The effects of sovereign rating and corporate governance on the capital structure of Latin American companies.
Main Article Content
Abstract
This study analyzed the effects of sovereign rating and corporate governance (CG) on the capital structure of Latin American companies. A multilevel regression model was used for 823 companies listed on major Latin American stock exchanges over the period 2004-2018. The results showed that firm level is the most responsible factor for the variation in companies’ capital structure, while country level had the greatest influence on the variation in long-term debt. In the absence of CG mechanisms, sovereign rating is one of the factors not controlled by managers that can explain the capital structure of Latin American companies, which reduce their debt levels to protect themselves in the face of their countries’ sovereign rating variations. The results indicated that, despite having an audit committee and keeping independent members on the committee, firms choose to reduce their debt levels to protect themselves against the
constant variations of their countries’ sovereign rating. The results also showed that CG mechanisms do not act in isolation when it comes to reducing agency problems. This research is one of the first studies to provide evidence on the implications of sovereign ratings and CG on the capital structure of firms in Latin America.
Downloads
Download data is not yet available.
Article Details
How to Cite
Jesuka, D., & Peixoto, F. M. (2023). The effects of sovereign rating and corporate governance on the capital structure of Latin American companies. Brazilian Administration Review, 20(1), e220027. https://doi.org/10.1590/1807-7692bar2023220027
Section
Research Articles
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Afonso, A., Furceri, D., & Gomes, P. (2012). Sovereign credit ratings and financial markets linkages: Application to European data. Journal of International Money and Finance, 31(3), 606-638. https://doi.org/10.1016/j.jimonfin.2012.01.016
Ahmed, D., Shahab, Y., Ullah, F. & Ye, Z. (2020). Investor sentiment and insurers' financial stability: Do sovereign ratings matter? The Geneva Papers on Risk and Insurance-Issues and Practice, 45(2), 281-312. https://doi.org/10.1057/s41288-020-00160-z
Alqatamin, R. M. (2018). Audit committee effectiveness and company performance: Evidence from Jordan. Accounting and Finance Research, 7(2), 48-60. https://doi.org/10.5430/afr.v7n2p48
Ararat, M., Black, B. S., & Yurtoglu, B. B. (2017). The effect of corporate governance on firm value and profitability: Time-series evidence from Turkey. Emerging Markets Review, 30, 113-132. https://doi.org/10.1016/j.ememar.2016.10.001
Arslan, M., Zaman, R., Malik, R. K., & Mehmood, A. (2014). Impact of CEO duality and audit committee on firm performance: A study of oil & gas listed firms of Pakistan. Research Journal of Finance and Accounting, 5(17), 151-156. https://core.ac.uk/download/pdf/234630136.pdf
Bajaj, Y., Kashiramka, S. & Singh, S. (2020), "Capital structure dynamics: China and India (Chindia) perspective," European Business Review, 32(5), 845-868. https://doi.org/10.1108 /EBR-09- 2019- 0203
Bansal, N. & Sharma, A. K. (2016). Audit committee, corporate governance and firm performance: Empirical evidence from India. International Journal of Economics and Finance, 8(3), 103-116. http://dx.doi.org/10.5539/ijef.v8n3p103
Basel Committee (2003). Basel committee on banking supervision, consultative document: Overview of the new Basel capital accord. Retrieved July 28, 2022, from: https://www.bis.org/publ/bcbsca03.pdf
Berkman, A.N., Iskenderoglu, O., Karadeniz, E. & Ayyildiz, N. (2016). Determinants of Capital Structure: The Evidence from European Energy Companies. International Journal of Business Administration, 7(6), 96-106. https://doi.org/10.5430/ijba.v7n6p96
Bernardo, C.J., Albanez, T. & Securato, J.R. (2018). Macroeconomic and institutional factors, debt composition, and capital structure of Latin American Firms. Brazilian Business Review, 15(2), 152-174. https://doi.org/10.5430/ijba.v7n6p96
Boumparis, P., Milas, C. & Panagiotidis, T. (2019). Non-performing loans and overeign credit ratings. International Review of Financial Analysis, 64, 301-314. https://doi.org/10.1016/j.irfa.2019.06.002
Brooks, R., et al. (2004). The national market impact of sovereign rating changes. Journal of banking & finance, 28(1), 233-250. https://doi.org/10.1016/S0378-4266(02)00406-5
Bustillo, I., Perrotti, D.E., & Velloso, H. (2018). Sovereign credit ratings in Latin America and the Caribbean: Trends and impact on debt spreads. Studies and Perspective Series, 18, 1-52. https://doi.org/10.1353/eco.2019.0011
Buvanendra, S., Sridharan, P., & Thiyagarajan, S. (2017) Firm characteristics, corporate governance and capital structure adjustments: A comparative study of listed firms in Sri Lanka and India. IIMB Management Review, 29(4), 245-258. https://doi.org/10.1016/j.iimb.2017.10.002
Cai, P., Kim, S.J., & Gan, Q. (2016, February). The effects of sovereign credit rating on foreign direct investment. In Proceedings of 15th World Business Research Conference, Tokyo, Japan.
