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Abstract
This article aims to analyze the relationship between behavioral finance and capital structure through the development of three propositions. The methodology of this work is qualitative and exploratory and was carried out through three semi-structured interviews with financial directors of large Brazilian companies. The results of this research reveal the interaction between quantitative metrics and behavioral biases in financial decision-making. Respondents emphasize metrics such as IRR, Payback and NPV, but their responses also highlight the influence of behavioral biases. Risk aversion, influenced by the economic scenario, affects the investment approach. The pandemic triggered behavioral changes, with a search for collaboration and precaution. Doubts about debt reflect the debt aversion bias and the scarcity mindset. These results underscore the importance of considering both quantitative and behavioral aspects in corporate financial decisions. In conclusion, the work shows the complex interrelationship between quantitative metrics and behavioral biases in financial decisions. This hybrid approach reveals the influence of risk aversion, context changes and uncertainty in decision-making. This article contributes to the theory by elaborating three propositions to be tested quantitatively and for managerial practice, since it can help finance executives to understand how their biases can impact the capital structure, and consequently, the results of firms.
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