This article investigates the effects of privatization under Brazil's National Privatization Program during the 1990s on companies' capital structure. Our model suggests that privatized firms increased their market leverage by 10 to 14% on average relative to the level before privatization. The...

Purpose – The purpose of this paper is to study the effect of changes in creditors' priority defined by the bankruptcy law on firms' capital structure. Design/methodology/approach – Taking advantage of the Brazilian bankruptcy law reform as an experiment and using publicly traded firms'...

Purpose – The purpose of this paper is to study the effect of changes in creditors' priority defined by the bankruptcy law on firms' capital structure. Design/methodology/approach – Taking advantage of the Brazilian bankruptcy law reform as an experiment and using publicly traded firms'...