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To privatize or not? Here it is the question: an empirical study on the profitability of the companies of mixing economy and private companies listed in the São Paulo Stock Exchange in the period from 1995 to 2007

The objective of this work is to verify if the profitability of the companies of mixing economy is different of the profitability of the private companies, taking in consideration the size of the companies and the cost of the debt. They had been analyzed the companies listed in the São Paulo Stock Exchange, understanding the period from 1995 to 2007. The data had been collected in software Economática. Thus, it was tried to answer the following question: the Brazilian companies of mixing economy have similar performance to the one of the private companies? For the test of the hypothesis, regression with data in panel was used having as proxy: for the profitability the profit before the income tax, for the size log of asset and for the cost of capitation of resources the cost of the debt. As for the differentiation of profitability between companies of mixing economy and companies of private economy the results corroborate the findings of previous studies. It was observed in this study that as much the size than the cost of the debt is related to the profitability of the companies, but the fact of the Brazilian company to be of mixing or private economy does not intervene with its profitability.

profitability; cost of the debt; size; mixing economy; private economy


Fundação Getulio Vargas Fundaçãoo Getulio Vargas, Rua Jornalista Orlando Dantas, 30, CEP: 22231-010 / Rio de Janeiro-RJ Brasil, Tel.: +55 (21) 3083-2731 - Rio de Janeiro - RJ - Brazil
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