Resumo em Inglês:

Abstract Purpose This article examines how the institutional work of inducing agents and the dissemination of knowledge among induced immersed actors have influenced adherence to governance standards in Brazilian industrial clusters. Theoretical framework We use institutional theory to frame the relationships between embedded firms through regulatory, normative, and cultural-cognitive pillars and the view of field-level agents engaged in institutional work, who share knowledge to induce adherence to governance standards. Design/methodology/approach We adopted a mixed methods research design, examining 96 companies in three Brazilian industrial clusters. We used WABA analysis to test our model within and between clusters using one-way ANOVA tests, and we tested our hypotheses using correlations identified in t-tests between independent samples and multiple linear regression to build the model. Findings The findings reveal that institutional work affects the dissemination of knowledge at multiple levels, influencing companies' adherence to cluster governance standards. We show that less adherence to new governance standards can be explained by the lack of internalization of disseminated knowledge. The institutional structures that historically existed before the implementation of formal governance prevail over the new ones, since the knowledge disseminated in these clusters tends to maintain current economic and institutional conditions, with little support for the creation of new institutions. Practical & social implications of research Cognitive aspects of the internalization of explicit, effective, and institutional knowledge suggest that its dissemination influences firms’ adherence to the industrial cluster’s governance patterns. Originality/value Little attention has been paid to how knowledge dissemination and institutional work can lead to the creation of and adherence to industrial cluster governance standards; and the dissemination of knowledge is more effective when social relations are included in the analysis model.

Resumo em Inglês:

Abstract Purpose This research aims to investigate the relationship between Chief Executive Officer (CEO) narcissism and earnings management practices in Brazilian listed companies. Theoretical framework Support for the Upper Echelons Theory (UET). Design/methodology/approach Using a panel data regression approach, we analyze a sample of 106 companies listed on the B3 from 2010 to 2019. To assess CEO narcissism, we rely on their statements during quarterly conference calls, while earnings management is measured by estimating discretionary accruals based on the Collins model (2017). Findings The study uncovers a significant positive correlation between CEO narcissism and earnings management, suggesting that narcissistic CEOs manipulate accounting practices for personal gain, driven by their desire for attention and admiration. Furthermore, the analysis reveals that CEO tenure, board presence, company size, and profitability positively influence earnings management, while the Brazilian economic recession negatively impacts it. The research also innovates by introducing a unique method for measuring narcissism. Practical & social implications of research This study contributes to the literature by shedding light on the influence of managers' narcissism, underscoring the importance of considering personality traits when recruiting and supervising executives. Originality/value In terms of originality, this research measures the level of narcissism among CEOs using secondary data, adopting a methodology considered more reliable for the study of personality (Mehl et al., 2006). Additionally, it stands out for incorporating factors that have previously been identified in the international literature, but not yet explored in national studies, and that influence earnings management. These factors include CEOs' demographic characteristics, macroeconomic factors, and CEO duality. Thus, this study contributes to the earnings management and behavioral finance literatures and fills an important research gap regarding elements that may influence unethical practices that are harmful to stakeholders in emerging markets.

Resumo em Inglês:

Abstract Purpose This study investigates the efficiency of Big Safe Dividends (BSD) as an investment strategy for building successful portfolios in the Brazilian stock market. Theoretical framework Using Carlson’s (2010) model, stocks with high dividend potential are identified and portfolios of 10, 15, 20, and more stocks are constructed. These portfolios are analyzed over the period from 2010 to 2023. Design/methodology/approach The performance of the BSD portfolios is compared to the main Brazilian stock market indices (IBOV, IDIV, IBrX, and IGC). The alpha generation of these portfolios is assessed using OLS regression models based on multi-factor asset pricing models, incorporating Fama and French’s (1992, 1993) five risk factors, Carhart’s (1997) momentum factor, and Amihud’s (2002) liquidity factor. Findings The results show that BSD portfolios consistently outperform the four benchmark indices over the period analyzed. The study confirms that the use of BSD is effective in forming stock portfolios that generate positive and significant alphas. Practical & social implications of research The primary contribution of this study is the evidence supporting BSD as a valid indicator of a dividend factor, showing that the criteria for selecting companies that pay big and safe dividends successfully capture dividend risk, which is priced in the Brazilian market. Originality/value This finding is unique in the context of investment strategies related to dividend investing in Brazil, offering novel insights for investors focusing on dividend-based portfolios.

