experts “Center for Crisis Society Studies”) 2017
Materias:	capital structure hedge subsidiaries of multinational company leverage macroeconomic factors International relations JZ2-6530
Acceso en línea:	https://doaj.org/article/b8e7be40c56b4465a2a840355553050b
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spelling	oai:doaj.org-article:b8e7be40c56b4465a2a840355553050b2021-11-07T14:45:01ZInfluence of Macroeconomic Factors in the Capital Structure of Foreign Subsidiarie2542-02402587-932410.23932/2542-0240-2017-10-4-101-113https://doaj.org/article/b8e7be40c56b4465a2a840355553050b2017-11-01T00:00:00Zhttps://www.ogt-journal.com/jour/article/view/43https://doaj.org/toc/2542-0240https://doaj.org/toc/2587-9324This article examines the influence of macroeconomic factors in the capital structure of subsidiaries of foreign multinational companies (SFM) in Brazil by comparing them with local Brazilian companies (LBC) during the period from 1998–2008. Panel data econometrics was used to analyze the data and test the hypotheses. During this period, exchange rate variation was positively associated with local leverage, which supported the hypothesis of income hedging in the context of foreign currency exposure of the head office. We also found less local leverage for foreign multinational companies when the macroeconomics scenario became more stable. Finally, contrary to the initial hypothesis, differences in financing rates between Brazil and the SFMs’ head office country were positively related to local leverage.João Paulo Martins LinharesHsia Hua ShengDaniela Verzola VazNilton Deodoro Moreira Cardoso JuniorАссоциация независимых экспертов «Центр изучения кризисного общества» (in English: Association for independent experts “Center for Crisis Society Studies”)articlecapital structurehedgesubsidiaries of multinational companyleveragemacroeconomic factorsInternational relationsJZ2-6530ENRUКонтуры глобальных трансформаций: политика, экономика, право, Vol 10, Iss 4, Pp 101-113 (2017)
institution	DOAJ
collection	DOAJ
language	EN RU
topic	capital structure hedge subsidiaries of multinational company leverage macroeconomic factors International relations JZ2-6530
spellingShingle	capital structure hedge subsidiaries of multinational company leverage macroeconomic factors International relations JZ2-6530 João Paulo Martins Linhares Hsia Hua Sheng Daniela Verzola Vaz Nilton Deodoro Moreira Cardoso Junior Influence of Macroeconomic Factors in the Capital Structure of Foreign Subsidiarie
description	This article examines the influence of macroeconomic factors in the capital structure of subsidiaries of foreign multinational companies (SFM) in Brazil by comparing them with local Brazilian companies (LBC) during the period from 1998–2008. Panel data econometrics was used to analyze the data and test the hypotheses. During this period, exchange rate variation was positively associated with local leverage, which supported the hypothesis of income hedging in the context of foreign currency exposure of the head office. We also found less local leverage for foreign multinational companies when the macroeconomics scenario became more stable. Finally, contrary to the initial hypothesis, differences in financing rates between Brazil and the SFMs’ head office country were positively related to local leverage.
format	article
author	João Paulo Martins Linhares Hsia Hua Sheng Daniela Verzola Vaz Nilton Deodoro Moreira Cardoso Junior
author_facet	João Paulo Martins Linhares Hsia Hua Sheng Daniela Verzola Vaz Nilton Deodoro Moreira Cardoso Junior
author_sort	João Paulo Martins Linhares
title	Influence of Macroeconomic Factors in the Capital Structure of Foreign Subsidiarie
title_short	Influence of Macroeconomic Factors in the Capital Structure of Foreign Subsidiarie
title_full	Influence of Macroeconomic Factors in the Capital Structure of Foreign Subsidiarie
title_fullStr	Influence of Macroeconomic Factors in the Capital Structure of Foreign Subsidiarie
title_full_unstemmed	Influence of Macroeconomic Factors in the Capital Structure of Foreign Subsidiarie
title_sort	influence of macroeconomic factors in the capital structure of foreign subsidiarie
publisher	Ассоциация независимых экспертов «Центр изучения кризисного общества» (in English: Association for independent experts “Center for Crisis Society Studies”)
publishDate	2017
url	https://doaj.org/article/b8e7be40c56b4465a2a840355553050b
work_keys_str_mv	AT joaopaulomartinslinhares influenceofmacroeconomicfactorsinthecapitalstructureofforeignsubsidiarie AT hsiahuasheng influenceofmacroeconomicfactorsinthecapitalstructureofforeignsubsidiarie AT danielaverzolavaz influenceofmacroeconomicfactorsinthecapitalstructureofforeignsubsidiarie AT niltondeodoromoreiracardosojunior influenceofmacroeconomicfactorsinthecapitalstructureofforeignsubsidiarie
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Influence of Macroeconomic Factors in the Capital Structure of Foreign Subsidiarie

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