Determinants of the indebtedness of Brazilian electric energy companies negotiated on B3

Authors

DOI:

https://doi.org/10.21680/2176-9036.2023v15n2ID31355

Keywords:

Electric companies., capital structure., pecking order approach., trade-off approach.

Abstract

Purpose: This paper investigates the determinants of indebtedness of Brazilian listed electric power companies, considering the pecking order and trade-off theories.

Methodology: 24 companies were studied between 2010 and 2020. There is the same number of cross-section companies in the sample in each of the eleven years. The data is in balanced panel form, with 264 observations in total. The source of the data was the Economatica® platform. The regression method was ordinary least squares, considering so-called fixed effects and random effects.

Results: The results showed that the larger the electric company the higher the debt and the higher the tangible assets and the growth rate of the company the lower the debt. The trade-off theory generally prevailed.

Contributions of the Study: The empirical findings showed that the Brazilian electricity sector presented a conservative posture between 2010 and 2020. It is safe to say that there is no evidence of a financial collapse in the sector due to debt. 

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Author Biographies

Carlos Henrique Rocha, Universidade de Brasília - UnB

Ph.D. em Economia (Inglaterra). Professor Associado IV na Universidade de Brasília, Departamento de Administração.

Francisco Gildemir Ferreira da Silva, Universidade Federal do Ceará

Civil Engineer from UFC. Master's degree in Transportation from the University of Brasília. PhD in Economics from the Federal University of Ceará. Professor of the Finance Department at UFC.

Gustavo Mamede Dias Ferreira, Universidade de Brasília - UnB

Analista da KPMG. Graduado em Ciências Contábeis pela Universidade de Brasília.

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Published

04-07-2023

How to Cite

ROCHA, C. H.; SILVA, F. G. F. da .; FERREIRA, G. M. D. Determinants of the indebtedness of Brazilian electric energy companies negotiated on B3. REVISTA AMBIENTE CONTÁBIL - Universidade Federal do Rio Grande do Norte, [S. l.], v. 15, n. 2, p. 61–76, 2023. DOI: 10.21680/2176-9036.2023v15n2ID31355. Disponível em: https://periodicos.ufrn.br/ambiente/article/view/31355. Acesso em: 22 nov. 2024.

Issue

Vol. 15 No. 2 (2023): Jul./Dez.

Section

Section 1: Accounting Applied to the Business Sector (S1)

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