Data for The Effects of Sovereign Rating and Corporate Governance on the Capital Structure of Latin American Companies / published byBAR - Brazilian Administration Review

Published: 25 January 2023| Version 1 | DOI: 10.17632/p6ch724zbf.1
Contributors:
Jesuka Duterval,

Description

This study analyzed the effects of sovereign rating and corporate governance (GC) on the capital structure of Latin American companies. A multilevel regression model was used for 823 companies listed on the main Latin American exchanges in the period of 2004-2018. The results show that the firm level is most responsible for the variation in the capital structure of companies, while the country level had the greatest influence on the variation in long-term debt. In the absence of GC mechanisms, the sovereign rating is one of the factors not controlled by managers that can explain the capital structure of Latin American companies, which reduce their debt levels to protect themselves against changes in the sovereign rating of their countries. The results indicated that even having an audit committee and maintaining independent members on this committee, firms choose to reduce their debt levels, to protect themselves against constant variations in the sovereign rating of their respective countries. The results show that Corporate Governance mechanisms do not act in isolation when it comes to reducing agency problems.

Files

Steps to reproduce

1- Data can be collected from the Thomson Reuters database. 2- Open a version of Stata above 14; 3- Save do-file and data in the same folder; 4- Import the data to the state 5- Execute the commands.

Institutions

Universidade Federal de Uberlandia

Categories

Corporate Governance, Capital Structure, Latin America, Multi-Level Modeling, Rating Agency

Funding

Coordenação de Aperfeiçoamento de Pessoal de Nível Superior

Fundação de Amparo à Pesquisa do Estado de Minas Gerais

Organization of American States

License