EFFECTS OF DISCRETIONARY ACCRUALS AND HEDGING TRANSACTIONS ON THE VALUE OF BRAZILIAN COMPANIES
DOI:
https://doi.org/10.21680/2176-9036.2018v10n2ID13341Keywords:
Discretionary accruals. Hedging transactions. Value of companies.Abstract
This study objective to identify the effects of discretionary accruals and hedge transactions on the value of Brazilian companies, as measured by proxy Tobin’s Q. Thus, research was conducted a descriptive methodology, with approach quantitative and documentary analysis. The sample comprised 234 Brazilian non-financial companies at the period of 2011 to 2013. Then, Statistical techniques such as regression of panel data were used for the analysis. The findings confirm the literature that the accruals are negatively related to the value of the companies and the hedge transactions are positively related to the value of the companies in the Brazilian scenario. Therefore it has been observed that the opportunist behavior of the managers with the objective of gaining their own benefits ends up being perceived by the market, which in turn penalizes the company with the reduction in the value of its stocks. However, the use of hedge derivatives by the organizations leads the market to the perception of lower risk of the company, contributing to the increase of its value. As has been noted, such results have the potential to contribute to several information users, among them academics, investors and, above all, managers, who come to know the effects of discretionary accruals and of the hedge transactions on the value of the companies, being this primordial to maintain the organizations that manage perennials in the current competitive environment, happening to carry out actions that bring credibility and relative security to the investors that, consequently, will maximize the value of the company in the stock market.
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