Cai, P., Kim, S. J., & Wu, E. (2019). Foreign direct investments from emerging markets: The push-pull effects of sovereign credit ratings. International Review of Financial Analysis, 61, 110-125. https://doi.org/10.1016/j.irfa.2018.10.006
Cantor, R. & Packer, F. (1996). Sovereign risk assessment and agency credit ratings. European Financial Management, 2(2), 247-256. https://doi.org/10.1111/j.1468-036X.1996.tb00040.x
Cheikh, N. B., Hmiden, O. B., Zaied, Y. B., & Boubaker, S. (2021). Do sovereign credit ratings matter for corporate credit ratings? Annals of Operations Research, 297(1), 77-114. https://doi.org/10.1007/s10479-020-03590-z
Chen, S. S., Chen, H. Y., Chang, C. C. & Yang, S. L. (2013). How do sovereign credit rating changes affect private investment? Journal of Banking & Finance, 37(12), 4820-4833. https://doi.org/10.1016/j.jbankfin.2013.09.002
Chen, S. S., Chen, H. Y. Chang, C. C. & Yang, S. L. (2016a). The relation between sovereign credit rating revisions and economic growth. Journal of Banking & Finance, 64, 90-100. https://doi.org/10.1016/j.jbankfin.2015.10.012
Chen, P. F., He, S., Ma, Z. & Stice, D. (2016b). The information role of audit opinions in debt contracting. Journal of Accounting and Economics, 61(1), 121-144. https://doi.org/10.1016/j.jacceco.2015.04.002
Dasilas, A. & Papasyriopoulos, N. (2015). Corporate governance, credit ratings and the capital structure of Greek SME and large listed firms. Small Business Economics, 45(1), 215- 244. https://doi.org/10.1007/s11187-015-9648-y
Detthamrong, U., Chancharat, N. & Vithessonthi, C. (2017). Corporate governance, capital structure and firm performance: Evidence from Thailand. Research in International Business and Finance, 42(6), 689-709. https://doi.org/10.1016/j.ribaf.2017.07.011
Dierker, M., Lee, I. & Seo, S.W. (2019). Risk changes and external financing activities: Tests of the dynamic trade-off theory of capital structure. Journal of Empirical Finance, 52, 178-200. https://doi.org/10.1016/j.jempfin.2019.03.004
Drago, D., & Gallo, R. (2016). The impact and the spillover effect of a sovereign rating announcement on the euro area CDS market. Journal of International Money and Finance, 67, 264-286. https://doi.org/10.1016/j.jimonfin.2016.06.004
Durand, D. (1952). Costs of debt and equity funds for business: Trends and problems of measurement. In Conference on Research in Business Finance, New York, USA.
