Purpose: This study aims to analyze the relationship between the abnormal return and R&D expenses in Brazilian public firms. Originality/value: The determinants of firms' abnormal return provide information relevant to investors' decision-making. In this context, we verified whether the innovation, measured by R&D expenses, could be a key factor for the abnormal returns in Brazilian firms. Design/methodology/approach: We analyzed Brazilian public firms, from 2009 to 2016, by panel data regressions, in a sample composed by 1,597 firm-year observations. We collected information about R&D expenses in the footnotes. When a firm only mentioned about R&D expenses but did not disclose spent value in the Income Statement, we consider that the firm did not invest in the period and we attribute zero as a value. We highlighted that few firms mentioned R&D expenses in their footnotes and/or declared that they invested in R&D, only 44 firms in all sample, pointing the importance of better disclosure practices of these investments. Findings: The results demonstrate a negative and statistically significant relationship between innovation and the abnormal return. That is, current R&D expenses lead to a lower current abnormal return. It could be linked with the fact that R&D expenses tend to produce returns just in longer periods, demanding more time to recover these investments, due to their complex characteristics related to accounting measurement of R&D expenses. Consequently, an abnormal return could be perceived only in subsequent periods.
The aim of this study is to analyze the impact factors and their effects on the corporate cash holdings in order to assist companies in achieving better financial management, corroborating the perpetuity of them. The sample consists of 917 observations of 131 listed companies in Brazil, from 2007 to 2013. The dependent variable used in this study is the natural logarithm of cash and cash equivalents divided by the total of net assets and the major independent variables are show in literature plus a dummy variable for passive financing through BNDES and a control variable for the financial crisis. The methodology used is regression with static and balanced panel data, with better results for fixed effects. Evidence is found that the variable distribution of dividends, higher level of liquid assets, existence of corporate governance, in addition to financial crisis, impact cash.
Esta pesquisa visa obter respostas sobre quais indicadores de desempenho são utilizados pelas indústrias automotivas em seus sistemas de incentivo, ou seja, em seus acordos de participação nos lucros e resultados (PLR). Foram analisados 39 acordos de PLR, que tiveram seus indicadores de desempenho agrupados em seis classes: financeiros, qualidade, flexibilidade, produtividade, clientes e recursos humanos. Entre os resultados obtidos detectou-se a presença maciça de indicadores não-financeiros tradicionais, não tendo sido encontrados indicadores de desempenho mais voltados à inserção socioambiental da empresa, por exemplo, indicadores relacionados ao seu impacto ambiental. O predomínio de indicadores de produtividade e de qualidade remete à possibilidade do uso de indicadores não-financeiros como <em>proxies</em> de indicadores financeiros em ciclos econômicos em que há a expansão das atividades industriais. Após a exploração dos resultados, sugere-se que trabalhos futuros considerem o estudo da composição do grupo de indicadores juntamente com fatores que impactam a escolha dos indicadores, tais como posicionamento estratégico e sofisticação tecnológica.
O presente artigo analisou a relação entre as práticas de divulgação de ativos biológicos e a concentração acionária nas empresas do agronegócio brasileiro. Foram analisadas as demonstrações contábeis de 27 empresas de capital aberto, para o período de 2011 a 2015. As evidências indicam que o nível de divulgação de ativos biológicos é ainda modesto nestas empresas, e que a concentração acionária típica do setor não afeta o nível de divulgação desses ativos. Os resultados confirmam estudos anteriores em relação aos efeitos do porte e da representatividade dos ativos biológicos na atividade das empresas.
Avenida Prefeito Lothario Meissner, 632 -CEP 80210-170 -Curitiba (PR) -Brasil Este é um artigo de acesso aberto, licenciado por Creative Commons Atribuição 4.0 Internacional (CC BY 4.0), sendo permitidas reprodução, adaptação e distribuição desde que o autor e a fonte originais sejam creditados.
