Ownership and Control Struture, Corporate Governance and Income Smoothing in Brazil

Detalhes bibliográficos
Autor(a) principal: Torres, Damiana
Data de Publicação: 2010
Outros Autores: Bruni, Adriano Leal, Martinez, Antonio Lopo, Rivera-Castro, Miguel Angel
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Institucional da UFBA
Texto Completo: http://repositorio.ufba.br/ri/handle/ri/25307
Resumo: Income smoothing is a longstanding practice under the more general category of earnings management. As the name suggests, it consists of smoothing out the fluctuations of the income series. This article examines the association between the ownership and control structure, level of corporate governance and origin of capital (foreign or domestic) of Brazilian companies on their propensity to smooth income. Using a sample of nonfinancial firms with shares traded on the São Paulo Stock Exchange (Bovespa) at the end of 2007, we performed covariance analysis based on data from the preceding ten years, where the dependent variable was the index proposed by Eckel, an empirical proxy for smoothing. The results indicate that the more concentrated the shareholding and control structures of Brazilian firms are, both according to overall capital and voting capital, the more intensely they tend to smooth earnings to favor the interests of the majority shareholder. The results also show that this effect is less pronounced for firms with enhanced corporate governance levels and those with foreign capital.
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spelling Torres, DamianaBruni, Adriano LealMartinez, Antonio LopoRivera-Castro, Miguel AngelTorres, DamianaBruni, Adriano LealMartinez, Antonio LopoRivera-Castro, Miguel Angel2018-02-06T19:11:51Z2018-02-06T19:11:51Z2010http://repositorio.ufba.br/ri/handle/ri/25307v. 8, p. 180-192Income smoothing is a longstanding practice under the more general category of earnings management. As the name suggests, it consists of smoothing out the fluctuations of the income series. This article examines the association between the ownership and control structure, level of corporate governance and origin of capital (foreign or domestic) of Brazilian companies on their propensity to smooth income. Using a sample of nonfinancial firms with shares traded on the São Paulo Stock Exchange (Bovespa) at the end of 2007, we performed covariance analysis based on data from the preceding ten years, where the dependent variable was the index proposed by Eckel, an empirical proxy for smoothing. The results indicate that the more concentrated the shareholding and control structures of Brazilian firms are, both according to overall capital and voting capital, the more intensely they tend to smooth earnings to favor the interests of the majority shareholder. The results also show that this effect is less pronounced for firms with enhanced corporate governance levels and those with foreign capital.Submitted by Núcleo de Pós-Graduação