Determinants of Indebtedness in the Brazilian Telecommunications Sector

The aim of this study was to analyse the determinants of the indebtedness of companies in the Brazilian telecommunications sector in the light of the Static Trade-Off Theory (STT) and the Pecking Order Theory (POT). The methodology used was multiple regression analysis with panel data for the period from 2002 to 2013 using short-term debt and long-term debt as dependent variables and profitability tangibility growth size and risk as independent variables. The results showed a negative relationship between the profitability size and risk variables for short-term debt and a negative relationship between size and risk for long-term debt.