Accruals mispricing versus risk: Analyzing the influence of external monitoring in Brazil

IF 9.4 3区 管理学 Q1 BUSINESS, FINANCE Journal of International Financial Management & Accounting Pub Date : 2021-06-23 DOI:10.1111/jifm.12136
Vinícius Gomes Martins, Márcio André Veras Machado, Paulo Aguiar do Monte
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引用次数: 4

Abstract

In this paper, we examine the role of external monitoring as an alternative mechanism of corporate governance pertaining to the risk and mispricing of accruals in the Brazilian market. The results provide evidence of the accruals anomaly for companies with low external monitoring and evidence that is stronger when evaluating the discretionary component of accruals. Our analysis does not support the conclusion that total and discretionary accruals represent price risk factors, which suggests that the evidence of anomaly results from mispricing. Our evidence contributes to the growing literature on accruals pricing in emerging markets, by adding elements such as the influence of external monitoring and the level of investor sophistication, hereby represented by market analysts and institutional investors. Our study provides additional evidence that the presence of these intermediary agents creates an external layer of control capable of contributing positively to the process of disclosure and pricing of financial information. Thus, the role of such intermediaries as external monitors in emerging markets can be potentially significant for correctly pricing accruals. While Brazil has its own unique institutional characteristics, our findings confirm the evidence obtained for other countries.

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应计项目错定价与风险:分析巴西外部监测的影响
在本文中,我们研究了外部监控作为公司治理的一种替代机制的作用,该机制与巴西市场中应计收益的风险和错误定价有关。研究结果为外部监控较低的公司提供了应计项目异常的证据,并在评估应计项目的可自由支配成分时提供了更有力的证据。我们的分析不支持总应计利润和可支配应计利润代表价格风险因素的结论,这表明异常的证据来自错误定价。我们的证据通过增加外部监测的影响和投资者的成熟程度等因素(即市场分析师和机构投资者),为新兴市场中应计项目定价的文献越来越多做出了贡献。我们的研究提供了额外的证据,证明这些中介机构的存在创造了一个外部控制层,能够对财务信息的披露和定价过程做出积极贡献。因此,在新兴市场中,这些中介机构(如外部监督者)的作用可能对正确定价应计收益具有重要意义。虽然巴西有自己独特的制度特征,但我们的研究结果证实了其他国家获得的证据。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
9.10
自引率
2.00%
发文量
23
期刊介绍: The Journal of International Financial Management & Accounting publishes original research dealing with international aspects of financial management and reporting, banking and financial services, auditing and taxation. Providing a forum for the interaction of ideas from both academics and practitioners, the JIFMA keeps you up-to-date with new developments and emerging trends.
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