ARTÍCULO
TITULO

Reorganization Requests in Brazil: An explanation with Economic Variables

Vinicius Augusto Brunassi Silva    
Joelson Oliveira Sampaio    
Humberto Gallucci Netto    

Resumen

This paper examines the relation between reorganization requests and macroeconomic variables in Brazil. Using a sample of 131 reorganization plans, data on the number of reorganization requests and macroeconomic variables between 2005 and 2015, our results suggest that: i) high cost of capital and financing difficulty are among the main reasons identified by the company for reorganization. The result is consistent for companies from different size and industry; ii) there is a positive relation between the cost of capital of companies and the number of reorganization requests; iii) there is a negative relation between the total credit available in the economy and the number of reorganization requests; iv) we identify a positive relation between the exchange rate and the number of reorganization requests.

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