The use of financial tools in a sample of Uruguayan firms

• Main Authors: Roldós, Margarita, Blanco, Alejandra, de la Vega, Mauro, Legazcue, Natalia, Seijas, María Nela, Giradini, Juan José, Álvarez-Vaz, Ramón, Vernazza Mañan, Elena
• Format: Article
• Language: English
• Published: Asociación para la Formación y la Investigación en Ciencias Económicas y Sociales 2019-01-01
• Series: Finance, Markets and Valuation
• Subjects: corporate finance; financial tools; uruguay
• Online Access: https://journalfmv.com/en/archive/2019/1/a153fdb99b.html
• ISSN: 2530-3163

We survey a sample of the Uruguay firms in the business sector, about the use of financial instruments as: Debt Structure, Net Value Present, Internal Rate of Return, Payback Period and other capital budgeting instruments. We follow the line research of Graham and Harvey (2001) and others works that replicate the same line. Using a logistic regression model, we arrive to the result that use of the financial tools is limited, results that are in sintony with other emerging economies. We observed that use of the financial tools is related with the size of the company, the setting of a debt target, the level of education and training, as well as the seniority of the person responding, as explanatory factors of greater use of the selected tools.