Ellili, O. D. N. (2020). Environmental, social, and governance disclosure, ownership structure and cost of capital: Evidence from the UAE. Sustainability, 12(18), 7706. https://doi.org/10.3390/su12187706
Fávero, L. P. L., & Confortini, D. (2010). Random coefficient multilevel models and the firm, sector, and time effects in the Brazilian stock market. Operations Research, 30(3), 703-727. https://doi.org/10.1590/S0101-74382010000300011
Feng, Y., Hassan, A., & Elamer, A. A. (2020). Corporate governance, ownership structure and capital structure: Evidence from Chinese real estate listed companies. Int. Journal of Accounting & Information Management, 28(4), 759-783. https://doi.org/10.1108/IJAIM-04-2020-0042
Freitas, A. D. P. N., & Minardi, A. M. A. F. (2013). The impact of credit rating changes in Latin American stock markets. Brazilian Administration Review, 10(4), 439-461. https://doi.org/10.1590/S1807- 76922013000400005
Gaitán, S., Herrera-Echeverri, H., & Pablo, E. (2018). How corporate governance affects productivity in civil-law business environments: Evidence from Latin America. Global Finance Journal, 37, 173-185. https://doi.org/10.1016/j.gfj.2018.05.004
Ghafran, C., & O'Sullivan, N. (2017). The impact of audit committee expertise on audit quality: Evidence from UK audit fees. The British Accounting Review, 49(6), 578-593. https://doi.org/10.1016/j.bar.2017.09.008
Goldszmidt, R. G. B., Brito, L. A. L. & de Vasconcelos, F. C. (2011). Country effect on firm performance: A multilevel approach. Journal of BusinessResearch, 64(3), 273-279. https://doi.org/10.1016/j.jbusres.2009.11.012
Harris, M. & Raviv, A. (1991). The theory of capital structure. The Journal of Finance, 46(1), 297- 355. https://doi.org/10.1111/j.1540-6261.1991.tb03753.x
Hooper, V., Hume, T., & Kim, S. J. (2008). Sovereign rating changes: Do they provide new information for stock markets? Economic Systems, 32(2), 142-166. https://doi.org/10.1016/j.ecosys.2007.0 5.002
Hromei, A. S. (2021). The effect of corporate governance characteristics on capital structure. Analysis on European Companies. Practical Application of Science, 9(25), 67-73. https://ideas.repec.org/a/cmj/seapas/y2021i25p67-73.html
Jara, M., López-Iturriaga, F., San-Martín, P., & Saona, P. (2018). Corporate governance in Latin American firms: Contestability of control and firm value. Business Research Quarterly, 113(18):1-18. https://doi.org/10.1016/j.brq.2018.10.005
Jaradat, M.S. (2015). Corporate governance practices and capital structure: A study with special reference to board size, board gender, outside director, and CEO duality. International Journal of Economics, Commerce and Management, 3(5), 264-273.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
Jesuka, D., Oliveira, R. S. & Rogers, P (2021). sovereign rating, macroeconomic indicators and firm performance: Evidence from Latin America. Research on Humanities and Social Sciences, 11(8), 46-58. https://doi.org/10.7176/RHSS/11-8-06
Jesuka, D., & Peixoto, F. M. (2022). Corporate governance and firm performance: Does sovereign rating matter? Corporate Governance, 22(2), 243-256. https://doi.org/10.1108/CG-08-2020-0369
Joo, M. H., & Parhizgari, A. M. (2021). A behavioral explanation of credit ratings and leverage adjustments. Journal of Behavioral and Experimental Finance, 29, 100435. https://doi.org/10.1016/j.jbef.2020.100435
Kayo, E. K., & Kimura, H. (2011). Hierarchical determinants of capital structure. Journal of Banking & Finance, 35(2), 358-371. https://doi.org/10.1016/j.jbankfin.2010.08.015
Kajola, S. O., Olabisi, J. & Fapetu, O. (2019). Corporate governance mechanism and capital structure decision in Nigeria. Journal of Varna University of Economics, 63(1), 50-68. https://econpapers.repec.org/article/vrnjournl/y_3a2019_3ai_3a1_3ap_3a50-68.htm
