This article investigates the preference of non-financial Brazilian firms for public issues or private placements of equity as a source of capital from 1995 to 2002. Empirical evidence is presented by means of descriptive statistics, followed by the development of Multiple Discriminant Analysis and Logistic Regression models. The results reveal greater propensity to use private issues for firms with lower returns on equity and profits, smaller issues, high control concentration, more debt, less liquid stocks; and for holding and State-owned companies.
Capital market; stock issues; private placements; public offerings; capital structure
