How the capital structure affects business performance and value creation: a case study of a Brazilian slaughterhouse from 2008 to 2015
Keywords:Value creation; Business performance; Analysis of financial statements; Capital structure.
The study aims to verify how the Capital Structure affects the Business Performance and Value Creation of a Brazilian company, in the meat and meat sector, operating globally, publicly traded and with its shares traded on the Stock Exchange Brazilian company B3, through Analysis of Financial Statements, in the period from 2008 to 2015. The research was carried out based on the data collected in Economática, deflation adjustments were made and later the main financial indexes and indicators of the company were calculated, with based on its Balance Sheet, Income Statement and Cash Flow. Horizontal Analysis, Vertical Analysis and the calculation of the indices were used: Liquidity, Profitability, Profitability, Indebtedness; being focused to understand how the Capital Structure affects Business Performance and Value Creation. The study allows to conclude that the inadequate form in the capital structure of the company in the period of analysis, carried out with a great debt in 2010 and 2011, only guarantees the company a good liquidity and capacity of payment in the short term; and fails to add economic value or business performance.
Agarwal, P., & O’hara, M. (20 de outubro de 2007). Information risk and capital structure. http://papers.ssrn.com/.
Albanez, T., & Valle, M. R. (Set/Dez de 2009). Impactos da assimetria de informação na estrutura de capital de empresas brasileiras abertas. Revista Contabilidade e Finanças da USP.
Brigham, E., & Ehrhardt, M. (2007). Administração Financeira. Thomson.
Brito, G. A., Corrar, L. J., & Batistella, F. D. (2007). Fatores determinantes da estrutura de capital das maiores empresas que atuam no Brasil. Revista Contabilidade & Finanças, 18(43), 9-19., pp. 9-19.
De Angelo, H., & Masulis, R. W. (1980). Optimal capital structure under corporate and personal taxation. Journal of Financial Economics.
Diamond, D. W. (1991). Monitoring and reputation: The choice between bank loans and directly placed debt. Journal of Political Economy, pp. 689-721.
Durand, D. (1952). Cost of debt and equity funds for business: trends and problems of measurement. Conference on Research on Business Finance. New York: Nacional Bureau of Economic Research.
Fama, E. F., & French, K. R. (2002). Testing trade-off and pecking order predictions about dividends and debt. Review of Financial Studies, pp. 1-33.
Frank, M. Z., & Goyal, V. K. (feb. de 2003). Testing the pecking order theory of capital structure. Journal of Financial Economics, 217-248.
Frydenberg, S. (2004). Theory of capital structure: a review. http://papers.ssrn.com/.
Giambiagi, F., Leal, G. B., Moreira, M. M., & Favaret, F. (2009). O financiamento de longo prazo e o futuro do BNDES. Em F. Giambiagi, G. B. Leal, M. M. Moreira, & F. Favaret, Brasil pós-crise: agenda para a próxima década (pp. 267-287). Rio de Janeiro: Elsevier.
Gitman, L. (1987). Princípios de Administração Financeira. São Paulo: Harbra.
Halov, N. (16 de out. de 2019). Dynamics of asymmetric information and capital structure. Fonte: SSRN Working Paper: http://papers.ssrn.com/ .
Hoshi, T., Kashyap, A., & Scharfstein, D. (1993). The choice between public and private debt: An analysis of post-deregulation corporate financing in Japan. Tokio: NBER Working Papers 4421, National Bureau Of Economic Research, Inc..
Klein, L. S., O’Brien, T. J., & Peters, S. R. (2002). Debt vs. equity and asymmetric information: a review. The Financial Review, 317-349.
Lazzarini, S. G., Musacchio, A., Bandeira de melo, R., & Marcon, R. (2011). What do development banks do? Evidence from Brazil, 2002-2009. Harvard Business School.
Leary, M. T., & Roberts, M. R. (2002). The pecking order, debt capacity, and information asymmetry. Fonte: SSRN Working Paper: http://papers.ssrn.com.
Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, pp. 261-297.
MYERS, S. (jul. de 1984). The capital structure puzzle. Journal of Finance Chicago: American Finance Association.
Myers, S. C. (1984). The capital structure puzzle. Journal of Finance. Chicago: American Finance Association.
Pereira, A. S., Shitsuka, D. M., Parreira, F. J., & Shitsuka, R. (2018). Metodologia da Pesquisa Científica. Santa Maria: Universidade de Santa Maria.
Scott, J. A. (1976). Theory of optimal capital structure. The Bell Journal of Economics.
Shyam-sunder, L., & Myers, S. C. (feb. de 1999). Testing static tradeoff against pecking order models of capital structure. Journal of Financial Economics, pp. of capital structure. Journal of Financial Economics, 51(2),219-244.
Tarantin junior, W., & Valle, M. R. (set./out./nov./dez. de 2015). Estrutura de Capital: o papel das fontes de financiamento nas quais companhias abertas se baseiam. Revista Contabilidade Finanças da USP, São Paulo, 26(69), 331-344.
Yin, R. K. (2015). Estudo de caso: planejamento e métodos. Bookman.
How to Cite
Copyright (c) 2021 Téucle Mannarelli Filho; Lívia Barbosa Mannarelli
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
1) Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
2) Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
3) Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.