Pub Date : 2021-04-26DOI: 10.1590/1808-057X202111780
D. Amorim, Marcos Antônio de Camargos
ABSTRACT The market price-earnings ratios differ from those of each share. Despite allowing for several pertinent analyses, authors have rarely addressed these valuation ratios in the Brazilian context. We can use it to evaluate whether the stock market is overvalued (undervalued). In this article, we analyze the mean reversion in a price-earnings ratio based on Ibovespa and identify periods of overvaluation (undervaluation) in the Brazilian stock market. We considered the period from December 2004 to June 2018. Until then, there are no studies that sought to identify periods of overvaluation (undervaluation) in this market. In the analyses, we used non-linear econometric methods. We analyzed the mean reversion in the price-earnings ratio using a unit root test that incorporates a Fourier function in the deterministic term. We identified the periods of market overvaluation (undervaluation) through the regime probabilities obtained from a Markov Switching model, estimated with the price-earnings ratio. The results evidenced that the price-earnings ratio based on the Ibovespa has a non-linear trend and exhibits mean reversion. Thus, this valuation ratio should provide information on the future stock market returns, mostly when it is very dispersed in relation to historical standards. We identified four periods of market overvaluation interposed with five periods of market undervaluation. Mean reversion in the price-earnings ratio contraposes the Efficient Markets Hypothesis. There are no other applications of unit root tests with a Fourier function in the Brazilian context. Furthermore, adopting a Markov Switching model to identify periods of market overvaluation (undervaluation) consists of a methodological contribution. Investors can take advantage of the identification of these periods to establish investment strategies.
{"title":"Mean reversion in a price-earnings ratio and under / overvaluation in the Brazilian stock market","authors":"D. Amorim, Marcos Antônio de Camargos","doi":"10.1590/1808-057X202111780","DOIUrl":"https://doi.org/10.1590/1808-057X202111780","url":null,"abstract":"ABSTRACT The market price-earnings ratios differ from those of each share. Despite allowing for several pertinent analyses, authors have rarely addressed these valuation ratios in the Brazilian context. We can use it to evaluate whether the stock market is overvalued (undervalued). In this article, we analyze the mean reversion in a price-earnings ratio based on Ibovespa and identify periods of overvaluation (undervaluation) in the Brazilian stock market. We considered the period from December 2004 to June 2018. Until then, there are no studies that sought to identify periods of overvaluation (undervaluation) in this market. In the analyses, we used non-linear econometric methods. We analyzed the mean reversion in the price-earnings ratio using a unit root test that incorporates a Fourier function in the deterministic term. We identified the periods of market overvaluation (undervaluation) through the regime probabilities obtained from a Markov Switching model, estimated with the price-earnings ratio. The results evidenced that the price-earnings ratio based on the Ibovespa has a non-linear trend and exhibits mean reversion. Thus, this valuation ratio should provide information on the future stock market returns, mostly when it is very dispersed in relation to historical standards. We identified four periods of market overvaluation interposed with five periods of market undervaluation. Mean reversion in the price-earnings ratio contraposes the Efficient Markets Hypothesis. There are no other applications of unit root tests with a Fourier function in the Brazilian context. Furthermore, adopting a Markov Switching model to identify periods of market overvaluation (undervaluation) consists of a methodological contribution. Investors can take advantage of the identification of these periods to establish investment strategies.","PeriodicalId":37984,"journal":{"name":"Revista Contabilidade e Financas","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67200001","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-02DOI: 10.1590/1808-057X202112150
Loveley Talans, A. Minardi
The objective of this study was to verify the effects of the lock-up expiration on the behavior of prices and volumes in IPOs and follow-ons in the Brazilian market and to identify factors that may explain the existence and magnitude of abnormal returns. Few studies were found to investigate this phenomenon in Brazil, which were limited to the analysis of IPOs without examining the effect on follow-ons and the construction of abnormal accumulated returns compared to the Ibovespa, instead of benchmarks appropriate to each stock’s risk. Lock-up clauses exist to mitigate the problem of information asymmetry in public offers but expose investors to the risk of a price drop after its expiration. Understanding the magnitude of this impact is essential for investors in the stock market. Through this article’s analysis, investors will be able to estimate the magnitude of the price variation around the lock-up expiration, what factors explain the returns, and whether there are indications of short selling limitations. The event study method was applied, comparing returns to the Ibovespa and an individual reference portfolio composed of similar companies. Database: 313 offers that occurred on the Brazilian stock market between 2004 and 2019. Evidence of volume increase was found around the expiry of lock-up in IPOs, but the price drop was verified only in companies with private equity funds as shareholders. In follow-ons, in which the asymmetry of information about the issuer is less pronounced, the opposite situation was verified. There are several extensions and lock-up formats worldwide, which provide different impacts on volume and price. This article contributes to the literature when analyzing this event in Brazil and extending the analysis to follow-ons. A possible interpretation for the phenomenon is the restrictions on shortselling in the Brazilian market.
