Open AccessTHE CAPITAL STRUCTURE AS A RESOURCE AND THE EFFECT ON PERFORMANCE OF FIRMS<br>http://dx.doi.org/10.5585/riae.v9i1.1661
Author(s) -
Sílvio Parodi Oliveira Camilo,
Wlamir Gonçalves Xavier,
Rodrigo Bandeira de Mello,
Rosilene Marcon
Publication year - 2010
Publication title -
revista ibero-americana de estratégia
Language(s) - English
Resource type - Journals
ISSN - 2176-0756
DOI - 10.5585/ijsm.v9i1.1661
Subject(s) - capital structure , leverage (statistics) , return on assets , business , resource based view , equity (law) , return on equity , empirical research , industrial organization , resource (disambiguation) , competitive advantage , economics , environmental economics , finance , marketing , profitability index , computer science , debt , computer network , philosophy , epistemology , machine learning , political science , law
This article aims to expand the current theoretical and empirical understanding of the capital structure as an important resource to research a firms performance, from a financial and strategic perspective. Empirical research on resource-based-view (RBV) has either focused on the effects of technological resources and innovative capacity or resources associated with operational efficiency. One feature deserving attention in turbulent environments, such as in Brazil,is the capital structure, as the combination of funding sources is a vital decision. Data was collected from Bovespa listed firms between 2002 and 2007. Two performance constructs were suggested and assessed; firm performance was measured through return on operational assets (ROA) and return on equity (ROE). Results provide empirical evidence that decisions concerning financial leverage (DFL) are relevant to enhance competitive advantage. This study was inconclusive regarding the capital structures influence on the ROA.