EARNINGS MANAGEMENT AND INSTITUTIONAL INVESTORS PRESENCE IN BRAZILIAN FIRMS

The research aimed to investigate whether the presence of institutional investors in ownership structure of the companies listed on the BM&FBovespa affects earnings management level disclosed in its financial statements. Additionally it examines whether such a relationship may have been impa...

Descripción completa

Detalles Bibliográficos
Autores: Holanda, Allan Pinheiro, Rebouças, Sílvia Maria Dias Pedro, Coelho, Antonio Carlos Dias
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2013
País:Brasil
Institución:Universidade Federal do Rio Grande do Sul (UFRGS)
Repositorio:ConTexto
Idioma:portugués
OAI Identifier:oai:seer.ufrgs.br:article/32274
Acceso en línea:https://seer.ufrgs.br/index.php/ConTexto/article/view/32274
Access Level:acceso abierto
Palabra clave:Investidores institucionais
Gerenciamento de resultados
Governança corporativa
Institutional investors
Earnings management
Corporate governance
Descripción
Sumario:The research aimed to investigate whether the presence of institutional investors in ownership structure of the companies listed on the BM&FBovespa affects earnings management level disclosed in its financial statements. Additionally it examines whether such a relationship may have been impacted by the relevance of its stake in the firm. Earnings management is measured by metrics used in the study Earnings management and investor protection: an international comparison (2003). The hypothesis that the presence of this class of investors inhibits the practice of earnings management was tested by logistic regression. Institutional investors occurrence in ownership structure of researched sample - 344 firms listed on BM&FBovespa, in the period 2006 to 2010 – wasn’t significant with earnings management measures, leading to hypothesis rejection. Inference that institutional investors in Brazil does not seem to be informational efficient enough to segregate companies practicing earnings management is mandatory, accepting low information quality in accounting reports offered by firms in Brazilian market.