CAPITAL STRUCTURE OF THE ARGENTINA AND CHILE STOCK EXCHANGES FROM 2007 TO 2016

Resumo

Objective: The present research consists of analyzing the behavior of the determinants of the capital structure of Argentine and Chilean companies between 2007 and 2016.Method: To achieve the purpose of this study, the following methodological characteristics were used: a) quantitative approach; b) research typologies were used: bibliographic, documentary, exploratory and explanatory; c) ten-year period (2007 to 2016) of Argentine and Chilean companies considering the financial reports extracted from the Economática database software; d) four statistical tools: 1) analysis; 2) Pearson correlation; 3) variance inflation factor (VIF); 4) panel data regression and tool-related tests.

Main results: The results show that Chilean companies have higher long-term and costly long-term indebtedness; Argentine companies with total, short-term and onerous short-term debt. Argentine companies have high averages in tangibility, return on assets, income tax, tax savings and profit volatility; Chilean companies have high averages in current liquidity, return to shareholders, growth in sales and assets, and market-to-book. Relevance/originality: The study focuses on two South American countries, Argentina and Chile, where there is a gap in the literature regarding studies related to these two markets when it comes to capital structure determinants. Theoretical/methodological contributions: The findings also lead us that Argentine and Chilean companies are more prone to the pecking order theory. Other indebtedness variables and their determinants are suggested in future research, in addition to the speed of indebtedness adjustment.