Earnings management and judicial recovery: evidence for brazilian companies

Autores

DOI:

https://doi.org/10.21680/2176-9036.2024v16n2ID36722

Palavras-chave:

Earnings management, performance, judicial recovery, Brazilian companies.

Resumo

Purpose: This study investigated the relationship between judicial recovery and insolvency with the Real Earnings Management (REM) level of publicly traded Brazilian companies in the period 2016-2020.

Methodology: The estimated econometric model was panel data regression. The dependent variable was the level of REM measured based on Roychowdhury (2006), which estimates the manipulation of real activities through the analysis of abnormal movements in operating cash flow, discretionary expenses and production costs. The sample collected from 2016 to 2020 consists of 723 non-financial companies.

Results: As main results, the study was able to demonstrate that there is an inverse relationship between judicial recovery and insolvency with earnings management. In other words, companies that are in judicial recovery or insolvent tend to have less earnings management. The findings of this research suggest that managers of companies undergoing judicial recovery have less incentive to engage in discretionary practices, as they are thus able to highlight their financial difficulties and obtain the judicial benefits of the process.

Contributions of the Study: Although many studies evaluate the factors that influence earnings management, this work seeks to contribute to the study of accounting earnings management and uses an operational proxy, associating it with companies undergoing judicial recovery. Furthermore, with evidence of less earnings management by these companies, there is a possible improvement in the shareholders' perspective regarding the future of the company's finances, thus also contributing to investors' decision-making.

 

Downloads

Não há dados estatísticos.

Biografia do Autor

Gustavo Sousa Ribeiro, Federal University of Uberlândia (UFU)

Doctoral student in the Postgraduate Program in Administration (PPGA) at the Federal University of Uberlândia (UFU), Brazil. Master in Organizational Management (PPGGO) from the University of Uberlândia (UFU).

Luciana Carvalho, Federal University of Uberlândia (UFU)

Doctor in Economics from the Federal University of Uberlândia (UFU), Brazil

Arthur Antonio Silva Rosa, University of Uberlândia (UFU)

Doctor in Administration from the Federal University of Uberlândia (UFU), Brazil

Referências

Akoglu, H. (2018). User's guide to correlation coefficients. Turkish journal of emergency medicine, 18(3), 91-93. https://doi.org/10.1016/j.tjem.2018.08.001

Altman, E. I. (1993). Corporate Financial Distress and Bankruptcy (2nd ed.). John Wiley & Sons.

Ali, A., & Zhang, W. (2015). CEO tenure and earnings management. Journal of Accounting and Economics, 59(1), 60-79. https://doi.org/10.1016/j.jacceco.2014.11.004

Assenso-Okofo, O., Jahangir Ali, M., & Ahmed, K. (2021). The impact of corporate governance on the relationship between earnings management and CEO compensation. Journal of Applied Accounting Research, 22(3), 436-464. https://doi.org/10.1108/JAAR-11-2019-0158

Barros, C. M. E., Soares, R. O., & Lima, G. S. F. (2013). A relação entre governança corporativa e gerenciamento de resultados em empresas brasileiras. Revista de Contabilidade e Organizações, 7(19), 27-39.

Benedetti, K. B., & Hahn, R. C. (2023). Análise Do Comportamento Dos Índices Econômico-Financeiros De Empresas Que Utilizam De Recuperação Judicial. Revista Eletrônica de Ciências Contábeis, 12(2), 146-177.

Boa Vista Serviços. (2021). Pedidos de falência avançam 12,7% em 2020.

Borges, S. R. P., & Rech, I. J. (2021). Efetividade dos Parcelamentos Fiscais para a Solvência Corporativa no Brasil. Advances in Scientific and Applied Accounting, 14(1), 72-89. http://dx.doi.org/10.14392/asaa.2021140103

Brigham, E. F. et. al. (2001). Administração financeira. Teoria e prática. Atlas.

Coelho, E. G., Barros, C. M. E., Scherer, L. M., & Colauto, R. D. (2017). Gerenciamento de resultado em empresas insolventes: um estudo com os países do Brics. Enfoque: Reflexão Contábil, 36(2), 95-113. https://doi.org/10.4025/enfoque.v36i2.31765

Dal Magro, C. B., Dani, A. C., & Klann, R. C. (2019). Remuneração variável no tempo de mandato é a causa do oportunismo dos CEOs? Evidências do gerenciamento de resultados no Brasil. Enfoque: Reflexão Contábil, 38, 77-92. https://doi.org/10.4025/enfoque.v38i3.42193

Dancey, C. P., & Reidy, J. (2006). Estatística sem matemática para Psicologia usando o SPSS para Windows (3a ed.). Porto Alegre, RS: Artmed

Fields, T. D., Lys, T. Z., & Vincent, L. (2001). Empirical research on accounting choice. Journal of accounting and economics, 31(1-3), 255-307.

