Abstract

SANDOVAL ALAMOS, Eduardo  and  OLEA RODRIGUEZ, Fernando. Use of financial leverage and performance in the stock markets. The case of public limited companies from Brazil, Chile, Mexico and Peru. Cuad. Econ. [online]. 2022, vol.41, n.86, pp.129-157.  Epub Oct 07, 2022. ISSN 0121-4772.  https://doi.org/10.15446/cuad.econ.v41n86.83392.

Considering transaction costs, this article evaluates the performance of active portfolio strategies using ordinary least squared (OLS) and seemingly unrelated regressions (SUR) techniques, for the stock markets of Brazil, Chile, Mexico, and Peru. The first strategy includes portfolios of companies with good use of debt and the second strategy considers the opposite situation, both based on the financial statements issued under International Financial Information Standards (IFRS). The results indicate that on one hand, previous strategies do not show a superior performance to their respective stock market, and on the other hand that only in Chile, the first strategy outperforms the second.

Keywords : Transaction costs; performance; use of financial leverage.

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