Capital structure strategies through the lens of ESG: assessing trends between Brazil and China

Authors

DOI:

https://doi.org/10.21680/2176-9036.2026v18n1ID38231

Keywords:

Esg, Governança Corporativa, Estrutura de Capital, trade-off, pecking order

Abstract

Objective: This paper aims to analyze, in a comparative way, whether the adoption of Environmental, Social and Corporate Governance (ESG) practices by Brazilian and Chinese companies influences the choice of a capital structure in accordance with the precepts of the Pecking Order Theory.

Methodology: Descriptive research with a quantitative approach, utilizing data collected from the Refinitiv database on 210 companies between 2018 and 2022. Descriptive analyses and balanced panel data models were applied to obtain the results.

Results: The paper revealed that among the companies analyzed with complete ESG data and that were segmented according to their score levels, both those with robust practices and those with lower scores showed behaviors aligned with the Pecking Order Theory, suggesting a general preference for internal financing. In addition, no significant differences were identified in the capital structure approaches between Brazilian and Chinese companies, which indicates a uniform impact of ESG practices.

Study Contributions: The study contributes to the understanding of sustainable finance by demonstrating the effect of ESG practices on capital structure decisions in emerging markets. It highlights the centrality of sustainability in financing strategies, making it relevant for academics, managers, investors, and policymakers. The research underscores the importance of integrating sustainable factors into financial decisions by comparing companies with varying ESG scores.

 

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Author Biographies

Daniela Cristina de Andrade, Universidade Estadual do Oeste do Paraná – UNIOESTE.

Mestranda no Programa de Pós-Graduação Strictu Sensuem Contabilidade (PPGC) da Universidade Estadual do Oeste do Paraná – UNIOESTE.

Brunna Mendonça Braga, Universidade Estadual do Oeste do Paraná – UNIOESTE.

Mestranda no Programa de Pós-Graduação Strictu Sensu em Contabilidade (PPGC) da Universidade Estadual do Oeste do Paraná – UNIOESTE.

Clóvis Fiirst, Universidade Estadual do Oeste do Paraná – UNIOESTE

Doutor em Contabilidade e Administração pela Universidade Regional de Blumenau-SC - FURB e Professor do programa de Pós-Graduação Strictu Sensuem Contabilidade (PPGC) da Universidade Estadual do Oeste do Paraná – UNIOESTE.

Gilmar Ribeiro de Mello, Universidade Estadual do Oeste do Paraná – UNIOESTE.

Doutor em Controladoria e Contabilidade pela Universidade de São Paulo - FEA/USP e Professor do programa de Pós-Graduação Strictu Sensu em Contabilidade (PPGC) da Universidade Estadual do Oeste do Paraná – UNIOESTE.

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Published

05-01-2026

How to Cite

Andrade, D. C. de, Braga, B. M., Fiirst, C. ., & Mello, G. R. de. (2026). Capital structure strategies through the lens of ESG: assessing trends between Brazil and China. REVISTA AMBIENTE CONTÁBIL - Universidade Federal Do Rio Grande Do Norte, 18(1), 101–127. https://doi.org/10.21680/2176-9036.2026v18n1ID38231

Issue

Vol. 18 No. 1 (2026): Jan./Jun.

Section

Section 1: Accounting Applied to the Business Sector (S1)

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