Open AccessMACROECONOMIC VARIABLES AND CAPITAL STRUCTURE: PUBLIC FINANCE AND INSURANCE IN LATIN AMERICA AND ASIA
Author(s) -
Caio Augusto Franco Lucas,
Rafael Martins Noriller,
Rosemar José Hall,
Maria Aparecida Farias de Souza Nogueira,
Ducineli Régis Botelho
Publication year - 2021
Publication title -
revista evidenciação contábil and finanças
Language(s) - English
Resource type - Journals
ISSN - 2318-1001
DOI - 10.22478/ufpb.2318-1001.2021v9n2.51666
Subject(s) - economics , gross domestic product , latin americans , exchange rate , interest rate , panel data , monetary economics , macroeconomics , econometrics , political science , law
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.