Determinants of capital structure in the initial primary shares offer in Brazil: a panel data analysis

Abstract

This article aims to identify the determinants of capital structure, studying the relationship between debt levels and factors listed in the literature in the institutions that made initial public offering of shares. As methodology, was applied a regression technique by panel data analysis, with the intention to evaluate and quantify the relationship between the listed rates and the theories of Pecking Order, Trade Off and Agency Theory. Seeking a better interpretation of the results, the econometric application was made with two groups: i. companies made initial public offering of shares in the period between 2004 and 2014; ii. 100 largest companies in 2004, already operating in the BMF&BOVESPA, according IBrX. One can prove that some determinants (Liquidity, Market to Book Growth) presented the results expected by the theory, while others (Tangibility, Risk, Size) bucked the listed theoretical assumptions (Pecking Order, Trade Off and Agency Theory). Moreover, the results show a higher maturity degree (relative liquidity) in companies already belonging to the stock exchange, and a significant adherence to Pecking Order theory in relation to the profitability index of new entrants in the BMF&BOVESPA, among other findings supported by empirical theory