Monday, 7/8/2024
The
School of Economics and Management of the University of Minho (EEG) is proud to
announce that Samuel Lyncon Leandro de Lima, a PhD student in Management,
"branch" of Finance, PhD in International Cotutela: EEG-University of
Minho and Regional University of Blumenau - FURB, presented his doctoral thesis
entitled "Effect of capital structure on the relationship between
idiosyncratic risk and market performance", on July 3, 2024.
According
to the abstract presented by the student, the objective of the study was to
evaluate the moderation of the capital structure in the relationship between
idiosyncratic risk and the market performance of listed companies. The results
of the research showed that both the decisions on the definition and the
decisions on the adjustment of the capital structure have a moderating effect
on the relationship between idiosyncratic risk and the market performance of
listed companies. In particular, the results allow us to conclude that when
managers increase the costly debt in the capital structure, they must consider
the moderating effect of their decisions to compensate the investor with the
increase in the company's market performance, given the added idiosyncratic
risk. In addition, the results allow us to document that the joint evaluation
of the effects of the capital structure, by onerous debt and idiosyncratic
risk, is relevant to explaining the market performance of companies, so while
the decisions on the capital structure measured by total debt did not present a
consensus, the onerous part, for investment purposes, was significant in all
models.
The
doctoral thesis was supervised by Manuel José da Rocha Armada, Professor
Emeritus of the Management Department of the School of Economics and Management
of the University of Minho and Tarcísio Pedro da Silva of the Regional
University of Blumenau - FURB.
EEG
congratulates Samuel Lyncon Lima on his defense and wishes him every
professional and personal success!
Gabinete de Comunicação
Escola de Economia e Gestão
Universidade do Minho
Telefone: 253 604541
Email: gci@eeg.uminho.pt
