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Our main goal is to study the development of biodiesel as a renewable energy source in Brazilian reality. Specifically, we shall discuss the flexibility between traditional diesel and biodiesel. It will be evaluated the option pricing of a diesel-run device where it is possible to use diesel or biodiesel. The evaluation will be done by means of a Real Options Approach, where the choice is modeled on a European options sequence. We also comment on the added gains for a country like Brazil.

This paper assesses the sustainability of Brazilian’s water and sanitation state-owned companies’ services. The assessment was conducted based on the selection of six indicators reflecting three of the sustainability dimensions: social, economic, and environmental. We built a global sustainability index by adopting the MACBETH multicriteria analysis methodology, which aggregates the dimensions of sustainability with their respective indicators. As main result we found that two companies were considered sustainable in each of the three assessed dimensions of sustainability, and that three companies were globally sustainable according to the methodology applied in this study. Setting sustainability targets and increasing regulatory enforcement leads to improved services performance. Further, sustainable sanitation services bring us closer to achieving the national targets for universal access and Sustainable Development Goal 6 established by the United Nations.

In order to capture the informational effect of the Brazilian short-term interest rate (SELIC rate) by Poisson jumps, we build on the tests conducted by Das (2002) and Johannes (2004), which show the significance of such structures for U.S. Federal Open Market Committee (FOMC) announcements. As in the above researches, we have found evidence that a relevant amount of the short-term volatility in the fixed income market is captured by introducing jumps on the stochastic process of the short-term rate. This structure also allows the verification of the information content of specific events, such as Brazilian monetary policy authority (COPOM) meetings and public bond auctions.

RESUMOEste trabalho analisa o efeito da instrução normativa CVM 550 sobre a utilização de derivativos e, consequentemente, a gestão de risco das companhias abertas brasileiras. A resolução exige que as empresas apurem por meio do valor de mercado os instrumentos derivativos em suas demonstrações financeiras trimestrais. No entanto, a deliberação não prevê tratamento contábil para tais tipos de instrumentos. Assim, é suposto que o efeito da norma deve afetar dois grupos de usuários de derivativos: os hedgers (EH) e os especuladores (IS). Os resultados empíricos mostram que o risco incorrido pelas empresas se refere, basicamente, à taxa de juros e câmbio. Após a adoção da norma, foram encontradas evidências estatísticas que apontam uma diminuição do uso de derivativos para ambos os grupos. As evidências sugerem que a resolução 550 tem incentivado as empresas a contratarem derivativos com mais prudência, o que indica uma mudança na política de gestão de risco. Para o estudo em questão foi utilizada uma amostra de 107 empresas brasileiras pertencentes aos 10 grandes setores econômicos do ICB, em uma janela de dados de 10 anos (1999 a 2009). Palavras-chave:Resolução 550 CVM. Instrumentos Financeiros Derivativos. Gestão de Risco. ABSTRACTThe present study examines the effect of CVM normative instruction 550 on the use of derivatives and, consequently, on the risk management of Brazilian companies. The instruction requires companies to disclose the fair value of derivative instruments in their quarterly financial statements. However, this resolution does not establish on the accounting treatment for these types of instruments. Thus, it is supposed that the rule should affect both groups of derivatives users, hedgers (EH) and speculators (IS). The empirical results show that the risk the companies incur basically refers to the interest rate and exchange rate. After the adoption of the instruction, statistical evidence was found that shows a decrease in derivative use for both groups. The evidence suggests that instruction 550 has encouraged companies to use derivatives contracts with more prudence, which may suggest a change in risk management behavior. For this study, a Gestão de risco e os impactos da instrução normativa CVM nº 550 -análise empírica Revista Contabilidade & Finanças, USP, São Paulo, v. 21, n. 53, maio/agosto 2010 2 sample of 107 Brazilian companies was used, belonging to 10 ICB economic sectors, during a ten-year period (1999 to 2009).

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Investments in port container terminals are sensitive to uncertainties. Public investments in infrastructure have been significantly reduced in the last decade in developing countries. The Brazilian government infrastructure investment was only 1.85 % of GDP in 2019, representing the lowest level in the last fifty years. Nonetheless, the regulatory framework of the port sector in Brazil has undergone significant changes over time, increasing the number of private port container terminal leases. The expansion capacity of the private port facilities is strongly linked to the demand uncertainty, which impacts the financial return to the long run. In this scenario, the uncertainty of global cargo transportation can discourage infrastructure investments in this class of project in Brazil. To overcome these issues, the financial modelling applying real options approach is better suited than the traditional valuation methods based on Discounted Cash Flow (DCF) analysis. The present study aims to value flexibilities of anticipating, or postponing, or interrupting investments of an existing operational port terminal in Brazil with expansion capacity under the demand uncertainty. The financial decision to invest in a port expansion is modeled by an American option. The results demonstrate that the investor adds significant value to the project by having the possibility to postpone investments. The proposed model presents the contribution of optimizing the decision of sequential expansions of capacity in port terminals, at any time and according to scenarios' revelation. In addition, the model allows the government authorities to review lease contracts, considering the relevance of timing to invest in project expansion decisions. The proposed model can also be extended to other infrastructure projects in emerging economies.