Analysis of the degree of financial leverage of companies listed on B3 during the pre-pandemic and pandemic periods

Abstract

This study's main objective is to analyze the degree of financial leverage of Brazilian companies listed on B3 in the pre-pandemic and pandemic periods. The sample includes 120 companies selected according to the list of sectors most affected by the COVID-19 pandemic, according to the Ministry of Economy, with 600 observations in total. Data was collected each year from 2018 to 2022. From the GAF calculation, it was possible to analyze the behavior of financial leverage in different companies, sectors and periods. The results prove that, despite the financial crisis caused by the COVID-19 pandemic, Gas and Electricity services registered a significant increase both in the period before the pandemic and during the pandemic. This corroborates studies that indicate that the pandemic had an impact on the functioning of some companies, but in general, it did not have major impacts in relation to previous results. Another finding is that the sector in which a company operates is crucial in determining its level of leverage. However, the health crisis had different consequences in different sectors of the economy, therefore, the impact of the pandemic on a company can be quite different in relation to the sector in which it operates.