Kieschnick, R. & Moussawi, R. (2018). Firm age, corporate governance, and capital structure choices. Journal of Corporate Finance, 48, 597-614. https://doi.org/10.1016/j.jcorpfin.2017.12.011
Kisgen, D. J. (2019). The impact of credit ratings on corporate behavior: Evidence from Moody's adjustments. Journal of Corporate Finance, 58, 567-582. https://doi.org/10.1016/j.jcorpfin.2019.07.002
Krichene, A. F. & Khoufi, W. (2016). The effects of credit ratings grades' change on capital structure: S & P 500. The International Journal of Engineering and Science, 5(2), 48-57. https://doi.org/10.11114/afa.v2i2.1604
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2000). Investor protection and corporate valuation. Journal of Finance, 57(3), 1147-1170. https://doi.org/10.1111/1540- 6261.00457
Marques, T. A., Ribeiro, K. C., & Barboza, F. (2018). Corporate governance and debt securities issued in Brazil and India: A multi-case study. Research in International Business and Finance, 45, 257- 270. https://doi.org/10.1016/j.ribaf.2017.07.156
Medina, S. R. & Di Pietro, F. (2019). Rating and capital structure: How do the signs affect the speed of adjustment? Journal of International Financial Management & Accounting, 30(3), 188-202. https://doi.org/10.1111/jifm.12106
M'ng, J. C. P., Rahman, M., & Sannacy, S. (2017). The determinants of capital structure: Evidence from publicly listed companies in Malaysia, Singapore and Thailand. Cogent Economics & Finance, 5(1), 1418609. https://doi.org/10.1080/23322039.2017.1418609
Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261–297. http://www.jstor.org/stable/1809766
Myers, S. C. (1974). Interactions of corporate financing and investment decisions-implications for capital budgeting. The Journal of finance, 29(1), 1-25. https://doi.org/10.2307/2978211
Rahman, M. T. (2019). Testing trade-off and pecking order theories of capital structure: Evidence and arguments. International Journal of Economics and Financial Issues, 9(5), 63-70. https://doi.org/10.32479/ijefi.8514
Rogers, D., Mendes-da-Silva, W. & Rogers, P. (2016). Credit rating change and capital structure in Latin America. Brazilian Administration Review, 13(2) 1-22. https://doi.org/10.1590/1807- 7692bar2016150164
Ruiz, S. C. (2017). Estructura de capital y gobierno corporativo en empresas de América Latina. casos de Brasil, Chile y México [Doctoral dissertation, Universitat de València], Universitat de València, Spain.
Sajjad, F., & Zakaria, M. (2018). Credit rating as a mechanism for capital structure optimization: Empirical evidence from panel data analysis. International Journal of Financial Studies, 6(1), 13. https://doi.org/10.3390/ijfs6010013
Shahar, W.S.S. & Manja, S. I. (2018) Determinants of Capital Structure. Reports on Economics and Finance, 4 (3), 139 - 149. https://doi.org/10.12988/ref.2018.8113
Sultana, N., & Van der Zahn, J. L. W. M. (2015). Earnings conservatism and audit committee financial expertise. Accounting & Finance, 55(1), 279-310. https://doi.org/10.1111/acfi.12042
Raisin, N. & Mitchell V. Z. (2015). Earnings conservatism and audit committee financial expertise. Accounting & Finance, 55(1), 279-310. https://doi.org/10.1111/acfi.12042
Turrent, G. D. C. B., & García, M. L. S. (2015). La composición del consejo de administración y la estructura accionaria como factores explicativos de la transparencia en el gobierno corporativo en Latinoamérica: evidencia en empresas cotizadas de Argentina, Brasil, Chile y México. Management Studies, 31(136), 275-286. https://doi.org/10.1016/j.estger.2015.02.001
Vazquez, P., Carrera, A., & Cornejo, M. (2020). Corporate governance in the largest family firms in Latin America, Cross Cultural & Strategic Management, 27(2), 137-163. https://doi.org/ 10.1108/CCSM-11-2018-0194
