Accessibility / Report Error
Revista Brasileira de Gestão de Negócios, Volume: 25, Issue: 4, Published: 2023
  • Earnings thresholds among Brazilian listed companies: a strategy to avoid earnings losses or decreases Article

    Liu, Zhen-Jia

    Abstract in English:

    Abstract Purpose Few studies have analyzed how enterprise managers manipulate business activities to meet the earnings thresholds of Brazilian listed companies. This study investigates whether Brazilian listed companies manipulate their business activities to meet their earnings thresholds. Theoretical framework This study verifies whether Brazilian listed companies manipulate their business activities to meet their earnings thresholds and whether this behavior is consistent with the signaling theory. Design/methodology/approach We employ the Deng model (2018) and analyze how firms manipulate their earnings using gains or losses from property disposition and whether they attempt to meet their earnings thresholds by avoiding earnings losses and decreases. A regression model is then used to verify whether the manipulation affects performance in the following period (i.e., sends signals). A total of 314 samples from 49 Brazilian listed companies during 2011-2018 are examined. Findings Most Brazilian listed companies do not manipulate their gains or losses from property disposition to avoid earnings losses or decreases, and the manipulation does not affect performance in the following period. Therefore, the signals do not reflect future expectations, thus rejecting the signaling theory. Practical & social implications of research Enterprise managers could carefully control operating activities. Creditors could monitor business transactions. Accountants should pay attention to monitoring their real earnings, seeking to align the exercise of manager judgment with practices that improve the quality of accounting information. The board of directors could strengthen its control over the property disposition behavior of enterprise managers. Originality/value This study is the first to verify the earnings manipulation behavior of Brazilian firms by using the signaling theory. We also analyze the manipulation of the gains or losses from property disposition to address the gap in the literature.
  • The relevance of using accounting fundamentals in the Euronext 100 index Article

    Navas, Raúl Daniel; Gama, Ana Paula Matias; Bentes, Sónia Ricardo

    Abstract in English:

    Abstract Purpose The purpose of this research is to investigate whether using an accounting fundamental strategy can provide valuable information about the value of a business and generate positive excess buy-and-hold returns on stocks in the Euronext 100 index. Theoretical framework The theoretical framework of the study is based on the combination of valuation theory and accounting research. We rely on fundamental analysis as a stock valuation method, which involves looking at both quantitative and qualitative information in a company's economic and financial records. Design/methodology/approach We examine the relevance of growth and earnings response coefficients, as well as Piotroski's F-scores and Lev and Thiagarajan's L-scores in predicting future stock returns. The analysis covers the years 2000 to 2020. Findings The study finds that accounting fundamental signals provide value-relevant information to investors and have a significant and positive relationship with future buy-and-hold market returns, resulting in high-scoring portfolios achieving significant average annual market excess returns. Practical & social implications of research The results of the study have practical implications for investors who use fundamental analysis as an investment strategy. The results indicate that accounting fundamentals provide value-relevant information to investors and can lead to positive excess buy-and-hold returns. Originality/value The study contributes to the understanding of the role of fundamentals in firm valuation and provides fresh insights into binary models and fundamental analysis applied to European markets. In addition, the study tests the robustness of fundamental strategies using fixed effects regression analysis.
  • Point-of-sale loyalty analysis considering store environment (online and offline) and recency of purchase Article

    Hermenegildo-Chávez, María Victoria; Martín-Ruiz, David; Rondán-Cataluña, Francisco Javier

    Abstract in English:

    Abstract Purpose First, to test our comparative model of online and offline purchase behavior; and second, to investigate whether recency moderates the model's relationships in different time periods. Theoretical framework This study is framed by Garbarino and Johnson's (1999) theory of the roles of satisfaction, trust, and commitment. Design/methodology/approach The sample consists of 768 purchases of products/services by Peruvian consumers. To test the hypotheses, we apply structural equation modeling based on covariance (SEM). Findings The relationship between privacy/security of purchase and quality is stronger in an offline purchase than an online purchase, while the opposite is true for the relationship between quality and trust. Also, purchase recency moderates all relationships in our loyalty model. Practical & social implications of research We focus this study on a Latin American country where recency of purchase is central to customer loyalty relationships. Originality/value We provide a relevant perspective on point-of-sale loyalty in both offline and online environments, looking at the moderating role of recency of purchase (a variable that has been scarcely researched) in the context of a developing country such as Peru.
  • Organizational survival of technology-based enterprises after incubation: a qualitative comparative explanation Article

    Paula, Pablo Peron de; Santos, Carlos Denner dos; Couto, Felipe Fróes

    Abstract in English:

