Complexity and corporate governance: an analysis of companies listed on the BM&amp;FBOVESPA

Assunção, Renata Rouquayrol; Luca, Márcia Martins Mendes De; Vasconcelos, Alessandra Carvalho de

doi:10.1590/1808-057x201702660

Cited by 12 publications

(4 citation statements)

References 28 publications

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“…Lastly, Figure 4 shows the perceptual map of the correspondence analysis regarding the association between CAR and the three variables related to the linguistic sentiment of earnings conference calls (SENTIntro, SENTQ&A, and SENTOverall). All the variables were classified into Low, Medium-Low, Medium-High, and High, using quartiles, similar to proceeded in previous studies (Assunção, De Luca, & Vasconcelos, 2017;Corso, Kassai, & Lima, 2012;Santos, Schiozer, & Ponte, 2016). Regarding the association between CAR and SENTIntro, it is possible to observe an evident appro-…”

Section: Resultsmentioning

confidence: 82%

Do the Words Matter? An Analysis of the Linguistic Sentiment of Earnings Conference Calls and Abnormal Stock Returns in Brazilian Companies

Viana¹,

Castro²,

Ponte³

et al. 2020

ASAA Journal

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In finance and accounting literature, different aspects are presented as possible factors related to stock returns. More recently, studies have been dedicated to analyzing the potential influence of the tone and sentiment of corporate reports, newspaper articles, press releases, and investor message boards on stock prices. Thus, based on assumptions of Legitimacy Theory, we investigate whether cumulative abnormal returns (CAR) on the stocks of Brazilian listed companies are associated with the linguistic sentiment of quarterly earnings conference calls. Using a sample of 78 observations related to the conference calls of 24 companies listed in the Novo Mercado segment in 2016-2017, we measured CAR using the market model and the linguistic sentiment of earnings conference calls using IBM's Watson Natural Language Understanding platform. An analysis of the results of statistical tests such as descriptive results, correlation matrix, and correspondence analysis enables it to be inferred that, in general, there is a positive association between cumulative abnormal returns and the optimism sentiment of quarterly conference calls. Thus, it is conjectured the possibility that the speeches made by managers in conference calls legitimize company performance in the market, by altering the perception of investors in the stock market and leading to implications for the value of the stocks traded.

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Section: Resultsmentioning

confidence: 82%

Do the Words Matter? An Analysis of the Linguistic Sentiment of Earnings Conference Calls and Abnormal Stock Returns in Brazilian Companies

Viana¹,

Castro²,

Ponte³

et al. 2020

ASAA Journal

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show abstract

“…From the perspective of agency theory, several studies have analyzed which governance mechanisms have the most impact on reducing agency conflicts (Assunção et al, 2017). Black et al (2020), for instance, point out the mechanisms of board structure, ownership structure, shareholder rights, financial disclosure, and control of transactions with related parties as important in reducing agency conflicts, with positive impact on firm's market value.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Corporate governance index and market performance: evidence in the Brazilian stock market

Ribeiro,

Souza

2023

Rev. contab. finanç.

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This study aimed to build a corporate governance index for Brazilian companies with stocks traded by the Brazil Stock Exchange and Over-the-Counter Market (Brasil, Bolsa, Balcão [B3]) to evaluate the effect of the best governance practices on their market performance, between the years 2010 and 2020. Despite the different governance indexes created for Brazilian companies, most of the empirical studies used proxies based on B3's Differential Corporate Governance Levels (DCGLs). This scenario is mainly due to difficulty in collecting data and operationalizing these indexes. This article proposes a corporate governance index that is simple to use and, therefore, more accessible when compared to other indexes documented in the literature. The creation of an effective index for assessing corporate governance quality in Brazilian companies is key, given that the influence that governance has on the financial decisions made by these companies is greater in countries with weak legal protection for investors, such as Brazil. Investors see that well-governed companies are less risky, thus they have a better chance of recouping their investments. Thus, the proposed index stands out as a major instrument of financial assessment. The proposed governance index has been supported by previous studies pointing out the most efficient mechanisms in reducing agency problems. As measures of market performance, Tobin's Q and Firm Value were used. Finally, the analysis was performed using ordinary least squares (OLS) models, panel data, and regression models using the instrumental variables approach. The proposed index proved to be a good measure of governance, given the unanimous results among the models. In all estimations, the relationship between corporate governance and market performance was positive, attesting the market confidence associated with the corporate governance quality expressed by the index.

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“…Sob a perspectiva da teoria da agência, diversos estudos têm analisado quais mecanismos de governança mais impactam na redução dos conflitos de agência (Assunção et al, 2017). Black et al (2020), por exemplo, aponta os mecanismos estrutura do conselho, estrutura de propriedade, direitos dos acionistas, divulgações financeiras e controle de transações com partes relacionadas como importantes na redução dos conflitos de agência, com impacto positivo no valor de mercado das empresas.…”

Section: Fundamentação Teóricaunclassified

Índice de governança corporativa e desempenho de mercado: evidências no mercado acionário brasileiro

Ribeiro,

Souza

2023

Rev. contab. finanç.

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RESUMO Este estudo teve por objetivo construir um índice de governança corporativa para empresas brasileiras com ações negociadas pela Brasil, Bolsa, Balcão (B3) para avaliar o efeito das melhores práticas de governança em seu desempenho de mercado, entre os anos de 2010 e 2020. Apesar dos diferentes índices de governança criados para as empresas brasileiras, grande parte dos estudos empíricos empregaram proxies a partir dos Níveis Diferenciados de Governança Corporativa (NDGC) da B3. Esse cenário se deve, principalmente, à dificuldade de coleta de dados e operacionalização desses índices. Este artigo propõe um índice de governança corporativa de simples operacionalização e, logo, mais acessível quando comparado aos demais índices documentados pela literatura. A criação de um índice eficaz na avaliação da qualidade da governança corporativa das empresas brasileiras é imprescindível, dado que a influência que a governança exerce nas decisões financeiras dessas empresas é maior em países com fraca proteção legal aos investidores, como o Brasil. Os investidores compreendem que as empresas bem governadas são menos arriscadas e têm, portanto, maiores chances de recuperar seus investimentos. Assim, o índice proposto se destaca como um importante instrumento de avaliação financeira. O índice de governança proposto foi amparado em estudos anteriores que indicam os mecanismos mais eficientes na redução dos problemas de agência. Como medidas de desempenho de mercado, empregou-se o Q de Tobin e o Valor da Firma. Por fim, a análise foi realizada via modelos dos mínimos quadrados ordinários (MQO), dados em painel e modelos de regressão por meio da abordagem de variáveis instrumentais. O índice proposto se mostrou uma boa medida de governança, dado os resultados unânimes entre os modelos. Em todas as estimações, a relação entre governança corporativa e o desempenho de mercado foi positiva, atestando a confiança do mercado associada à qualidade da governança corporativa expressa pelo índice.

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Complexity and corporate governance: an analysis of companies listed on the BM&FBOVESPA

Cited by 12 publications

References 28 publications

Do the Words Matter? An Analysis of the Linguistic Sentiment of Earnings Conference Calls and Abnormal Stock Returns in Brazilian Companies

Do the Words Matter? An Analysis of the Linguistic Sentiment of Earnings Conference Calls and Abnormal Stock Returns in Brazilian Companies

Corporate governance index and market performance: evidence in the Brazilian stock market

Índice de governança corporativa e desempenho de mercado: evidências no mercado acionário brasileiro

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