INFLUENCE OF ESG ON THE CAPITAL STRUCTURE OF PUBLICLY-LISTED COMPANIES IN LATIN AMERICAN COUNTRIES

Abstract

The objective of this study was to analyze the influence of the adoption of ESG practices on the capital structure of publicly traded companies in Latin American countries. The research is characterized as descriptive, with a quantitative approach. The sample included 602 publicly traded companies from Brazil, Chile, Mexico and Peru, from 2018 to 2022. Descriptive statistics and multiple linear regressions were used for the analysis. The results indicated a positive relationship between the ESG index and the capital structure of Brazilian and Mexican companies, while for Chilean companies, the influence was negative. In the case of Peruvian companies, the statistical tests were not significant. The individual analysis of each ESG pillar did not reveal significant differences in relation to the results of the overall analysis. The findings suggest that companies with higher ESG indexes tend to finance their practices through debt, in line with the Trade-Off theory. The study contributes theoretically by deepening the relationship between ESG and capital structure in Latin American countries, exploring the influence on debt and offering new perspectives on sustainability financing. In practice, it highlights how ESG initiatives can be integrated into capital structures. Socially, it encourages the private sector to adopt strategies aligned with sustainable development.