Strategies of securitization in the construction sector: determinants and impacts on economic and financial performance

Abstract

The way of companies define their capital structure impacts their financial performance. Among the possibilities for financing there is securitization, which although it is a topic discussed in the academic environment, little attention has been given to its relationship with business performance (RIACHI et al., 2015). In Brazil, one of the sectors that most use this type of instrument is the civil construction sector. Thus, this work aimed to analyze the determinants of securitization strategies used by companies in the civil construction sector and the impacts on their economic and financial performance. The research used a quantitative approach and made use of the descriptive method, the sample was composed of 15 companies in the sector, the study covered the period from 2007 to 2015 and was carried out using the technique of regression analysis with balanced panel data. The main explanatory variable that determines the level of securitization was the cost of debt, reinforcing the hypothesis that companies with a higher cost of debt tend to use securitization more intensively. Regarding performance, it was found that the level of securitization influences the Price / Profit indicator, so this strategy can contribute to the creation of value.