This teaching case provides the possibility for discussion on epistemological and paradigmatic issues in finance. It deals mainly with the cognitive, social, and emotional influences observed on the decision making of individuals - Behavioral Finance’s study field. This fictitious case exemplifies how a manager's beliefs, emotions, and feelings can influence his decisions and, consequently, impact his business’...
This study investigates whether non-financial Latin American firms adjust their capital structure in order to maintain certain rating levels. The credit rating-capital structure (CR-CS) hypothesis suggests that firms assume less debt after rating downgrades, aiming to retrieve necessary conditions to restore a better rating. Through panel data analysis for the 2000-2014 period and by using the generalized metho...
According to market timing theory, companies tend to issue stocks or debts in order to exploit the opportunity window and this behavior is a significant determinant for capital structure. Based on this assertion and recent evidence found in the Brazilian market, this paper has the objective of analyzing the market timing behavior of the six publicly-traded companies in BM&FBOVESPA of the EBX Group (MPX, MMX...