Liquidity Risk and Capital Structure of Companies in Latin America

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-making
about capital structure.

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Biografía del autor/a

Francisco Javier Vásquez Tejos, Universidad Mayor, Santiago de Chile

PhD in Business Sciences. Universidad Mayor, Santiago de Chile, Chile.

Prosper Lamothe Fernández, Universidad Autónoma de Madrid

PhD in Economic Sciences. Universidad Autónoma de Madrid, Madrid, España

Hernan Pape Larre, Universidad de Atacama

PhD in Business Sciences. Universidad de Atacama, Copiapó, Chile.

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Publicado
2021-12-15
Cómo citar
Vásquez Tejos, F. J., Fernández, P. L., & Pape Larre, H. (2021). Liquidity Risk and Capital Structure of Companies in Latin America. Revista Perspectiva Empresarial, 8(2), 22-37. https://doi.org/10.16967/23898186.713
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