Relationship between EBITDA and capital structure: a study with listed companies in IBrX50

The capital structure of organizations and their influencing factors have been a topic of interest and discussion in organizational and academic scope in recent years. In the academic world the composition of the capital structure has been explored under various theoretical lenses whose main scope is to identify what companies do to define their capital structure. Thus, the present study aimed to analyze the relationship between EBITDA (Earnings before interest, taxes, depreciation and amortization) and capital structure of the companies listed on Brazil 50 Index (IBrX 50). The sample analyzed was formed by 28 companies, corresponding to the periods from 2014 to 2017. From descriptive and multivariate statistics, the results showed that there is a negative and significant relationship between EBITDA and capital structure, showing that the larger the capital structure the lower the EBITDA. This result is in keeping with the Pecking Order Theory, because according to it, high-profit companies contract less debt by using the profit generated as a source of financing, unlike less profitable companies that need to seek third-party capital as sources of financing.