Liquidity Risk and Capital Structure of Companies in Latin America

• Autores: Francisco Javier Vásquez Tejos, Prosper Lamothe Fernández, Hernan Pape Larre
• Localización: Revista Perspectiva Empresarial, ISSN 2389-8194, ISSN-e 2389-8186, Vol. 8, Nº. 2, 2021 (Ejemplar dedicado a: jul-dic), págs. 22-37
• Idioma: inglés
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• Resumen

  • Objective. To explore the relationship between liquidity risk and the capital structure of Latin American companies. Methodology. With a sample of 135 companies (Brazil, Chile and Mexico), panel data were used to analyze various models that considered, among other variables, six liquidity risk indices, two of which included a new factor: the free-float. The study period covers from 2010 to 2019. Results. The level of indebtedness and capital risk in Latin America companies present a mixed relationship (direct and inverse). Conclusions. Latin American companies have their own characteristics for decision-makingabout capital structure.