The impact of COVID-19 on Portuguese firms’ capital structure

Abstract

This dissertation studies the effect of COVID-19 on Portuguese firms’ capital structure. This paper finds that the pandemic has had a statistically and economically significant effect on the capital structure of Portuguese companies. Findings show that companies seem to have increased their leverage ratio and long-term debt during the pandemic years, 2020 and 2021. The results of this study contrast with previous literature about other crises, such as the global financial crisis of 2008-2009, and previous studies on the impact of economic uncertainty on capital structure behavior. This possibly reflects the widespread fiscal, monetary, and prudential support throughout the pandemic.

Date of Award	26 Jan 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Diana Bonfim (Supervisor)