The effects of portfolio investments flows in firms’ capital structure: a study of Brazilian firms from retail and textile sectors

@inproceedings{Loncan2012TheEO,
  title={The effects of portfolio investments flows in firms’ capital structure: a study of Brazilian firms from retail and textile sectors},
  author={Tiago Rodrigues Loncan},
  year={2012}
}
Prior research suggested that the flow of portfolio investments reduces the equity cost of firms, by a reduction in the expected return of stocks that follows from the sharing of risk associated to the financial asset between domestic and international investors. The objective of the study was to verify whether the flow of portfolio investments causes firms to adjust their levels of leverage, reflecting a marginal reduction of own capital cost relative to external capitals. The method employed… CONTINUE READING

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