PROFITABILITY AND LEVERAGE IN FAMILY-MANAGED AND NON-FAMILY FIRMS

Abstract The study examined the influence of profitability on the capital structure of Brazilian firms with both family and non-family management. The sample included 191 companies analyzed between 2011 and 2024 using the Generalized Method of Moments (GMM) System. The results indicate that Brazilian firms tend to reduce their debt levels as they become more profitable. However, the findings also suggest that family management does not intensify this relationship. This study contributes to the literature by demonstrating that higher profitability encourages managers to reduce debt, regardless of whether the firm is family-run or not. Keywords: family management; return on assets; total debt.