    Abstract Purpose To analyze the configurations of legitimacy, dynamic capabilities, and business resources consistent with the survival of post-incubated companies. Theoretical framework “Liability of newness” highlights that nascent companies suffer from factors that hinder their survival. However, business incubators help to develop nascent businesses. This paper seeks to show how different configurations between legitimacy, dynamic capabilities, and resources can form a strategic orientation for survival. Design/methodology/approach The strategy of multiple case studies was applied to 90 companies and the techniques of fuzzy set qualitative comparative analysis (fsQCA) were used. Findings The results present two configurations of technology-based companies with high perceptions of legitimacy, resources, and dynamic capabilities that differ by size and satisfaction. A third configuration of technology-based companies has high perceptions of legitimacy and resources. A fourth configuration involves technology-based companies with high perceptions of legitimacy, a larger size, and satisfaction with the incubator. Practical & social implications of research For managers, the results make it possible to create an incubation environment that is able to identify and fill the individual gaps of the enterprises. In addition, they indicate that business incubator managers and/or funders should focus their efforts on the incubation of technology-based companies. Originality/value The first is to reinforce the central role of legitimacy for survival. The second is to show that the interrelationship between legitimacy, resources, and dynamic capabilities forms resilient organizational configurations in different ways.
  • Composition of the board of directors and the probability of disclosure of social responsibility reports Article

    Jacques, Kelly Aparecida Silva; Lemes, Sirlei; Fávero, Luiz Paulo Lopes; Rodrigues, Lúcia Maria Portela de Lima

    Abstract in English:

    Abstract Purpose To identify the relationship between characteristics of the board of directors and the probability of dissemination of social responsibility reports. Theoretical framework Considering the central role of the board of directors in mitigating conflicts of interest, the study is based on the stakeholder-agency theory. Design/methodology/approach The sample included 250 companies listed on the Brazilian Stock Exchange (B3). The data used were collected in the “Relate or Explain” Report, Economática®, and CVM Reference Form, and then operationalized using a binary logistic regression model. Findings The results suggest that the probability of dissemination of social responsibility reports is 1.52% higher for companies with more concentrated shares, 101.10% higher for larger companies, and 59.2% lower for companies with dual positions. Practical & social implications of research The findings may be useful for (i) guiding organizational strategies for board composition that improve the dissemination of social responsibility reporting, (ii) fostering discussions about changes in the classification of levels of corporate governance in the B3, and (iii) multi-stakeholder decision making. Originality/value For the accounting academia, the study promotes an additional debate on the role of the board of directors in dealing with the agency problem. The study is innovative in showing how the characteristics of the board of directors can change the potential for dissemination of social responsibility reports.
  • How political skill and work engagement differ by hierarchical level: Evidence from Brazil Article

    Moraes, Romulo Matos de; Istoe, Rosalee Santos Crespo; Miranda, Valtair Afonso

    Abstract in English:

    Abstract Purpose The aim of this study is to analyze how levels of political skill and work engagement vary among managers of different hierarchical levels in the scenario studied. Theoretical framework This research is based on the existing literature on leadership and is aligned with recent studies focusing on politics and engagement within work environments. Methodology Changes in the study variables, their effects and relationships were verified by multivariate analysis of variance in a sample (n=308) of professionals from three segments of the Brazilian private sector. The measurement instrument for political skill was adapted and validated for Portuguese. Findings Hierarchical level affects the linear interaction between engagement and political skill, but in the scenario studied, politics played a greater role in this dynamic. The results suggest that engagement in work is a consistent attribute for managers regardless of their managerial position, while political skill within the organization progressively increases with each advancement in hierarchical level. Practical & social implications of research It is expected that leadership development programs will take into account the importance of political skill in their actions and planning, particularly for activities where the need for negotiation, influence, and networking is crucial. The study suggests that the integration of engagement and political skill emerges as an opportunity to be explored in the pursuit of hierarchical advancement. Originality/value The findings expand current knowledge about the relationships among the constructs in the study by presenting evidence of their intrinsic interactions with the hierarchical position of managers. Complementarily, the study contributes a short version of the Political Skills Inventory, methodologically validated for Brazil.
Fundação Escola de Comércio Álvares Penteado Fundação Escola de Comércio Álvares Penteado, Av. da Liberdade, 532, 01.502-001 , São Paulo, SP, Brasil , (+55 11) 3272-2340 , (+55 11) 3272-2302, (+55 11) 3272-2302 - São Paulo - SP - Brazil
E-mail: rbgn@fecap.br