Determining Factors of the Quality of the Financial Reporting of the Banking Companies Listed in Brazil Bolsa Balcão – B3
Published
Apr 18, 2023
Almetrics
Dimensions
Google Scholar
##plugins.themes.bootstrap3.article.details##
Abstract
This study aimed to analyze the determinants of the quality of accounting information of banks listed on B3. We measured the quality of accounting information through a set of 12 indicators built in the study of Gabriel and Silveira (2011). Subsequently, we used an econometric panel data model for a sample of 20 banks between 2014 and 2017. The results show that the banks audited by the big four have an audit committee, a lower indebtedness, and a lower ROE, reflecting a better quality of accounting information. These findings contribute to Brazilian inspection and regulatory bodies regarding the practices that may qualify the accounting information disclosed by banks to their investors. It also includes Brazilian banks in the empirical studies on the quality of accounting information.
Keywords
Quality of accounting information, Corporate Governance, Banks
References
Akerlof, G. A. (1970). The Market for "Lemons": Quality Uncertainty and the Market Mechanism. Quarterly Journal of Economics, 84(3), 488–500. https://doi.org/10.1016/B978-0-12-214850-7.50022-X
Almeida, J. E. F., Lima, G. A. S. F., & Lima, I. S. (2009). Corporate governance and ADR effects on earnings quality in the Brazilian capital markets. Corporate Ownership and Control, 7(1), 52. https://doi.org/10.22495/cocv7i1p5
Arrow, K. J. (1963). Uncertainty and the Welfare Economics of Medical Care. American Economic Review, 53(5), 941-973. https://doi.org/10.1016/b978-0-12-214850-7.50028-0
Berle, A., & Means, G. (1988). A moderna sociedade anônima e a propriedade privada (3a ed.). São Paulo: Nova Cultural.
Boycko, M., Shleifer, A., & Vishny, R. W. (1996). A theory of privatisation. The Economic Journal, 106(435), 309-319. https://doi.org/10.2307/2235248
Bushman, R. M., & Smith, A. J. (2001). Financial accounting information and corporate governance. Journal of accounting and Economics, 32(1-3), 237-333. https://doi.org/10.1016/S0165-4101(01)00027-1
Coase, R. H. (1937). The nature of the firm. Economica, 4(16), 386-405. https://doi.org/10.2307/2626876
Coase, R. H. (2013). The problem of social cost. The journal of Law and Economics, 56(4), 837-877. https://www.journals.uchicago.edu/doi/abs/10.1086/674872
Core, J. E., Holthausen, R. W., & Larcker, D. F. (1999). Corporate governance, chief executive officer compensation, and firm performance. Journal of financial economics, 51(3), 371-406. https://doi.org/10.1016/S0304-405X(98)00058-0
Dantas, J. A., & Medeiros, O. R. D. (2015). Determinantes de qualidade da auditoria independente em bancos. Revista Contabilidade & Finanças, 26, 43-56. https://doi.org/10.1590/1808-057x201400030
Fama, E. F. (1980). Agency problems and the theory of the firm. Journal of political economy, 88(2), 288-307. https://www.journals.uchicago.edu/doi/abs/10.1086/260866
Farinha, J., Mateus, C., & Soares, N. (2018). Cash holdings and earnings quality: evidence from the Main and Alternative UK markets. International Review of Financial Analysis, 56, 238-252. https://doi.org/10.1016/j.irfa.2018.01.012
Gabriel, F. (2011). Impacto da adesão às práticas recomendadas de governança corporativa no índice de qualidade da informação contábil (Doctoral dissertation, Universidade de São Paulo).
Gabriel, F., & Silveira, A. D. (2011, July). Qualidade da informação contábil e análise de sua relação com a estrutura de governança corporativa das firmas no Brasil. In Congresso USP de Controladoria e Contabilidade (Vol. 11).
Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of accounting and economics, 31(1-3), 405-440. https://doi.org/10.1016/S0165-4101(01)00018-0
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of financial economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
Kanagaretnam, K., Lim, C. Y., & Lobo, G. J. (2010). Auditor reputation and earnings management: International evidence from the banking industry. Journal of Banking & Finance, 34(10), 2318-2327. https://doi.org/10.1016/j.jbankfin.2010.02.020
Leuz, C., & Verrecchia, R. E. (2000). The economic consequences of increased disclosure. Journal of accounting research, 91-124. https://doi.org/10.2307/2672910
Lopes, I. F., Gasparetto, V., Schnorrenberger, D., & Lunkes, R. J. (2017). Relação do desempenho financeiro e dos riscos operacionais na remuneração de executivos de empresas brasileiras com ADRs. Contabilidade Vista & Revista, 28(3), 22-52. https://revistas.face.ufmg.br/index.php/contabilidadevistaerevista/article/view/3416
Mangala, D., & Singla, N. (2021). Do corporate governance practices restrain earnings management in banking industry? Lessons from India. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/JFRA-02-2021-0060
Martins, O. S., & Ventura Júnior, R. (2020). Influência da governança corporativa na mitigação de relatórios financeiros fraudulentos. RBGN: Revista Brasileira de Gestão de Negócios, 22(1), 65-84. https://doi.org/10.7819/rbgn.v22i1.4039
Moura, G. D., Ziliotto, K., & Mazzioni, S. (2016). Fatores determinantes da qualidade da informação contábil em companhias abertas listadas na BM&FBovespa. Revista de Contabilidade e Organizações, 10(27), 17-30. https://doi.org/10.11606/rco.v10i27.107810
Moura, G. D., Zanchi, M. M., Mazzioni, S., Macêdo, F. F., & Krueger, S. D. (2017). Determinantes da qualidade da informação contábil em grandes companhias abertas listadas na BM&FBOVESPA. Revista de Educação e Pesquisa em Contabilidade (repec), 11(3). https://doi.org/10.17524/repec.v11i3.1572
Nunes, A. A. D. O., Ferreira, R. D. C. L., Mantovani, T. B., & Krauter, E. (2016). Uma comparação da qualidade da informação contábil entre as empresas de capital misto e as de controle privado no Brasil. Revista de Gestão, Finanças e Contabilidade, 6(1), 76-91. http://dx.doi.org/10.18028/2238-5320/rgfc.v6n1p76-91
Queiroz, J. M., & de Almeida, J. E. F. (2017). Efeitos das Hipóteses da Teoria Positiva da Contabilidade na qualidade da informação contábil. Revista Universo Contábil, 13(3), 50-69. http://dx.doi.org/10.4270/ruc.20173%25p
Razali, W. A. A. W. M., & Arshad, R. (2014). Disclosure of corporate governance structure and the likelihood of fraudulent financial reporting. Procedia-Social and Behavioral Sciences, 145, 243-253. https://doi.org/10.1016/j.sbspro.2014.06.032
Salem, R., Usman, M., & Ezeani, E. (2021). Loan loss provisions and audit quality: Evidence from MENA Islamic and conventional banks. The Quarterly Review of Economics and Finance, 79, 345-359. https://doi.org/10.1016/j.qref.2020.07.002
Schiehll, E., & Martins, H. C. (2016). Cross‐national governance research: A systematic review and assessment. Corporate Governance: An International Review, 24(3), 181-199. https://doi.org/10.1111/corg.12158
Silva, G. C., Takamatsu, R. T., & Avelino, B. C. (2017). Adesão aos Níveis Diferenciados de Governança Corporativa e Qualidade das Informações Contábeis. ConTexto, 17(35). https://www.seer.ufrgs.br/ConTexto/article/view/64676
Standard and Poor's (S&P). (2022). Disponível em: https://pages.marketintelligence.spglobal.com/Top-100-Bank-Rankings-2022-Latin-Americas-50-Largest-Banks-Content-download.html (acessado em 13 de setembro de 2022).
