Companies invest significant volumes of resources in investor relations (IR) departments. The professionals working in the IR department are responsible for communication between the company and the market, so that the information generated is widely disseminated and understood by investors. In this context, this research aims to investigate whether there is evidence that the IR activity decreases information asymmetry between the company and the market. Specifically, we evaluate the hypothesis that Brazilian companies with IR websites classified as more informative have a reduced bid-ask spread (proxy for asymmetry). Therefore, this paper classifies the informative content from IR websites of Brazilian companies for the years 2013 and 2014 and relates the outcomes obtained with information asymmetry metrics. Initially, the estimation considers the pooled ordinary least squares (POLS) model and, at a second moment, in order to mitigate potential endogeneity problems, the pooled two-stage least squares (2SLS) model is used. The results indicate that more informative IR websites are able to decrease the bid-ask spread of Brazilian listed companies. This finding strongly encourages companies to provide information to stakeholders on well-structured IR websites of their own.
Corporate scandals that occurred before the Sarbanes-Oxley Act demonstrated weaknesses in the compliance environment, arising from the low level of involvement of the middle management with internal controls. Regarding middle management in the banking sector, which needs to monitor risks and ensure compliance with laws and regulations, no studies were found that correlated managers’ demographic variables with compliance and financial performance. Therefore, the objective of this research is to evaluate whether compliance mediates the effect of the demographic characteristics of intermediary managers on the financial performance of bank branches. We use the Generalised Structural Equation Modeling (gSEM) as a data analysis technique to determine whether compliance mediates managerial demographics on the financial performance of bank branches. The results suggest that compliance mediates managerial demographics on financial performance only for some demographic characteristics.
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