The volatility of cash flow and cash availability in the capital structure of Brazilian industrial companies
DOI:
https://doi.org/10.5007/2175-8069.2021.e78069Abstract
This study aims to verify the effect of cash flow volatility and cash availability volatility on the capital structure of Brazilian industrial companies. Descriptive, documentary, and quantitative research were developed. The sample included 77 Brazilian industrial companies listed in Brasil, Bolsa, Balcão (B3), with data from 2014 to 2018, which generated a total of 385 observations. The economic and financial information was extracted from the Economática® database. The results show that companies with greater Cash Flow Volatility (CFV) and greater Cash Availability Volatility (CAV) have higher indebtedness levels, which are also more extensive in the short term. Furthermore, as a methodological difference, it was observed that when the Cash Flow Volatility derives from a positive trend, according to the growth of flows generated in recent periods, creditors tend to observe this favorably and provide more resources to companies under these conditions, including a longer-term for payment.
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