RT info:eu-repo/semantics/article
T1 The zero-debt puzzle in BRICS countries: Disentangling the financial flexibility and financial constraints hypotheses
A1 Saona, Paolo
A1 San Martin, Pablo
A1 Vallelado González, Eleuterio
K1 Zero leverage
K1 BRICS
K1 Financial flexibility
K1 Financial restrictions
K1 Capital structure
K1 Bivariate probit model
K1 5303.01 Contabilidad Financiera
AB This study analyzes the zero-debt decisions of BRICS firms using a bivariate probit model. The leading hypotheses are financial flexibility and financial constraints. On the demand-side, our findings reveal that managerial debt aversion, early lifecycle stage, growth opportunities, solvency, and concentrated ownership contribute to the lack of debt. Similarly, a country's institutional quality correlates with firms' debt-free status. On the supply-side, creditors fund companies with poor financial records in countries with robust markets and economic freedom. Financial flexibility and restrictions leading to zero debt are linked to firm and institutional characteristics in emerging countries.
PB Elsevier
SN 1566-0141
YR 2024
FD 2024
LK https://uvadoc.uva.es/handle/10324/68063
UL https://uvadoc.uva.es/handle/10324/68063
LA eng
NO Emerging Markets Review, julio 2024, vol.61, 101163
NO Producción Científica
DS UVaDOC
RD 30-dic-2024