RELATIONSHIP BETWEEN THE MARKET TIMING AND CAPITAL STRUCTURE OF TECHNOLOGY FIRMS: A STUDY USING THE THEORY OF GAMES

Abstract

This study aimed to investigate the relationship between the market timing and the capital structure of high technology companies in Brazil and Chile. The methodology used in the research was characterized as descriptive, with documental procedures and quantitative approach of the problem question. The method used was descriptive statistics, Pearson and Kendall correlation, as well as Game Theory. The data for analysis were collect in the reports of the financial statements, made available in the Thomson® database, from 2006 to 2013. The results showed that the relation between the PER index and the number of companies that increased their paid-in capital were not correlated to evidence the market timing behavior in both Brazil and Chile. The relationship between long-term debt and profitability was positive, being in agreement with the theory of trade-off in both countries. The relationship between capital structure and market timing was not correlated through the Game Theory, since there was little alternation of company positions in established game rankings, indicating that high-tech companies in Brazil and Chile do not present market behavior Timing in the period from 2006 to 2013, that is, these companies do not issue new shares when the market price is high.