Dependent Variable: Proxy for Financial Analysts |
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Coverage |
COV |
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Barth, Kasznik, and McNichols (2001Barth, M. E., Kasznik, R., & McNichols, M. F. (2001). Analyst coverage and intangibles assets. Journal of Accounting Research, 39(1), 1-34.) |
Forecast error |
FE |
FE = forecast error of earnings per share (EPS); X = EPS; F = consensus of analysts’ EPS forecasts for the following 12 months, estimated in December; P = closing price of the company’s stock one day before the end of the month in which the consensus of the analysts’ forecasts was released. |
Ramnath, Rock, and Shane (2005Ramnath, S., Rock, S., & Shane, P. (2005). Value Line and I/B/E/S earnings forecasts. International Journal of Forecasting, 21(1), 185-198.) |
Accuracy |
AC |
AC (accuracy) = a dispersion estimate. It is calculated based on the standard deviation of the forecast estimate for firm i in time t, scaled by the share price of firm i in time t. |
Almeida and Dalmácio (2015Almeida, J. E. F., & Dalmácio, F. Z. (2015). The effects of corporate governance and product market competition on analysts’ forecasts: Evidence from the Brazilian capital market. The International Journal of Accounting, 50(3), 316-339.) |
Independent Variables: Proxy for Intangible Assets |
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Intangible assets |
IA |
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Barth, Kasznik, and McNichols (2001Barth, M. E., Kasznik, R., & McNichols, M. F. (2001). Analyst coverage and intangibles assets. Journal of Accounting Research, 39(1), 1-34.) |
Number of patents |
PAT |
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Teh, Kayo, and Kimura (2008Teh, C. C.; Kayo, E. K., & Kimura, H. (2008). Brands, patents, and value creation. Revista de Administração Mackenzie, 9(1), 86-106.). |
Variable |
Description |
Acronym |
Formula |
Authors |
Independent Variables: Performance Proxy (Control) |
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Effort |
EFF |
EFF = negative average number of companies followed by financial analysts in relation to a specific company. The average number of companies was multiplied by -1 so that the effort is an increasing measure. As Barth, Kasznik, and McNichols (2001Barth, M. E., Kasznik, R., & McNichols, M. F. (2001). Analyst coverage and intangibles assets. Journal of Accounting Research, 39(1), 1-34., p. 11) have clarified, “if a company is followed by three analysts who cover five, six, or seven companies, respectively, the effort equals -6.” |
Barth, Kasznik, and McNichols (2001Barth, M. E., Kasznik, R., & McNichols, M. F. (2001). Analyst coverage and intangibles assets. Journal of Accounting Research, 39(1), 1-34., p. 11) |
Independent Variables: Performance Proxy (Control) |
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Turnover |
TUR |
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Lesmond (2005Lesmond, D. A. (2005). Liquidity of emerging markets. Journal of Financial Economics, 77(2), 411-452.) |
Profitability |
PROF |
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Macedo, Machado, Murcia, and Machado (2012Macedo, M. A. S., Machado, M. R., Murcia, F. D., & Machado, M. A. V. (2012). Análise da relevância do EBITDA versus fluxo de caixa operacional no mercado brasileiro de capitais. Advances in Scientific and Applied Accounting, 5(1), 99-130.) |
Size |
SIZE |
|
Gu and Wang (2005Gu, F., & Wang, W. (2005). Intangible assets, information complexity, and analysts’ earnings forecast. Journal of Business Finance & Accounting, 32(9-10), 1673-1702.) |
Market-to-book |
MTB |
Where: P = type y share price of company i, in t; N = number of type y shares of company i, in circulation in t. |
Mussa, Famá, and Santos (2012Mussa, A., Famá, R., & Santos, J. O. (2012). A adição do fator de risco momento ao modelo de precificação de ativos dos três fatores de Fama & French aplicado ao Mercado acionário brasileiro. Revista de Gestão, 19(3), 447-464.). |
Beta |
BETA |
= covariance between the return of asset i and the market index and variance of the market index returns. Beta is calculated based on the return of the assets in a period of 60 months (minimum of 24 observations), using the Bovespa index (Ibovespa) as the market return and the CDI (interbank deposit certificate) as a risk-free asset proxy. |
Kayo, The, and Basso (2006Kayo, E. K., Teh, C. C., & Basso, L. F. C. (2006). Ativos intangíveis e estrutura de capital: A influência das marcas e patentes sobre o endividamento. Revista de Administração, 41(2), 158-168.) |