{"title":"Behavior of stock prices due to the lock-up period expiration in IPOs and follow-ons","authors":"Loveley Talans, A. Minardi","doi":"10.1590/1808-057X202112150","DOIUrl":"https://doi.org/10.1590/1808-057X202112150","url":null,"abstract":"The objective of this study was to verify the effects of the lock-up expiration on the behavior of prices and volumes in IPOs and follow-ons in the Brazilian market and to identify factors that may explain the existence and magnitude of abnormal returns. Few studies were found to investigate this phenomenon in Brazil, which were limited to the analysis of IPOs without examining the effect on follow-ons and the construction of abnormal accumulated returns compared to the Ibovespa, instead of benchmarks appropriate to each stock’s risk. Lock-up clauses exist to mitigate the problem of information asymmetry in public offers but expose investors to the risk of a price drop after its expiration. Understanding the magnitude of this impact is essential for investors in the stock market. Through this article’s analysis, investors will be able to estimate the magnitude of the price variation around the lock-up expiration, what factors explain the returns, and whether there are indications of short selling limitations. The event study method was applied, comparing returns to the Ibovespa and an individual reference portfolio composed of similar companies. Database: 313 offers that occurred on the Brazilian stock market between 2004 and 2019. Evidence of volume increase was found around the expiry of lock-up in IPOs, but the price drop was verified only in companies with private equity funds as shareholders. In follow-ons, in which the asymmetry of information about the issuer is less pronounced, the opposite situation was verified. There are several extensions and lock-up formats worldwide, which provide different impacts on volume and price. This article contributes to the literature when analyzing this event in Brazil and extending the analysis to follow-ons. A possible interpretation for the phenomenon is the restrictions on shortselling in the Brazilian market.","PeriodicalId":37984,"journal":{"name":"Revista Contabilidade e Financas","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67200575","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-01DOI: 10.1590/1808-057x202009800
V. C. Araújo, A. D. Góis, M. M. M. Luca, G. Lima
ABSTRACT Narcissism (NARC) in senior executives has a perceptible impact on corporate decision-making and strategies and is often associated with unethical and opportunistic behaviors, including tax avoidance (TA). In this study, we therefore evaluated the association between chief executive officer (CEO) NARC and TA in Brazilian public firms. By focusing on Brazil, an emerging economy regulated by code law, our investigation makes an important contribution to the accounting literature on TA. Most studies examining the relation between corporate TA and CEO personality profile have been conducted in common law countries. According to the literature, TA behaviors are influenced by tax system specifics. In addition, the home country’s level of economic development should be taken into account when quantifying corporate TA. These observations, and the lack of previous investigation focusing on Brazil, ratify the relevance of the study. Our study also provides tax authorities, auditors, and investors with tools to identify narcissistic behaviors predictive of corporate TA, which may demand precautionary measures on part of business partners. The sample consisted of 68 Brazilian public firms (382 observations), covering the period 2010-2017, and a robust regression model with panel data was used. TA and NARC were measured with secondary data according to the literature. Our findings show a positive correlation between CEO NARC and TA. Executives with this personality trait come across as bold or aggressive, thus more prone to adopt TA strategies, as confirmed in the present study. The study contributes to the literature by demonstrating how a personality disorder like NARC affects corporate tax policies, with potential damage to corporate reputation.
