Exploring the Link Between Metal Prices and Capital Structure in Latin American Mining-Metallurgy Companies

Resumo

This work examines the short and medium-term effects of fluctuations in international prices of various mineral (gold, silver, copper, zinc) and metallurgical (aluminum, steel) products on the capital structure of companies in the mining and mining industry. metallurgical company listed on the stock markets of Argentina, Brazil, Mexico and Peru. Quarterly data is used for the period 2000-2014. Consistent with the theory of the Dynamic Pecking Order, the results of the econometric analysis confirm that the profitability and prices of products are negatively related to the financial leverage of companies.