This paper examines whether dividend payments mitigate the influence of COVID-19 crisis on earnings management practices in Brazil. For this purpose, we use a sample of 264 Brazilian public firms from 2010 to 2021, applying System Generalized Method of Moments (SYS-GMM) regressions. Our main results indicate that, although firms are more prone to engage in earnings management practices during the COVID-19 period, the dividend payout ratio mitigates this influence on earnings management level. Therefore, we show that dividend payment can act as a substitute corporate governance mechanism in times of crisis, since it can reduce the occurrence of earnings management. Additional analyses also support this view, showing that big levels of dividends play a role in minimizing agency conflicts by reducing the level of earnings management. Hence, we contribute to the literature on dividend policy and earnings management, which calls for research to better understand the influence of dividends on earnings management practices in financial crises periods. Further, we shed light on how firms can use dividend policies as a substitute corporate governance mechanism to maintain or establish its reputation during periods of financial crises, benefiting investors, boards, creditors, financial analysts, and policymakers due the increase on the financial reporting quality.
This thesis aims to explore the relations between cash holdings, accounting quality and cost of capital in the context of IFRS adoption in Latin America. In the first essay, we verified the effect of IFRS adoption on accounting quality, especially, earnings management practices. The results show that the adoption of IFRS standards reduced the scope of earnings management practices in Latin American firms. The results also show that IFRS adoption has decreased cash holdings in these firms, as a consequence of higher quality standards. Additional findings suggest that the benefits of IFRS adoption is more pronounced in non-ADR firms since ADR firms present strong incentives to improve the level of accounting information quality. In the second essay, we analyzed the effects of IFRS adoption in the relationship between cash holdings and the cost of capital in Latin American firms. Our findings demonstrated that IFRS adoption impacted the relationship between cash holdings and cost of equity in Latin American firms. That is, when the firms increase cost of equity post-IFRS adoption, they also increase cash levels. Additional analysis demonstrated that IFRS adoption impacted cost of equity only in non-internationalized firms since these firms are more likely to face challenges in relation to the cost of capital than its counterparts. For the cost of debt, we did not find significant results since creditors already have their own mechanisms for loans guarantees. Finally, in the third essay, we analyzed whether discretionary accruals measured by gross income are value relevant in the context of IFRS adoption, comparing with discretionary accruals measured by net income. In addition, we analyzed whether discretionary accruals measured by gross income have complementary information to cash holdings, impacting value relevance. The results demonstrated that discretionary accruals measured by gross income influences value relevance and, the results are sensitive to the context of IFRS adoption. For discretionary accruals measured by net income, we did not find significant results. Additional findings suggest that in context of better accounting quality, the information related to gross income became more reliable, being a better way to predict future performance of firms than cash holdings. In general, this thesis seeks to contribute to literature demonstrating that the adoption of IFRS standards influences the relations between cash holdings, accounting quality and cost of capital in Latin American countries, emerging fruitful insights for future research.
Purpose – The study aims to analyze the relationship between intangible assets and the economic performance of Brazilian public companies. Design/methodology/approach – We calculated the Degree of Intangibility (DI) to segregate companies into two groups: intangible-intensive and tangible-intensive in a sample of Brazilian public companies from 2012 to 2016. We applied the Mann-Whitney test to verify whether there were statistically significant differences between these two groups of companies concerning the Operating Margin, Return on Equity, Return on Assets, Market Value Added and Earning per Share. Findings – The results show that intangible-intensive companies presented higher economic performance in most part of the indicators and years analyzed. In addition, we did not find significant results for Earnings per Share, although the signed rank sum mean values of intangible-intensive are higher than tangible-intensive companies in most part of the years. Practical implications - The findings seek to contribute to discussions about the importance of intangible resources as determinants of competitive advantages and reflecting in higher economic performance, and thus increasing market value. In this sense, investments in intangible resources can be applied in adopting initiatives in markets and definition of strategic positions in companies. Finally, our study seeks also to contribute to capital markets since the relationship between intangible assets and economic performance can be useful in detecting investment opportunities. Originality/value – Previous studies analyzed the relationship between intangible assets and economic performance with other periods and samples. We also measured different proxies for economic performance as Operating Margin, Return on Equity, Return on Assets, Market Value Added and Earnings per Share.
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