This article offers a comparative analysis of capital structure patterns of firms in emerging markets by means of an analytical survey of the literature that employs cross section samples of firms from many countries and analyses them jointly. This article does not focus on the analysis of capital structure on a country by country basis. Only listed firms are discussed. The influence of country level explanatory factors is compared to the explanatory power of industry level and firm level factors. The main deliverables are several stylized facts identified in the survey of the literature. Country level factors are not irrelevant even though firm level factors seem to dominate them. Yet, industry level factors are not very important. Debt ratios of emerging market firms have risen over time and the degree of creditor and investor protection have a favorable impact over them. The M&M hypotheses are only partially supported by the emerging market evidence.
Capital structure; corporate financing; Brazil; emerging markets; capital markets
