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Brazilian Listed Companies' Financial Constraints

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  • Aldrighi, Dante Mendes
  • Bisinha, Rafael

Abstract

The paper focuses on evaluating whether Brazilian listed firms have faced financial constraints on their investments. Relying on balance-sheet and stock price data over the period 2001-2005, a panel data analysis is carried out, revealing results different from those initially expected: large firms are more sensitive to cash flows to undertake their investment than smaller ones. Nonetheless, the recent literature provides theoretical rationale to deal with those findings as well as empirical evidence consistent with them.

Suggested Citation

  • Aldrighi, Dante Mendes & Bisinha, Rafael, 2010. "Brazilian Listed Companies' Financial Constraints," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 64(1), March.
    • Handle: RePEc:fgv:epgrbe:v:64:y:2010:i:1:a:1176
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    File URL: https://periodicos.fgv.br/rbe/article/view/1176
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    References listed on IDEAS

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    Cited by:

    1. Antônio Marcos Hoelz Pinto Ambrozio & Filipe Lage de Sousa & João Paulo Martin Faleiros & André Albuquerque Sant'Anna, 2017. "Credit scarcity in developing countries: An empirical investigation using Brazilian firm-level data," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 17(1), pages 73-87.
    2. Filipe Lage de Sousa & Gianmarco I. P. Ottaviano, 2014. "Relaxing Credit Constraints in Emerging Economies: The Impact of Public Loans on the Performance of Brazilian Manufacturers," CEP Discussion Papers dp1309, Centre for Economic Performance, LSE.
    3. Lage de Sousa, Filipe & Ottaviano, Gianmarco I.P., 2018. "Relaxing credit constraints in emerging economies: The impact of public loans on the productivity of Brazilian manufacturers," International Economics, Elsevier, vol. 154(C), pages 23-47.
    4. Fatma Bouattour, 2016. "Financial Constraints and Export Performances: Evidence from Brazilian Micro-Data," Working Papers DT/2016/18, DIAL (Développement, Institutions et Mondialisation).

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