{"title":"CEO narcissism and corporate tax avoidance,","authors":"V. C. Araújo, A. D. Góis, M. M. M. Luca, G. Lima","doi":"10.1590/1808-057x202009800","DOIUrl":"https://doi.org/10.1590/1808-057x202009800","url":null,"abstract":"ABSTRACT Narcissism (NARC) in senior executives has a perceptible impact on corporate decision-making and strategies and is often associated with unethical and opportunistic behaviors, including tax avoidance (TA). In this study, we therefore evaluated the association between chief executive officer (CEO) NARC and TA in Brazilian public firms. By focusing on Brazil, an emerging economy regulated by code law, our investigation makes an important contribution to the accounting literature on TA. Most studies examining the relation between corporate TA and CEO personality profile have been conducted in common law countries. According to the literature, TA behaviors are influenced by tax system specifics. In addition, the home country’s level of economic development should be taken into account when quantifying corporate TA. These observations, and the lack of previous investigation focusing on Brazil, ratify the relevance of the study. Our study also provides tax authorities, auditors, and investors with tools to identify narcissistic behaviors predictive of corporate TA, which may demand precautionary measures on part of business partners. The sample consisted of 68 Brazilian public firms (382 observations), covering the period 2010-2017, and a robust regression model with panel data was used. TA and NARC were measured with secondary data according to the literature. Our findings show a positive correlation between CEO NARC and TA. Executives with this personality trait come across as bold or aggressive, thus more prone to adopt TA strategies, as confirmed in the present study. The study contributes to the literature by demonstrating how a personality disorder like NARC affects corporate tax policies, with potential damage to corporate reputation.","PeriodicalId":37984,"journal":{"name":"Revista Contabilidade e Financas","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49077278","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-01DOI: 10.1590/1808-057x201910040
Alex A. T. Rathke
We investigate tax-induced profit shifting in Brazil and the impact of tax havens on the shifting behavior of firms. Profit shifting research in Brazil is virtually non-existent, although the shifting incentives in Brazil are prominent. Our research fills this gap with evidences in the novel Brazilian context. Profit shifting is a tax-minimization strategy where multinational enterprises perform intra-firm transactions to allocate taxable profits to low-tax locations. Brazil combines a remarking set of profit shifting incentives, especially a high corporate tax rate, extremely complex tax system, and distinguished transfer pricing rules. Further researches may leverage from the shifting incentives in Brazil, since it provides opportunities to investigate additional factors that affect the shifting behavior of firms. We analyze 989 transaction-by-country observations for the period of 2010-2017. Baseline analysis follows the robust least squares approach with controlling covariates. Linear estimate model derives from the conventional Cobb-Douglas production function, to analyze the impact of shifting incentives on profit maximization. We find that Brazilian firms have a high level of intra-firm transactions with related parties located in low-tax countries, especially with tax havens. It represents a strong evidence of profit shifting behavior in Brazilian firms.
{"title":"Profit shifting in Brazil and the impact of tax havens","authors":"Alex A. T. Rathke","doi":"10.1590/1808-057x201910040","DOIUrl":"https://doi.org/10.1590/1808-057x201910040","url":null,"abstract":"We investigate tax-induced profit shifting in Brazil and the impact of tax havens on the shifting behavior of firms. Profit shifting research in Brazil is virtually non-existent, although the shifting incentives in Brazil are prominent. Our research fills this gap with evidences in the novel Brazilian context. Profit shifting is a tax-minimization strategy where multinational enterprises perform intra-firm transactions to allocate taxable profits to low-tax locations. Brazil combines a remarking set of profit shifting incentives, especially a high corporate tax rate, extremely complex tax system, and distinguished transfer pricing rules. Further researches may leverage from the shifting incentives in Brazil, since it provides opportunities to investigate additional factors that affect the shifting behavior of firms. We analyze 989 transaction-by-country observations for the period of 2010-2017. Baseline analysis follows the robust least squares approach with controlling covariates. Linear estimate model derives from the conventional Cobb-Douglas production function, to analyze the impact of shifting incentives on profit maximization. We find that Brazilian firms have a high level of intra-firm transactions with related parties located in low-tax countries, especially with tax havens. It represents a strong evidence of profit shifting behavior in Brazilian firms.","PeriodicalId":37984,"journal":{"name":"Revista Contabilidade e Financas","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67199557","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-01DOI: 10.1590/1808-057x202009810
E. Junqueira, Reinaldo Rodrigues Camacho, Eric Ferreira dos Santos
ABSTRACT The aim of this study was to verify the level of disclosure of the survival, growth, and profitability (SGP) construct in the mission statements of Brazilian companies and in the collective discourse of different economic sectors, classified according to the “Biggest & Best” Annual published by Exame Magazine. The research seeks to fill the gap in the field by studying the disclosure of the SGP construct in the mission statements of large Brazilian companies. Considering the mission statement as the genesis of strategic planning, an analysis of the disclosure of the SGP construct allows for a discussion of the relevance of the contribution of the mission statement to the elaboration, implementation, and monitoring of that planning. The benefit of a mission statement aligned with the strategic planning lies in adequate communication to the stakeholders regarding the long-term SGP goals, based on the assumption that comprehensive and objective communication minimizes the risks of failures during the management process. Collective subject discourse (CSD) was used to develop a qualification metric of the constitutive elements of the organizational mission statements, enabling it to be identified whether the Brazilian companies, grouped into different economic sectors, are smoothing, concealing, or omitting the construct formed by the SGP components in their mission statements. This study investigates the presence or not of the SGP components in the collective discourse of mission statements of 220 large Brazilian companies. Most of the companies analyzed in the sample do not include SGP in their mission statements and those that do discuss it with discursive vagueness, lacking clarity in their disclosure of the components. For the academia, this finding contributes to understanding the constituent components of the mission statements of large Brazilian companies. For organizations, the findings indicate the need to reflect on the content to be used in the formulation of their mission statements.
{"title":"Analysis of the level of disclosure of the mission statements of large Brazilian companies,","authors":"E. Junqueira, Reinaldo Rodrigues Camacho, Eric Ferreira dos Santos","doi":"10.1590/1808-057x202009810","DOIUrl":"https://doi.org/10.1590/1808-057x202009810","url":null,"abstract":"ABSTRACT The aim of this study was to verify the level of disclosure of the survival, growth, and profitability (SGP) construct in the mission statements of Brazilian companies and in the collective discourse of different economic sectors, classified according to the “Biggest & Best” Annual published by Exame Magazine. The research seeks to fill the gap in the field by studying the disclosure of the SGP construct in the mission statements of large Brazilian companies. Considering the mission statement as the genesis of strategic planning, an analysis of the disclosure of the SGP construct allows for a discussion of the relevance of the contribution of the mission statement to the elaboration, implementation, and monitoring of that planning. The benefit of a mission statement aligned with the strategic planning lies in adequate communication to the stakeholders regarding the long-term SGP goals, based on the assumption that comprehensive and objective communication minimizes the risks of failures during the management process. Collective subject discourse (CSD) was used to develop a qualification metric of the constitutive elements of the organizational mission statements, enabling it to be identified whether the Brazilian companies, grouped into different economic sectors, are smoothing, concealing, or omitting the construct formed by the SGP components in their mission statements. This study investigates the presence or not of the SGP components in the collective discourse of mission statements of 220 large Brazilian companies. Most of the companies analyzed in the sample do not include SGP in their mission statements and those that do discuss it with discursive vagueness, lacking clarity in their disclosure of the components. For the academia, this finding contributes to understanding the constituent components of the mission statements of large Brazilian companies. For organizations, the findings indicate the need to reflect on the content to be used in the formulation of their mission statements.","PeriodicalId":37984,"journal":{"name":"Revista Contabilidade e Financas","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48872420","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-01DOI: 10.1590/1808-057x202010400
J. D. A. Carvalho, Jose Alves Dantas
ABSTRACT The aim of this study was to investigate the relationship between the market discipline and the capital buffers of Brazilian banks, identifying the channels through which this phenomenon materializes. The literature on market discipline and capital buffers has focused on developed countries. In Brazil, the topic is in its infancy, despite the characteristics of the market representing a relevant opportunity for broadening the related studies. Even with the specificities of an emerging market, the Brazilian banking industry provides a vast field for studying market discipline and capital buffers, given that the banks have leverage with investors, who are sensitive agents to alterations in the risk appetite of those entities. This study contributes to understanding the dynamics of the market discipline in the banking industry and to fostering discussions about the role of that private supervision in promoting the transparency and solidity of the financial system, providing support and guidelines for banking regulation. Using data from 193 Brazilian banks, from 2001 to 2017, the empirical tests included the estimation of panel data models, with the use of two-stage least squares (TSLS), following Ayuso et al. (2004), Flannery and Rangan (2004), and Nier and Baumann (2006). As the discipline exercised by the monitoring and influence of the market is not directly verifiable by external agents, six proxies were developed based on the cost of fundraising, on unsecured deposits, on subordinated debt, and on disclosure. The capital buffer was represented by the difference between the capital calculated by the institution and the minimum regulatory requirement. The results of the empirical tests revealed a positive association between the capital buffer and market discipline, providing evidence of the presence of that private supervision in the Brazilian banking industry.
