Capital Structure and Share Liquidity in Latin America: A Panel Data Approach

  •  Patrick da Silva    
  •  Flávio Leonel de Carvalho    
  •  Andreza Aparecida Palma    


The objective of this study was to analyze the existence of a relationship between stock liquidity and capital structure of publicly traded companies in Latin America, specifically Argentina, Brazil, Chile, Colombia, Mexico, and Peru, between 2011 and 2018. For data analysis, the panel data methodology was used, selected from the pooled data models, fixed effects and random effects. The Presence, Trading Volume, and Liquidity Index on the stock exchange were used as dependent variables. Indebtedness Index, Size, Tangibility, Market to Book, and ROA were the independent variables used. The results indicate a positive relationship between size and future expectation of the firms, measured through the Market to Book, and all liquidity indicators on the stock exchange. Regarding the presence on the stock exchange, there was a negative relationship with indebtedness, tangibility, and level of profitability of the analyzed companies.

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