2017, Volume 22, nº 1
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- Capital structure of exporter SMEs during the financial crisis : evidence from PortugalPublication . Lisboa, InêsThis study aims to identify the most important determinants to explain the capital structure of exporter SMEs during the financial crisis. Capital structure is measured using three alternative ratios: total debt, long-term debt, and short-term debt, as the impact of the determinants can depend on debt maturity. Analysing an unbalanced sample of 277 Portuguese exporter SMEs, from 2008 until 2014, and using a panel data methodology, estimating the models with fixed effects for firms, the results suggest that size, profitability, asset structure, non-debt tax shields, growth, liquidity, and age are important determinants for explaining firms’ capital structure. Furthermore, exports intensity and crisis effect do not impact a firm’s indebtedness. Findings are consistent with the hierarchy of funds proposed by the Pecking Order Theory. The Trade-off Theory is also important, as fixed asset can be used as collateral in the case of a firm’s bankruptcy. Additionally, results suggest that exporter SMEs hold more short-term than long-term debt, especially small-sized firms. Finally, companies’ debt ratio presents a constant tendency during the period analysed.
- Corporate tax avoidance and ex ante equity cost of capital in EuropePublication . Pulido, Matilde; Barros, VictorThe aim of this paper is to study the longstanding relationship between corporate tax avoidance and ex ante equity cost of capital in Europe, taking into consideration country specific characteristics, which are essential in a context of corporate tax competition. We find that investors apprehend tax avoidance differently at distinct levels of tax avoidance. We provide strong evidence that as low tax avoidance firms engage in greater tax avoidance, the ex ante equity cost of capital decreases. On the contrary, when high-tax avoidance firms undertake greater levels of tax avoidance, the ex ante equity cost of capital appears to increase. The benefits for firms engaged in lower tax avoidance are greater from 2008 onwards, during the period of financial crisis. These results confirm that in Europe a non-linear convex relationship exists between tax avoidance and ex ante equity cost of capital. Finally, we explore the impact of institutional characteristics and results suggest that in English common law countries the effect of corporate tax avoidance on ex ante equity cost of capital appears to be lower than that in other legal origins1
- Markowitz efficient frontier and capital market line : evidence from the portuguese stock marketPublication . Garcia, Maria Teresa; Borrego, DanielThis paper estimates the efficient frontier and the capital market line using listed stocks of the Portuguese capital market that are part of the PSI20 index, considering two different periods - before and after the 2008 financial crisis, known as the Global Financial Crisis. The results show the impact of the 2008 financial crisis on the global minimum variance portfolio and on the market portfolio. The sensitivity analysis of the results to the inclusion or not of the year 2008 is also considered