{"title":"Relationship between market discipline and capital buffers in Brazilian banks,","authors":"J. D. A. Carvalho, Jose Alves Dantas","doi":"10.1590/1808-057x202010400","DOIUrl":"https://doi.org/10.1590/1808-057x202010400","url":null,"abstract":"ABSTRACT The aim of this study was to investigate the relationship between the market discipline and the capital buffers of Brazilian banks, identifying the channels through which this phenomenon materializes. The literature on market discipline and capital buffers has focused on developed countries. In Brazil, the topic is in its infancy, despite the characteristics of the market representing a relevant opportunity for broadening the related studies. Even with the specificities of an emerging market, the Brazilian banking industry provides a vast field for studying market discipline and capital buffers, given that the banks have leverage with investors, who are sensitive agents to alterations in the risk appetite of those entities. This study contributes to understanding the dynamics of the market discipline in the banking industry and to fostering discussions about the role of that private supervision in promoting the transparency and solidity of the financial system, providing support and guidelines for banking regulation. Using data from 193 Brazilian banks, from 2001 to 2017, the empirical tests included the estimation of panel data models, with the use of two-stage least squares (TSLS), following Ayuso et al. (2004), Flannery and Rangan (2004), and Nier and Baumann (2006). As the discipline exercised by the monitoring and influence of the market is not directly verifiable by external agents, six proxies were developed based on the cost of fundraising, on unsecured deposits, on subordinated debt, and on disclosure. The capital buffer was represented by the difference between the capital calculated by the institution and the minimum regulatory requirement. The results of the empirical tests revealed a positive association between the capital buffer and market discipline, providing evidence of the presence of that private supervision in the Brazilian banking industry.","PeriodicalId":37984,"journal":{"name":"Revista Contabilidade e Financas","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67199784","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-01DOI: 10.1590/1808-057x202009230
H. B. Morais, M. Macedo
The aim of this study was to verify whether the discretionary actions of managers to manage earnings can be captured by abnormal book-tax differences (ABTD). In Brazil, there are no studies with the disaggregated use of earnings management (EM) through operational choices as a proxy for discretionary decisions to be captured by ABTD. Moreover, the previous studies focus on the period before the International Financial Reporting Standards (IFRS) were required in Brazil or when they were still being implemented, which may change the context of earnings management in the country and, consequently, the relationship with ABTD. This study is relevant for accounting information users, such as investors, creditors, the tax authorities, and regulatory bodies, as the findings may help them to identify manager opportunism through earnings management. The identification that tax management can be affected by EM through accounting and operational decisions reveals that investors, creditors, the tax authorities, regulators, and auditors should remain vigilant against deteriorations in accounting information quality and, consequently, in the utility of that information. An analysis of 201 non-financial companies was carried out, covering 2012 to 2016, thus totaling 1,005 observations. Five panel data regression models were used: three to capture EM, one to identify ABTD, and one to relate these variables. A significant and positive relationship was revealed between accounting and operational EM and ABTD, indicating that companies that manage earnings upward have positive ABTD, and companies that manage earnings downward have negative ABTD. This research therefore contributes to identifying that ABTD captures the discretionary actions of managers related to EM through accounting and operational decisions.