Resumo em Inglês:

Abstract Purpose This study examines the influence of cultural controls on affective commitment in a family firm, mediated by feedback/feedforward, work pressure, and counterproductive behaviors. Theoretical framework Under the lens of social exchange theory, it is postulated that cultural controls have a direct effect on affective and indirect commitment through feedback/feedforward, work pressure and counterproductive behaviors. Design/methodology/approach The hypotheses were tested with data from a survey carried out with employees of a family firm, using structural equation modeling. Findings The research results show that there is a direct positive relationship between cultural controls and affective commitment. Cultural controls positively influence feedback/feedforward and work pressure, but no negative influence on counterproductive behaviors was observed. Also, positive influence of feedback/feedforward on affective commitment was found, but not work pressure, and not even negative influence of counterproductive behaviors. Practical & social implications of research The research findings contribute to the literature and managerial practice by revealing that cultural controls directly impact the affective commitment of employees and indirectly through the mediating effect of feedback/feedforward, work pressure, and counterproductive behaviors. This indicates that even after the IPO, cultural aspects continue to influence the behavior of the employees of the researched family firm. Originality/value The study is relevant in revealing, in the light of social exchange theory, the effects of cultural controls on the affective commitment of employees of the family firm, with the intervention of feedback/feedforward.

Resumo em Inglês:

Abstract Purpose This paper evaluates the influence of corporate governance and ownership concentration on subsidized financing in Brazil. Theoretical framework The effect of governance and ownership concentration on subsidized debt is analyzed from the perspective of agency conflicts (Agency Theory) and company behavior in relation to debt (Trade off and Pecking Order Theories). Design/methodology/approach Corporate governance is approximated by an index and presence on the Novo Mercado. Models are estimated by FGLS and Logit for a panel with 1387 annual observations of 147 companies with more liquidity on B3 in the period 2010-2019. Findings Ownership concentration has a positive quadratic relationship with subsidized debt, which was not sensitive to corporate governance. There is a preference for subsidized debt by managers in companies with low ownership concentration and by controlling shareholders in companies with high concentration. The more lenient monitoring from subsidized debt’s creditor may be an explanatory factor. In addition, companies with high ownership concentration face difficulties for share issuance and consider it uninteresting. All that leads these firms to intensify debt raising. Practical & social implications of research It may be interesting for the government strengthening the analysis of corporate governance aspects in the assignment of subsidized credit. Originality/value The recent evolution and the determinants of subsidized debt in Brazil are analyzed under the agency conflicts approach. This is an innovative approach that takes into account the specialization of debt composition and an important funding source.

Resumo em Inglês:

Abstract Purpose This paper develops a case study focusing on the Portuguese Air Forces, first to identify the roles of the internal audit (IA) and then to analyse its influence on organisation sustainability, while also exploring the moderating effect of human resource management practices (HRMPs). Theoretical framework This research draws on empirical work on the roles and activities performed by IA in the private sector and human capital theory to assess the effect of HRMPs on performance. Design/methodology/approach The study uses the survey method and data were collected through a questionnaire made available on an online platform. The study applies an ordinary least squares regression model. Findings This study shows that IA provides assurance and advisory services and that IA is positively related to sustainability orientation, particularly in the governance and social dimensions. The moderating effect of HRMPs is felt only in the environmental dimension. Practical & social implications of research This study reinforces the literature on the relationship between IA effectiveness and sustainability, provides insights into the effectiveness of IA as reported by auditors themselves, identifies the portfolio of functions performed by IA, and points to improvements to be made in IA management. Originality/value The topics studied are explored for the first time in the context of the Armed Forces, and the analysis of the moderating effect of HMRPs on the relationship between IA and sustainability is pioneering.