The main objective of this project is to analyze the relationship between investment decisions and their sources of financing (e.g., internal cash flows, debt, equity), properly controlled by measures of financial constraints. Some important factors will be analyzed in this project, especially those derived from exogenous events (e.g., specific legislation concerning capital market) that may have significant effects on the level of financial constraints. In this context, we intend to examine how the development of Brazilian capitals markets - both the stock market as well as the debt market - can contribute to the reduction of financial constraints and thus providing better conditions for companies to finance their investment needs and growth. Ultimately, we hope this project may contribute to a broader discussion about public policies that are capable of promoting the development of the Brazilian financial market and, as a result, the economic and social development of our country.
News published in Agência FAPESP Newsletter about the scholarship: