CAPITAL STRUCTURE, POLITICAL CONNECTIONS, AND CORPORATE GOVERNANCE: EVIDENCE FROM BRAZILIAN COMPANIES
Political Connections; Capital Structure; Corporate Governance; Brazilian Companies
This dissertation aims to examine the relationship between political connections and the capital structure and corporate governance of Brazilian companies, and is structured in two chapters. The first chapter analyzes the impacts of political connections on capital structure based on Market Timing Theory. This chapter analyzes Brazilian publicly traded companies through an event study, applying the Difference-in-Differences (DiD) method with robust standard errors. The second chapter aims to analyze the effects of political connections on the corporate governance of Brazilian publicly traded companies, using agency theory as a basis. Similar to the first chapter, it proposes using the same methodological approach, also employing robust standard errors.