Vijayakumaran, R. & Vijayakumaran, S. (2019). Corporate governance and capital structure decisions: Evidence from Chinese listed companies. Journal of Asian Finance, Economics and Business, 6(3), 67-79. https://doi:10.13106/jafeb.2019.vol6.no3.67
White, L. J. (2010). Markets: The credit rating agencies. Journal of Economic Perspectives, 24(2), 211-2 26. https://doi.org/10.1257/jep.24.2.211
Yang, T., & Zhao, S. (2014). CEO duality and firm performance: Evidence from an exogenous shock to the competitive environment. Journal of Banking & Finance, 49, 534-552. https://doi.org/10.1016/j.jbankfin.2014.04.008
Ahmed, D., Shahab, Y., Ullah, F. & Ye, Z. (2020). Investor sentiment and insurers' financial stability: Do sovereign ratings matter? The Geneva Papers on Risk and Insurance-Issues and Practice, 45(2), 281-312. https://doi.org/10.1057/s41288-020-00160-z
Alqatamin, R. M. (2018). Audit committee effectiveness and company performance: Evidence from Jordan. Accounting and Finance Research, 7(2), 48-60. https://doi.org/10.5430/afr.v7n2p48
Ararat, M., Black, B. S., & Yurtoglu, B. B. (2017). The effect of corporate governance on firm value and profitability: Time-series evidence from Turkey. Emerging Markets Review, 30, 113-132. https://doi.org/10.1016/j.ememar.2016.10.001
Arslan, M., Zaman, R., Malik, R. K., & Mehmood, A. (2014). Impact of CEO duality and audit committee on firm performance: A study of oil & gas listed firms of Pakistan. Research Journal of Finance and Accounting, 5(17), 151-156. https://core.ac.uk/download/pdf/234630136.pdf
Bajaj, Y., Kashiramka, S. & Singh, S. (2020), "Capital structure dynamics: China and India (Chindia) perspective," European Business Review, 32(5), 845-868. https://doi.org/10.1108 /EBR-09- 2019- 0203
Bansal, N. & Sharma, A. K. (2016). Audit committee, corporate governance and firm performance: Empirical evidence from India. International Journal of Economics and Finance, 8(3), 103-116. http://dx.doi.org/10.5539/ijef.v8n3p103
Basel Committee (2003). Basel committee on banking supervision, consultative document: Overview of the new Basel capital accord. Retrieved July 28, 2022, from: https://www.bis.org/publ/bcbsca03.pdf
Berkman, A.N., Iskenderoglu, O., Karadeniz, E. & Ayyildiz, N. (2016). Determinants of Capital Structure: The Evidence from European Energy Companies. International Journal of Business Administration, 7(6), 96-106. https://doi.org/10.5430/ijba.v7n6p96
Bernardo, C.J., Albanez, T. & Securato, J.R. (2018). Macroeconomic and institutional factors, debt composition, and capital structure of Latin American Firms. Brazilian Business Review, 15(2), 152-174. https://doi.org/10.5430/ijba.v7n6p96
Boumparis, P., Milas, C. & Panagiotidis, T. (2019). Non-performing loans and overeign credit ratings. International Review of Financial Analysis, 64, 301-314. https://doi.org/10.1016/j.irfa.2019.06.002
Brooks, R., et al. (2004). The national market impact of sovereign rating changes. Journal of banking & finance, 28(1), 233-250. https://doi.org/10.1016/S0378-4266(02)00406-5
Bustillo, I., Perrotti, D.E., & Velloso, H. (2018). Sovereign credit ratings in Latin America and the Caribbean: Trends and impact on debt spreads. Studies and Perspective Series, 18, 1-52. https://doi.org/10.1353/eco.2019.0011
Buvanendra, S., Sridharan, P., & Thiyagarajan, S. (2017) Firm characteristics, corporate governance and capital structure adjustments: A comparative study of listed firms in Sri Lanka and India. IIMB Management Review, 29(4), 245-258. https://doi.org/10.1016/j.iimb.2017.10.002
Cai, P., Kim, S.J., & Gan, Q. (2016, February). The effects of sovereign credit rating on foreign direct investment. In Proceedings of 15th World Business Research Conference, Tokyo, Japan.
