Considering the benefits of investing in foreign stocks, and, in contrast, the occurrence of the home bias phenomenon, this research aimed to analyze the relationship between home bias and performance. The sample of the study is comprised of 488 Brazilian mutual funds. We employed a multivariate regression model to analyze the relationship among the variables. As a performance proxy, we adopted the Sharpe index for the period from January, 2010 to December, 2015. The average level of investments in foreign stocks was the independent variable of interest. The main results indicated that home bias seems to be costly and probably it occurs due behavioral biases. In a second regression model, we also found that the mutual funds designed for qualified investors and those requiring higher levels of minimum value for investment tend to present lower levels of home bias.
Objective:The accounting information can be manipulated in order to change the perception of the minority shareholders about the real situation of the firm. In case of state-owned enterprises (SOEs), they can have their wealth expropriated by the politicians and bureaucrats’ opportunistic behavior, which is an incentive to the earnings management (EM) practice. This study aims to analyze the state ownership effects on EM in Brazil, and investigate the link between EM, and ownership and control structures.Method: Data from 2006–2015,for 250 non-financial Brazilian public firms, which covers 26 SOEs. The analyses are based on multiple regression methods with panel data.Originality/Relevance:This study innovates by including in this analysis the interaction of state control with the excess of control rights over the ownership rights of the largest shareholders, and analyze the entrenchment effect. Additionally, addresses the EM both in terms of direction and breadth.Results: SOEs tend to take on income-increasing practices, which persisted even after the adoption of International Financial Reporting Standards (IFRS). However, the IFRS adoption led to a reduction in the level of EM, in special the positive trend. Yet, the firms' market value and size are significant for explaining EM.Theoretical/Methodological contributions: this study helps to understand the behavior of Brazilian SOEs, while reveals the SOE's political influence can induce greater information asymmetry and the control is more concentrated in there, which supposedly raises the risks of minority shareholders' expropriation. These results suggest the need for improvements in the transparency of these companies.
Este estudo analisou como as características dos conselhos de administração se relacionam com o gerenciamento de resultados (Earnings Management), considerando 201 empresas da B3 no período 2010 a 2015, segmentadas em estatais e não estatais. O método envolveu testes não paramétricos e regressões com dados em painel. O gerenciamento de resultados foi representado pelos accruals discricionários, apurados conforme Kang e Sivaramakrishnan (1995). Este modelo foi reconhecido como sendo um dos melhores para o cenário brasileiro (Martinez, 2010). Analisou-se a extensão e direção do gerenciamento, enquanto outros estudos somente analisam a sua extensão. Os resultados evidenciaram a necessidade de aumentar a proporção de conselheiros independentes das empresas, pois a independência dos conselhos parece reprimir o EM. Constatou-se que a independência dos conselheiros contribui para a efetividade da função de monitoramento e redução das práticas de EM.
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