Verdi, R. S. (2006). Financial reporting quality and investment efficiency. Available at SSRN 930922. https://dx.doi.org/10.2139/ssrn.930922
Verrecchia, R. E. (2001). Essays on disclosure. Journal of accounting and economics, 32(1-3), 97-180. https://doi.org/10.1016/S0165-4101(01)00025-8
Watts, R. L., & Zimmerman, J. L. (1986). Positive accounting theory. https://ssrn.com/abstract=928677
Williamson, O. E. (1991). Mercados y jerarquías: su análisis y sus implicaciones antitrust (No. 330.1/W72mE).
Almeida, J. E. F., Lima, G. A. S. F., & Lima, I. S. (2009). Corporate governance and ADR effects on earnings quality in the Brazilian capital markets. Corporate Ownership and Control, 7(1), 52. https://doi.org/10.22495/cocv7i1p5
Arrow, K. J. (1963). Uncertainty and the Welfare Economics of Medical Care. American Economic Review, 53(5), 941-973. https://doi.org/10.1016/b978-0-12-214850-7.50028-0
Berle, A., & Means, G. (1988). A moderna sociedade anônima e a propriedade privada (3a ed.). São Paulo: Nova Cultural.
Boycko, M., Shleifer, A., & Vishny, R. W. (1996). A theory of privatisation. The Economic Journal, 106(435), 309-319. https://doi.org/10.2307/2235248
Bushman, R. M., & Smith, A. J. (2001). Financial accounting information and corporate governance. Journal of accounting and Economics, 32(1-3), 237-333. https://doi.org/10.1016/S0165-4101(01)00027-1
Coase, R. H. (1937). The nature of the firm. Economica, 4(16), 386-405. https://doi.org/10.2307/2626876
Coase, R. H. (2013). The problem of social cost. The journal of Law and Economics, 56(4), 837-877. https://www.journals.uchicago.edu/doi/abs/10.1086/674872
Core, J. E., Holthausen, R. W., & Larcker, D. F. (1999). Corporate governance, chief executive officer compensation, and firm performance. Journal of financial economics, 51(3), 371-406. https://doi.org/10.1016/S0304-405X(98)00058-0
Dantas, J. A., & Medeiros, O. R. D. (2015). Determinantes de qualidade da auditoria independente em bancos. Revista Contabilidade & Finanças, 26, 43-56. https://doi.org/10.1590/1808-057x201400030
Fama, E. F. (1980). Agency problems and the theory of the firm. Journal of political economy, 88(2), 288-307. https://www.journals.uchicago.edu/doi/abs/10.1086/260866
Farinha, J., Mateus, C., & Soares, N. (2018). Cash holdings and earnings quality: evidence from the Main and Alternative UK markets. International Review of Financial Analysis, 56, 238-252. https://doi.org/10.1016/j.irfa.2018.01.012
Gabriel, F. (2011). Impacto da adesão às práticas recomendadas de governança corporativa no índice de qualidade da informação contábil (Doctoral dissertation, Universidade de São Paulo).
Gabriel, F., & Silveira, A. D. (2011, July). Qualidade da informação contábil e análise de sua relação com a estrutura de governança corporativa das firmas no Brasil. In Congresso USP de Controladoria e Contabilidade (Vol. 11).
Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of accounting and economics, 31(1-3), 405-440. https://doi.org/10.1016/S0165-4101(01)00018-0
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of financial economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
Kanagaretnam, K., Lim, C. Y., & Lobo, G. J. (2010). Auditor reputation and earnings management: International evidence from the banking industry. Journal of Banking & Finance, 34(10), 2318-2327. https://doi.org/10.1016/j.jbankfin.2010.02.020
Leuz, C., & Verrecchia, R. E. (2000). The economic consequences of increased disclosure. Journal of accounting research, 91-124. https://doi.org/10.2307/2672910
Lopes, I. F., Gasparetto, V., Schnorrenberger, D., & Lunkes, R. J. (2017). Relação do desempenho financeiro e dos riscos operacionais na remuneração de executivos de empresas brasileiras com ADRs. Contabilidade Vista & Revista, 28(3), 22-52. https://revistas.face.ufmg.br/index.php/contabilidadevistaerevista/article/view/3416
Mangala, D., & Singla, N. (2021). Do corporate governance practices restrain earnings management in banking industry? Lessons from India. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/JFRA-02-2021-0060
Martins, O. S., & Ventura Júnior, R. (2020). Influência da governança corporativa na mitigação de relatórios financeiros fraudulentos. RBGN: Revista Brasileira de Gestão de Negócios, 22(1), 65-84. https://doi.org/10.7819/rbgn.v22i1.4039
Moura, G. D., Ziliotto, K., & Mazzioni, S. (2016). Fatores determinantes da qualidade da informação contábil em companhias abertas listadas na BM&FBovespa. Revista de Contabilidade e Organizações, 10(27), 17-30. https://doi.org/10.11606/rco.v10i27.107810
Moura, G. D., Zanchi, M. M., Mazzioni, S., Macêdo, F. F., & Krueger, S. D. (2017). Determinantes da qualidade da informação contábil em grandes companhias abertas listadas na BM&FBOVESPA. Revista de Educação e Pesquisa em Contabilidade (repec), 11(3). https://doi.org/10.17524/repec.v11i3.1572
Nunes, A. A. D. O., Ferreira, R. D. C. L., Mantovani, T. B., & Krauter, E. (2016). Uma comparação da qualidade da informação contábil entre as empresas de capital misto e as de controle privado no Brasil. Revista de Gestão, Finanças e Contabilidade, 6(1), 76-91. http://dx.doi.org/10.18028/2238-5320/rgfc.v6n1p76-91
Queiroz, J. M., & de Almeida, J. E. F. (2017). Efeitos das Hipóteses da Teoria Positiva da Contabilidade na qualidade da informação contábil. Revista Universo Contábil, 13(3), 50-69. http://dx.doi.org/10.4270/ruc.20173%25p
Razali, W. A. A. W. M., & Arshad, R. (2014). Disclosure of corporate governance structure and the likelihood of fraudulent financial reporting. Procedia-Social and Behavioral Sciences, 145, 243-253. https://doi.org/10.1016/j.sbspro.2014.06.032
Salem, R., Usman, M., & Ezeani, E. (2021). Loan loss provisions and audit quality: Evidence from MENA Islamic and conventional banks. The Quarterly Review of Economics and Finance, 79, 345-359. https://doi.org/10.1016/j.qref.2020.07.002
Schiehll, E., & Martins, H. C. (2016). Cross‐national governance research: A systematic review and assessment. Corporate Governance: An International Review, 24(3), 181-199. https://doi.org/10.1111/corg.12158
Silva, G. C., Takamatsu, R. T., & Avelino, B. C. (2017). Adesão aos Níveis Diferenciados de Governança Corporativa e Qualidade das Informações Contábeis. ConTexto, 17(35). https://www.seer.ufrgs.br/ConTexto/article/view/64676
Standard and Poor's (S&P). (2022). Disponível em: https://pages.marketintelligence.spglobal.com/Top-100-Bank-Rankings-2022-Latin-Americas-50-Largest-Banks-Content-download.html (acessado em 13 de setembro de 2022).
Verdi, R. S. (2006). Financial reporting quality and investment efficiency. Available at SSRN 930922. https://dx.doi.org/10.2139/ssrn.930922
Verrecchia, R. E. (2001). Essays on disclosure. Journal of accounting and economics, 32(1-3), 97-180. https://doi.org/10.1016/S0165-4101(01)00025-8
Watts, R. L., & Zimmerman, J. L. (1986). Positive accounting theory. https://ssrn.com/abstract=928677
Williamson, O. E. (1991). Mercados y jerarquías: su análisis y sus implicaciones antitrust (No. 330.1/W72mE).
How to Cite
Albuquerque Ventura, A. F., Figueiredo, J. C. M., Ventura Júnior, R., Teixeira, B. de M., & Macagnan, C. B. (2023). Determining Factors of the Quality of the Financial Reporting of the Banking Companies Listed in Brazil Bolsa Balcão – B3. Cuadernos De Contabilidad, 24. https://doi.org/10.11144/Javeriana.cc24.dfqf
Section
Artículos
This work is licensed under a Creative Commons Attribution 4.0 International License.