Cai, P., Kim, S. J., & Wu, E. (2019). Foreign direct investments from emerging markets: The push-pull effects of sovereign credit ratings. International Review of Financial Analysis, 61, 110-125. https://doi.org/10.1016/j.irfa.2018.10.006
Cantor, R. & Packer, F. (1996). Sovereign risk assessment and agency credit ratings. European Financial Management, 2(2), 247-256. https://doi.org/10.1111/j.1468-036X.1996.tb00040.x
Cheikh, N. B., Hmiden, O. B., Zaied, Y. B., & Boubaker, S. (2021). Do sovereign credit ratings matter for corporate credit ratings? Annals of Operations Research, 297(1), 77-114. https://doi.org/10.1007/s10479-020-03590-z
Chen, S. S., Chen, H. Y., Chang, C. C. & Yang, S. L. (2013). How do sovereign credit rating changes affect private investment? Journal of Banking & Finance, 37(12), 4820-4833. https://doi.org/10.1016/j.jbankfin.2013.09.002
Chen, S. S., Chen, H. Y. Chang, C. C. & Yang, S. L. (2016a). The relation between sovereign credit rating revisions and economic growth. Journal of Banking & Finance, 64, 90-100. https://doi.org/10.1016/j.jbankfin.2015.10.012
Chen, P. F., He, S., Ma, Z. & Stice, D. (2016b). The information role of audit opinions in debt contracting. Journal of Accounting and Economics, 61(1), 121-144. https://doi.org/10.1016/j.jacceco.2015.04.002
Dasilas, A. & Papasyriopoulos, N. (2015). Corporate governance, credit ratings and the capital structure of Greek SME and large listed firms. Small Business Economics, 45(1), 215- 244. https://doi.org/10.1007/s11187-015-9648-y
Detthamrong, U., Chancharat, N. & Vithessonthi, C. (2017). Corporate governance, capital structure and firm performance: Evidence from Thailand. Research in International Business and Finance, 42(6), 689-709. https://doi.org/10.1016/j.ribaf.2017.07.011
Dierker, M., Lee, I. & Seo, S.W. (2019). Risk changes and external financing activities: Tests of the dynamic trade-off theory of capital structure. Journal of Empirical Finance, 52, 178-200. https://doi.org/10.1016/j.jempfin.2019.03.004
Drago, D., & Gallo, R. (2016). The impact and the spillover effect of a sovereign rating announcement on the euro area CDS market. Journal of International Money and Finance, 67, 264-286. https://doi.org/10.1016/j.jimonfin.2016.06.004
Durand, D. (1952). Costs of debt and equity funds for business: Trends and problems of measurement. In Conference on Research in Business Finance, New York, USA.