{"title":"Relationship between earnings management and abnormal book-tax differences in Brazil","authors":"H. B. Morais, M. Macedo","doi":"10.1590/1808-057x202009230","DOIUrl":"https://doi.org/10.1590/1808-057x202009230","url":null,"abstract":"The aim of this study was to verify whether the discretionary actions of managers to manage earnings can be captured by abnormal book-tax differences (ABTD). In Brazil, there are no studies with the disaggregated use of earnings management (EM) through operational choices as a proxy for discretionary decisions to be captured by ABTD. Moreover, the previous studies focus on the period before the International Financial Reporting Standards (IFRS) were required in Brazil or when they were still being implemented, which may change the context of earnings management in the country and, consequently, the relationship with ABTD. This study is relevant for accounting information users, such as investors, creditors, the tax authorities, and regulatory bodies, as the findings may help them to identify manager opportunism through earnings management. The identification that tax management can be affected by EM through accounting and operational decisions reveals that investors, creditors, the tax authorities, regulators, and auditors should remain vigilant against deteriorations in accounting information quality and, consequently, in the utility of that information. An analysis of 201 non-financial companies was carried out, covering 2012 to 2016, thus totaling 1,005 observations. Five panel data regression models were used: three to capture EM, one to identify ABTD, and one to relate these variables. A significant and positive relationship was revealed between accounting and operational EM and ABTD, indicating that companies that manage earnings upward have positive ABTD, and companies that manage earnings downward have negative ABTD. This research therefore contributes to identifying that ABTD captures the discretionary actions of managers related to EM through accounting and operational decisions.","PeriodicalId":37984,"journal":{"name":"Revista Contabilidade e Financas","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49548897","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-01DOI: 10.1590/1808-057x202010610
Rodrigo Vieira Alves Amaral, R. Leal
ABSTRACT The aim of this paper is to investigate whether the flows and the future returns of stock funds are related to investors’ unobservable information. This article extends the knowledge about investment decisions regarding stock funds and considers a representation of unobservable information that until now has not been contemplated by the Brazilian literature. Understanding decisions to invest in stocks has become more important since the fall in interest rates and migration toward equity investments. The use of unobservable information for making investment decisions is important when choosing stock funds and the return gap could be added to the list of information offered to investors. The return gap measures the value added by managers in relation to the most recently disclosed complete lagged portfolio and was calculated every month for every asset in the portfolios of every fund in the sample disclosed with a three-month lag. A parsimonious sample was used of 22 actively managed funds in the period from January of 2010 to December of 2018, containing one from every one of the 22 biggest independent Brazilian managers, because it is laborious to calculate this metric. The return gap represents unobservable information about a fund. Investors that direct their capital toward stock funds with a higher historical return gap tend to obtain higher returns in out-of-sample tests, suggesting persistence of the returns of these funds and supporting the importance of unobservable information. Investors that directed their capital toward funds with lower historical return gaps could also obtain positive alphas in some cases, indicating that some managers were neglected. The fund flow results were inconclusive.
{"title":"Selection of stock funds using information that is not observable or measurable","authors":"Rodrigo Vieira Alves Amaral, R. Leal","doi":"10.1590/1808-057x202010610","DOIUrl":"https://doi.org/10.1590/1808-057x202010610","url":null,"abstract":"ABSTRACT The aim of this paper is to investigate whether the flows and the future returns of stock funds are related to investors’ unobservable information. This article extends the knowledge about investment decisions regarding stock funds and considers a representation of unobservable information that until now has not been contemplated by the Brazilian literature. Understanding decisions to invest in stocks has become more important since the fall in interest rates and migration toward equity investments. The use of unobservable information for making investment decisions is important when choosing stock funds and the return gap could be added to the list of information offered to investors. The return gap measures the value added by managers in relation to the most recently disclosed complete lagged portfolio and was calculated every month for every asset in the portfolios of every fund in the sample disclosed with a three-month lag. A parsimonious sample was used of 22 actively managed funds in the period from January of 2010 to December of 2018, containing one from every one of the 22 biggest independent Brazilian managers, because it is laborious to calculate this metric. The return gap represents unobservable information about a fund. Investors that direct their capital toward stock funds with a higher historical return gap tend to obtain higher returns in out-of-sample tests, suggesting persistence of the returns of these funds and supporting the importance of unobservable information. Investors that directed their capital toward funds with lower historical return gaps could also obtain positive alphas in some cases, indicating that some managers were neglected. The fund flow results were inconclusive.","PeriodicalId":37984,"journal":{"name":"Revista Contabilidade e Financas","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67199920","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-01DOI: 10.1590/1808-057X202090340
