MACROECONOMIC VARIABLES AND CAPITAL STRUCTURE: PUBLIC FINANCE AND INSURANCE IN LATIN AMERICA AND ASIA

This article analyzes the relationship between macroeconomic variables and the capital structure of public finance and insurance companies in Latin America and Asia. The variables used were: Gross Domestic Product (GDP), Exchange Rate (ER), Interest Rate (%Δ IR), and Capital Structure (CS). Data wer...

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Bibliographic Details
Published in:Revista evidenciação contábil & finanças 2021-08, Vol.9 (2), p.133-142
Main Authors: Franco Lucas, Caio Augusto, Noriller, Rafael Martins, Hall, Rosemar José, Aparecida Farias de Souza Nogueira, Maria, Regis Botelho, Ducineli
Format: Article
Language:English
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Summary:This article analyzes the relationship between macroeconomic variables and the capital structure of public finance and insurance companies in Latin America and Asia. The variables used were: Gross Domestic Product (GDP), Exchange Rate (ER), Interest Rate (%Δ IR), and Capital Structure (CS). Data were analyzed annually from 2010 to 2018 by static panel analysis and multiple regression using the Newey-West estimator. Interest rate and exchange rate were negatively correlated with CS. However, GDP was not significantly correlated with CS at 10% probability. It is concluded that macroeconomics interferes with the capital structure of financial institutions in Latin America and Asia.
ISSN:2318-1001
2318-1001
DOI:10.22478/ufpb.2318-1001.2021v9n2.51666