Ellili, O. D. N. (2020). Environmental, social, and governance disclosure, ownership structure and cost of capital: Evidence from the UAE. Sustainability, 12(18), 7706. https://doi.org/10.3390/su12187706
Fávero, L. P. L., & Confortini, D. (2010). Random coefficient multilevel models and the firm, sector, and time effects in the Brazilian stock market. Operations Research, 30(3), 703-727. https://doi.org/10.1590/S0101-74382010000300011
Feng, Y., Hassan, A., & Elamer, A. A. (2020). Corporate governance, ownership structure and capital structure: Evidence from Chinese real estate listed companies. Int. Journal of Accounting & Information Management, 28(4), 759-783. https://doi.org/10.1108/IJAIM-04-2020-0042
Freitas, A. D. P. N., & Minardi, A. M. A. F. (2013). The impact of credit rating changes in Latin American stock markets. Brazilian Administration Review, 10(4), 439-461. https://doi.org/10.1590/S1807- 76922013000400005
Gaitán, S., Herrera-Echeverri, H., & Pablo, E. (2018). How corporate governance affects productivity in civil-law business environments: Evidence from Latin America. Global Finance Journal, 37, 173-185. https://doi.org/10.1016/j.gfj.2018.05.004
Ghafran, C., & O'Sullivan, N. (2017). The impact of audit committee expertise on audit quality: Evidence from UK audit fees. The British Accounting Review, 49(6), 578-593. https://doi.org/10.1016/j.bar.2017.09.008
Goldszmidt, R. G. B., Brito, L. A. L. & de Vasconcelos, F. C. (2011). Country effect on firm performance: A multilevel approach. Journal of BusinessResearch, 64(3), 273-279. https://doi.org/10.1016/j.jbusres.2009.11.012
Harris, M. & Raviv, A. (1991). The theory of capital structure. The Journal of Finance, 46(1), 297- 355. https://doi.org/10.1111/j.1540-6261.1991.tb03753.x
Hooper, V., Hume, T., & Kim, S. J. (2008). Sovereign rating changes: Do they provide new information for stock markets? Economic Systems, 32(2), 142-166. https://doi.org/10.1016/j.ecosys.2007.0 5.002
Hromei, A. S. (2021). The effect of corporate governance characteristics on capital structure. Analysis on European Companies. Practical Application of Science, 9(25), 67-73. https://ideas.repec.org/a/cmj/seapas/y2021i25p67-73.html
Jara, M., López-Iturriaga, F., San-Martín, P., & Saona, P. (2018). Corporate governance in Latin American firms: Contestability of control and firm value. Business Research Quarterly, 113(18):1-18. https://doi.org/10.1016/j.brq.2018.10.005
Jaradat, M.S. (2015). Corporate governance practices and capital structure: A study with special reference to board size, board gender, outside director, and CEO duality. International Journal of Economics, Commerce and Management, 3(5), 264-273.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
Jesuka, D., Oliveira, R. S. & Rogers, P (2021). sovereign rating, macroeconomic indicators and firm performance: Evidence from Latin America. Research on Humanities and Social Sciences, 11(8), 46-58. https://doi.org/10.7176/RHSS/11-8-06
Jesuka, D., & Peixoto, F. M. (2022). Corporate governance and firm performance: Does sovereign rating matter? Corporate Governance, 22(2), 243-256. https://doi.org/10.1108/CG-08-2020-0369
Joo, M. H., & Parhizgari, A. M. (2021). A behavioral explanation of credit ratings and leverage adjustments. Journal of Behavioral and Experimental Finance, 29, 100435. https://doi.org/10.1016/j.jbef.2020.100435
Kayo, E. K., & Kimura, H. (2011). Hierarchical determinants of capital structure. Journal of Banking & Finance, 35(2), 358-371. https://doi.org/10.1016/j.jbankfin.2010.08.015
Kajola, S. O., Olabisi, J. & Fapetu, O. (2019). Corporate governance mechanism and capital structure decision in Nigeria. Journal of Varna University of Economics, 63(1), 50-68. https://econpapers.repec.org/article/vrnjournl/y_3a2019_3ai_3a1_3ap_3a50-68.htm
Kieschnick, R. & Moussawi, R. (2018). Firm age, corporate governance, and capital structure choices. Journal of Corporate Finance, 48, 597-614. https://doi.org/10.1016/j.jcorpfin.2017.12.011