Y. Gendron, Joane Martel
{"title":"On the fragility of cultural markers within scholarly communities: physical distancing and the blurring of group referents","authors":"Y. Gendron, Joane Martel","doi":"10.1590/1808-057X202090340","DOIUrl":"https://doi.org/10.1590/1808-057X202090340","url":null,"abstract":"","PeriodicalId":37984,"journal":{"name":"Revista Contabilidade e Financas","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48240203","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-01DOI: 10.1590/1808-057x201909470
A. Vasconcelos, Adriana Silva, P. Gomes, Cilene Vieira
ABSTRACT This study aims to identify the requirements demanded of accounting practitioners by the market in the second half of the 19th century in the state of Pará. Standing out from the existing literature, this study broadens the understanding of the history of the accounting profession as an occupation, through the use of concepts derived from the sociological theory of professions. The relevance of the topic chosen lies in understanding the impact of the requirements demanded of accounting practitioners on the professionalization process and on the modeling of the limits of the occupational structure. The evidence provides the possibility of strengthening the research in the area of accounting history by demonstrating the difficulty of defining what an “accounting practitioner” was, since the expression covered an infinity of employment situations, the performance of various tasks, and included specialized sub-occupations. The study involves archival research, based on job advertisements published in newspapers that circulated in Pará in the period from 1859 to 1888, available from the National Library of Brazil. The requirements analyzed were demographic characteristics (sex, age, nationality, and marital status) and competences. The findings were compared with those of similar studies, as well as with studies that analyze a contemporary period. The results of this research indicate that the market required accounting practitioners to be male, between 12 and 16 years old, with good conduct confirmed by a reference provider, and practical knowledge that was not always restricted to the accounting universe. The findings demonstrate that there was no objective definition of the limits of the identity of the occupation and, in essence, the requirements demanded of accounting practitioners in the second half of the 19th century persist over time. The contribution of this research consists of broadening and deepening the historical understanding of the nature of the accounting occupation in Pará, an area of less commercial prominence during the second half of the 19th century.
{"title":"Requirements demanded of accounting practitioners by the market in the second half of the 19th century","authors":"A. Vasconcelos, Adriana Silva, P. Gomes, Cilene Vieira","doi":"10.1590/1808-057x201909470","DOIUrl":"https://doi.org/10.1590/1808-057x201909470","url":null,"abstract":"ABSTRACT This study aims to identify the requirements demanded of accounting practitioners by the market in the second half of the 19th century in the state of Pará. Standing out from the existing literature, this study broadens the understanding of the history of the accounting profession as an occupation, through the use of concepts derived from the sociological theory of professions. The relevance of the topic chosen lies in understanding the impact of the requirements demanded of accounting practitioners on the professionalization process and on the modeling of the limits of the occupational structure. The evidence provides the possibility of strengthening the research in the area of accounting history by demonstrating the difficulty of defining what an “accounting practitioner” was, since the expression covered an infinity of employment situations, the performance of various tasks, and included specialized sub-occupations. The study involves archival research, based on job advertisements published in newspapers that circulated in Pará in the period from 1859 to 1888, available from the National Library of Brazil. The requirements analyzed were demographic characteristics (sex, age, nationality, and marital status) and competences. The findings were compared with those of similar studies, as well as with studies that analyze a contemporary period. The results of this research indicate that the market required accounting practitioners to be male, between 12 and 16 years old, with good conduct confirmed by a reference provider, and practical knowledge that was not always restricted to the accounting universe. The findings demonstrate that there was no objective definition of the limits of the identity of the occupation and, in essence, the requirements demanded of accounting practitioners in the second half of the 19th century persist over time. The contribution of this research consists of broadening and deepening the historical understanding of the nature of the accounting occupation in Pará, an area of less commercial prominence during the second half of the 19th century.","PeriodicalId":37984,"journal":{"name":"Revista Contabilidade e Financas","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67199227","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：