Firms’ capital structure and the bankruptcy law design:e vidence from Brazil

This paper studies the effect of changes in creditors? priority order defined by the bankruptcy law on firms? capital structure. Taking advantage of the Brazilian bankruptcy law Reform and using firms? balance sheet data, we obtain results in line with theories that predict the effects on the capital structure due to changes in creditors? expectations. We find evidence of an increase in the debt portion of the capital structure.

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Year of publication:	2009-03
Authors:	Funchal, Bruno ; Clóvis, Mateus
Institutions:	Fundação Instituto Capixaba de Pesquisas em Contabilidade, Economia e Finanças (FUCAPE)
Subject:	Capital Structure \| Bankruptcy \| Law

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Extent:	application/pdf
Series:	Fucape Working Papers.
Type of publication:	Book / Working Paper
Notes:	Published in Fucape Working Papers Março 2009 Number 12 1 pages long
Source:	RePEc - Research Papers in Economics

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