Fiirst, C., Pamplona, E., Bambino, A. C., & Klann, R. C. (2020). Gerenciamento de Resultados em Empresas Brasileiras nos Anos Antecedentes ao Pedido de Recuperação Judicial ou Falência. Desafio Online, 8(1), 1-26.

Gil, A. C. Metodologia da pesquisa. Atlas, 2002.

Gonçalves, T., Barros, V., & Serra, G. (2022). Political elections uncertainty and earnings management: Does firm size really matter?. Economics Letters, p. 110438. https://doi.org/10.1016/j.econlet.2022.110438

Gu, Z., Lee, C. W. J., & Rosett, J. G. (2005). What determines the variability of accounting accruals?. Review of Quantitative Finance and Accounting, 24(3), 313-334. https://doi.org/10.1007/s11156-005-6869-1

Guimarães, A., & Moreira, T. B. S. (2008). Previsão de insolvência: um modelo baseado em índices contábeis com utilização da análise discriminante. Revista de Economia Contemporânea, 12, 151-178. https://doi.org/10.1590/S1415-98482008000100006

Gunny, K. (2005). What Are the Consequences of Real Earnings Management? [Doctoral dissertation, University of California]. ProQuest Dissertations and Theses Global.

Grossert, R. R., Silva, V. A. B., Netto, H. G., & Sampaio, J. (2022). Quais os principais mecanismos dereorganização adotados pelas empresas brasileiras em recuperação judicial?. Revista Brasileira de Finanças, 20(4), 0-0.

Guo, J., Huang, P., Zhang, Y., & Zhou, N. (2015). Foreign ownership and real earnings management: Evidence from Japan. Journal of International Accounting Research, 14(2), 185-213. https://doi.org/10.2308/jiar-51274

Han, J. C. Y., & Wang, S. (1998) Political Costs and Earnings Management of Oil Companies during the 1990 Persian Gulf Crisis. The Accounting Review. 73(1), 103-117. https://www.jstor.org/stable/248343.

Healy P. P. M., & Wahlen, J. M. (1999). A review of the earnings management literature and its implications for standard setting. Accounting Horizons, 13(4), 365-383. http://dx.doi.org/10.2308/acch.1999.13.4.365

Inekwe, J. N., Jin, Y., & Valenzuela, M. R. (2018). The effects of financial distress: Evidence from US GDP growth. Economic Modelling, 72, 8-21. https://doi.org/10.1016/j.econmod.2018.01.001

Jones, J. J. (1991) Earnings management during im-port relief investigations. Journal of accounting research, 29(2), 193-228. https://doi.org/10.2307/2491047

Kang, S., & Sivaramakrishnan, K. (1995) Issues in testing earnings management and an instru-mental variable approach. Journal of Accounting Research, 33(2), 353-367. https://doi.org/10.2307/2491492

Kayo, E. K., & Famá, R. (1996). Dificuldades financeiras, custos de agência e o instituto jurídico da concordata. Cadernos de Pesquisa em Administração, 1(3), 1-8.

Lakatos, E., & Marconi, M. A. (2003). Fundamentos de Metodologia Científica. 5.ed. Atlas.

Luo, B. (2019). Effects of auditor-provided tax services on book-tax differences and on investors' mispricing of book-tax differences. Advances in Accounting, 47(1), 1-15. https://doi.org/10.1016/j.adiac.2019.100434

Martinez, A. L. (2001). Gerenciamento dos resultados contábeis: estudo empírico das companhias abertas brasileiras. 2001. 153 f. Tese (Doutorado em Ciências Contábeis) – Universidade de São Paulo, São Paulo, 2001.

Martinez, A. L. (2008). Detectando earnings management no Brasil: estimando os accruals discricionários. Revista Contabilidade & Finanças, 19(46), 7-17. https://doi.org/10.1590/S1519-70772008000100002

Martinez, A. L. (2013). Earnings management in Brazil: a survey of the literature. Brazilian Business Review, 10(4), 1-29. https://doi.org/10.15728/bbr.2013.10.4.1

Mattos, E., & Martins Proença, J. (2021). No fim, quantas empresas entraram em recuperação judicial em 2020? Consultor Jurídico. https://www.conjur.com.br/2021-fev-01/mattos-proenca-empresas-recuperacao-judicial-2020

Nigam, N., & Boughanmi, A. (2017). Can innovative reforms and practices efficiently resolve financial distress?. Journal of Cleaner Production, 140(3), 1860- 1871. https://doi.org/10.1016/j.jclepro.2016.09.190

Oliveira, A. G. D., Müller, A.N., & Nakamura, W.T. (2000) A utilização das informações geradas pelo sistema de informação contábil como subsídio aos processos administrativos nas pequenas empresas. Revista FAE, 3(3), 1-12.