Kisgen, D. J. (2019). The impact of credit ratings on corporate behavior: Evidence from Moody's adjustments. Journal of Corporate Finance, 58, 567-582. https://doi.org/10.1016/j.jcorpfin.2019.07.002
Krichene, A. F. & Khoufi, W. (2016). The effects of credit ratings grades' change on capital structure: S & P 500. The International Journal of Engineering and Science, 5(2), 48-57. https://doi.org/10.11114/afa.v2i2.1604
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2000). Investor protection and corporate valuation. Journal of Finance, 57(3), 1147-1170. https://doi.org/10.1111/1540- 6261.00457
Marques, T. A., Ribeiro, K. C., & Barboza, F. (2018). Corporate governance and debt securities issued in Brazil and India: A multi-case study. Research in International Business and Finance, 45, 257- 270. https://doi.org/10.1016/j.ribaf.2017.07.156
Medina, S. R. & Di Pietro, F. (2019). Rating and capital structure: How do the signs affect the speed of adjustment? Journal of International Financial Management & Accounting, 30(3), 188-202. https://doi.org/10.1111/jifm.12106
M'ng, J. C. P., Rahman, M., & Sannacy, S. (2017). The determinants of capital structure: Evidence from publicly listed companies in Malaysia, Singapore and Thailand. Cogent Economics & Finance, 5(1), 1418609. https://doi.org/10.1080/23322039.2017.1418609
Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261–297. http://www.jstor.org/stable/1809766
Myers, S. C. (1974). Interactions of corporate financing and investment decisions-implications for capital budgeting. The Journal of finance, 29(1), 1-25. https://doi.org/10.2307/2978211
Rahman, M. T. (2019). Testing trade-off and pecking order theories of capital structure: Evidence and arguments. International Journal of Economics and Financial Issues, 9(5), 63-70. https://doi.org/10.32479/ijefi.8514
Rogers, D., Mendes-da-Silva, W. & Rogers, P. (2016). Credit rating change and capital structure in Latin America. Brazilian Administration Review, 13(2) 1-22. https://doi.org/10.1590/1807- 7692bar2016150164
Ruiz, S. C. (2017). Estructura de capital y gobierno corporativo en empresas de América Latina. casos de Brasil, Chile y México [Doctoral dissertation, Universitat de València], Universitat de València, Spain.
Sajjad, F., & Zakaria, M. (2018). Credit rating as a mechanism for capital structure optimization: Empirical evidence from panel data analysis. International Journal of Financial Studies, 6(1), 13. https://doi.org/10.3390/ijfs6010013
Shahar, W.S.S. & Manja, S. I. (2018) Determinants of Capital Structure. Reports on Economics and Finance, 4 (3), 139 - 149. https://doi.org/10.12988/ref.2018.8113
Sultana, N., & Van der Zahn, J. L. W. M. (2015). Earnings conservatism and audit committee financial expertise. Accounting & Finance, 55(1), 279-310. https://doi.org/10.1111/acfi.12042
Raisin, N. & Mitchell V. Z. (2015). Earnings conservatism and audit committee financial expertise. Accounting & Finance, 55(1), 279-310. https://doi.org/10.1111/acfi.12042
Turrent, G. D. C. B., & García, M. L. S. (2015). La composición del consejo de administración y la estructura accionaria como factores explicativos de la transparencia en el gobierno corporativo en Latinoamérica: evidencia en empresas cotizadas de Argentina, Brasil, Chile y México. Management Studies, 31(136), 275-286. https://doi.org/10.1016/j.estger.2015.02.001
Vazquez, P., Carrera, A., & Cornejo, M. (2020). Corporate governance in the largest family firms in Latin America, Cross Cultural & Strategic Management, 27(2), 137-163. https://doi.org/ 10.1108/CCSM-11-2018-0194
Vijayakumaran, R. & Vijayakumaran, S. (2019). Corporate governance and capital structure decisions: Evidence from Chinese listed companies. Journal of Asian Finance, Economics and Business, 6(3), 67-79. https://doi:10.13106/jafeb.2019.vol6.no3.67
White, L. J. (2010). Markets: The credit rating agencies. Journal of Economic Perspectives, 24(2), 211-2 26. https://doi.org/10.1257/jep.24.2.211
Yang, T., & Zhao, S. (2014). CEO duality and firm performance: Evidence from an exogenous shock to the competitive environment. Journal of Banking & Finance, 49, 534-552. https://doi.org/10.1016/j.jbankfin.2014.04.008