Oliveira, M. M. (2011) Manipulação dos Resultados por Empresas em Dificuldades Financeiras: Estudo para um Caso Português. Dissertação de Mestrado. Universidade do Porto, Portugal.

Opler, T., & Titman, S. (1994). Financial distress and corporate performance. Journal of Finance, 49(1), 1015–1040. https://doi.org/10.2307/2329214

Osma, B. G., Gomez-Conde, J., & Lopez-Valeiras, E. (2022). Management control systems and real earnings management: Effects on firm performance. Management Accounting Research, p. 100781. https://doi.org/10.1016/j.mar.2021.100781

Pêgas, P. H. (2017). Manual de contabilidade tributária. 9 ed. Atlas.

Platt, H. D., & Platt, M. (2006). Comparing financial distress and bankruptcy [Working Paper]. Review of Applied Economics, 2(2). https://ssrn.com/abstract=876470

Queiroz, A. D. S., Dias Filho, J. M., & Gonçalves, D. E. S. (2018). Estresse financeiro e gerenciamento de resultados: um estudo com companhias brasileiras listadas na B3. Revista de Gestão, Finanças e Contabilidade, 8(3), 58-76. https://doi.org/10.18028/rgfc.v8i3.7466

Richardson, V. J. (2000). Information asymmetry and earnings management: Some evidence. Review of quantitative finance and accounting, 15(4), 325-347.

Ross, S. A. et. al. (1995). Administração financeira. Atlas.

Roychowdhury, S. (2006). Earnings Management through Real Activities Manipulation. Journal of Accounting and Economics, 42(3), 335-370. https://doi.org/10.1016/j.jacceco.2006.01.002

Sayari, N., & Mugan, C. S. (2020). Industry specific financial distress modeling. BRQ Business Research Quarterly, 20(1). https://doi.org/10.1016/j.brq.2016.03.003

Schipper, K. (1989). Commentary on earnings management. Accounting Horizons, 3(1), 91-102.

Silva, V. A. B. (2020). Dificuldade Financeira e Recuperação de Empresas: Uma Pesquisa de Contribuições Teóricas e Empíricas. Revista Brasileira de Gestão de Negócios, 22(Special Issue), 401-420. https//doi.org/10.7819/rbgn.v22i0.4057

Souza, P. V. S. D., Gonçalves, R. D. S., & Silva, C. A. T. (2022). O Impacto da IFRS 15 na Qualidade dos Accruals e no Gerenciamento de Resultados das Empresas Brasileiras de Capital Aberto. Revista Brasileira de Gestão de Negócios, 24, 675-691. https://doi.org/10.7819/rbgn.v24i4.4197

Sousa, A. M., Bortoli, C., & Soares, R. O. (2023). Remuneração Variável dos Executivos e Gerenciamento de Resultados Em Países Emergentes: o Caso do Brasil. Contabilidade Vista & Revista, 34(3), 105-137.

Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The journal of finance, 52(2), 737-783.

Tron, A., Dallocchio, M., Ferri, S., & Colantoni, F. (2023). Corporate governance and financial distress: Lessons learned from an unconventional approach. Journal of Management and Governance, 27(2), 425-456.

Vorst, P. (2016). Real earnings management and long-term operating performance: The role of reversals in discretionary investment cuts. The Accounting Review, 91(4), 1219-1256. https://doi.org/10.2308/accr-51281

Watts, R. L., & Zimmerman, J. L. (1986). Positive accounting theory.

Xie, B., Davidson III, W. N., & Dadalt, P. J. (2003). Earnings management and corporate governance: the role of the board and the audit committee. Journal of corporate finance, 9(3), 295-316. https://doi.org/10.1016/S0929-1199(02)00006-8

Publicado

01-07-2024

Como Citar

RIBEIRO, G. S. .; CARVALHO, L. .; ROSA, A. A. S. . Earnings management and judicial recovery: evidence for brazilian companies. REVISTA AMBIENTE CONTÁBIL - Universidade Federal do Rio Grande do Norte - ISSN 2176-9036, [S. l.], v. 16, n. 2, 2024. DOI: 10.21680/2176-9036.2024v16n2ID36722. Disponível em: https://periodicos.ufrn.br/ambiente/article/view/36722. Acesso em: 16 jul. 2024.

Edição

Seção

Seção 7: Internacional (S7)