Administração (npgadm@ufba.br) on 2018-02-01T20:37:17Z No. of bitstreams: 1 Ownership and Control Struture, Corporate Governance and Income Smoothing in Brazil.pdf: 614176 bytes, checksum: 6f7372c2aac379e73a5668dd024e4807 (MD5)Approved for entry into archive by Maria Angela Dortas (dortas@ufba.br) on 2018-02-06T19:11:51Z (GMT) No. of bitstreams: 1 Ownership and Control Struture, Corporate Governance and Income Smoothing in Brazil.pdf: 614176 bytes, checksum: 6f7372c2aac379e73a5668dd024e4807 (MD5)Made available in DSpace on 2018-02-06T19:11:51Z (GMT). No. of bitstreams: 1 Ownership and Control Struture, Corporate Governance and Income Smoothing in Brazil.pdf: 614176 bytes, checksum: 6f7372c2aac379e73a5668dd024e4807 (MD5) Previous issue date: 2011Corporate Ownership & Controlhttp://dx.doi.org/10.2139/ssrn.1651991reponame:Repositório Institucional da UFBAinstname:Universidade Federal da Bahia (UFBA)instacron:UFBAOwnership and control structurecorporate governanceincome smoothingOwnership and Control Struture, Corporate Governance and Income Smoothing in Brazilinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleinfo:eu-repo/semantics/openAccessengLICENSElicense.txtlicense.txttext/plain1345https://repositorio.ufba.br/bitstream/ri/25307/2/license.txtff6eaa8b858ea317fded99f125f5fcd0MD52ORIGINALOwnership and Control Struture, Corporate Governance and Income Smoothing in Brazil.pdfOwnership and Control Struture, Corporate Governance and Income Smoothing in Brazil.pdfapplication/pdf614176https://repositorio.ufba.br/bitstream/ri/25307/1/Ownership%20and%20Control%20Struture%2c%20Corporate%20Governance%20and%20Income%20Smoothing%20in%20Brazil.pdf6f7372c2aac379e73a5668dd024e4807MD51TEXTOwnership and Control Struture, Corporate Governance and Income Smoothing in Brazil.pdf.txtOwnership and Control Struture, Corporate Governance and Income Smoothing in Brazil.pdf.txtExtracted texttext/plain51204https://repositorio.ufba.br/bitstream/ri/25307/3/Ownership%20and%20Control%20Struture%2c%20Corporate%20Governance%20and%20Income%20Smoothing%20in%20Brazil.pdf.txte0aa2d037adc7e22d677e0de30c9f714MD53ri/253072022-11-03 14:51:18.74oai:repositorio.ufba.br:ri/25307VGVybW8gZGUgTGljZW7vv71hLCBu77+9byBleGNsdXNpdm8sIHBhcmEgbyBkZXDvv71zaXRvIG5vIFJlcG9zaXTvv71yaW8gSW5zdGl0dWNpb25hbCBkYSBVRkJBLgoKIFBlbG8gcHJvY2Vzc28gZGUgc3VibWlzc++/vW8gZGUgZG9jdW1lbnRvcywgbyBhdXRvciBvdSBzZXUgcmVwcmVzZW50YW50ZSBsZWdhbCwgYW8gYWNlaXRhciAKZXNzZSB0ZXJtbyBkZSBsaWNlbu+/vWEsIGNvbmNlZGUgYW8gUmVwb3NpdO+/vXJpbyBJbnN0aXR1Y2lvbmFsIGRhIFVuaXZlcnNpZGFkZSBGZWRlcmFsIGRhIEJhaGlhIApvIGRpcmVpdG8gZGUgbWFudGVyIHVtYSBj77+9cGlhIGVtIHNldSByZXBvc2l077+9cmlvIGNvbSBhIGZpbmFsaWRhZGUsIHByaW1laXJhLCBkZSBwcmVzZXJ2Ye+/ve+/vW8uIApFc3NlcyB0ZXJtb3MsIG7vv71vIGV4Y2x1c2l2b3MsIG1hbnTvv71tIG9zIGRpcmVpdG9zIGRlIGF1dG9yL2NvcHlyaWdodCwgbWFzIGVudGVuZGUgbyBkb2N1bWVudG8gCmNvbW8gcGFydGUgZG8gYWNlcnZvIGludGVsZWN0dWFsIGRlc3NhIFVuaXZlcnNpZGFkZS4KCiBQYXJhIG9zIGRvY3VtZW50b3MgcHVibGljYWRvcyBjb20gcmVwYXNzZSBkZSBkaXJlaXRvcyBkZSBkaXN0cmlidWnvv73vv71vLCBlc3NlIHRlcm1vIGRlIGxpY2Vu77+9YSAKZW50ZW5kZSBxdWU6CgogTWFudGVuZG8gb3MgZGlyZWl0b3MgYXV0b3JhaXMsIHJlcGFzc2Fkb3MgYSB0ZXJjZWlyb3MsIGVtIGNhc28gZGUgcHVibGljYe+/ve+/vWVzLCBvIHJlcG9zaXTvv71yaW8KcG9kZSByZXN0cmluZ2lyIG8gYWNlc3NvIGFvIHRleHRvIGludGVncmFsLCBtYXMgbGliZXJhIGFzIGluZm9ybWHvv73vv71lcyBzb2JyZSBvIGRvY3VtZW50bwooTWV0YWRhZG9zIGVzY3JpdGl2b3MpLgoKIERlc3RhIGZvcm1hLCBhdGVuZGVuZG8gYW9zIGFuc2Vpb3MgZGVzc2EgdW5pdmVyc2lkYWRlIGVtIG1hbnRlciBzdWEgcHJvZHXvv73vv71vIGNpZW5077+9ZmljYSBjb20gCmFzIHJlc3Ryae+/ve+/vWVzIGltcG9zdGFzIHBlbG9zIGVkaXRvcmVzIGRlIHBlcmnvv71kaWNvcy4KCiBQYXJhIGFzIHB1YmxpY2Hvv73vv71lcyBzZW0gaW5pY2lhdGl2YXMgcXVlIHNlZ3VlbSBhIHBvbO+/vXRpY2EgZGUgQWNlc3NvIEFiZXJ0bywgb3MgZGVw77+9c2l0b3MgCmNvbXB1bHPvv71yaW9zIG5lc3NlIHJlcG9zaXTvv71yaW8gbWFudO+/vW0gb3MgZGlyZWl0b3MgYXV0b3JhaXMsIG1hcyBtYW5077+9bSBhY2Vzc28gaXJyZXN0cml0byAKYW8gbWV0YWRhZG9zIGUgdGV4dG8gY29tcGxldG8uIEFzc2ltLCBhIGFjZWl0Ye+/ve+/vW8gZGVzc2UgdGVybW8gbu+/vW8gbmVjZXNzaXRhIGRlIGNvbnNlbnRpbWVudG8KIHBvciBwYXJ0ZSBkZSBhdXRvcmVzL2RldGVudG9yZXMgZG9zIGRpcmVpdG9zLCBwb3IgZXN0YXJlbSBlbSBpbmljaWF0aXZhcyBkZSBhY2Vzc28gYWJlcnRvLgo=Repositório InstitucionalPUBhttp://192.188.11.11:8080/oai/requestopendoar:19322022-11-03T17:51:18Repositório Institucional da UFBA - Universidade Federal da Bahia (UFBA)false
dc.title.pt_BR.fl_str_mv Ownership and Control Struture, Corporate Governance and Income Smoothing in Brazil
title Ownership and Control Struture, Corporate Governance and Income Smoothing in Brazil
spellingShingle Ownership and Control Struture, Corporate Governance and Income Smoothing in Brazil
Torres, Damiana
Ownership and control structure
corporate governance
income smoothing
title_short Ownership and Control Struture, Corporate Governance and Income Smoothing in Brazil
title_full Ownership and Control Struture, Corporate Governance and Income Smoothing in Brazil
title_fullStr Ownership and Control Struture, Corporate Governance and Income Smoothing in Brazil
title_full_unstemmed Ownership and Control Struture, Corporate Governance and Income Smoothing in Brazil
title_sort Ownership and Control Struture, Corporate Governance and Income Smoothing in Brazil
author Torres, Damiana
author_facet Torres, Damiana
Bruni, Adriano Leal
Martinez, Antonio Lopo
Rivera-Castro, Miguel Angel
author_role author
author2 Bruni, Adriano Leal
Martinez, Antonio Lopo
Rivera-Castro, Miguel Angel
author2_role author
author
author
dc.contributor.author.fl_str_mv Torres, Damiana
Bruni, Adriano Leal
Martinez, Antonio Lopo
Rivera-Castro, Miguel Angel
Torres, Damiana
Bruni, Adriano Leal
Martinez, Antonio Lopo
Rivera-Castro, Miguel Angel
dc.subject.por.fl_str_mv Ownership and control structure
corporate governance
income smoothing
topic Ownership and control structure
corporate governance
income smoothing
description Income smoothing is a longstanding practice under the more general category of earnings management. As the name suggests, it consists of smoothing out the fluctuations of the income series. This article examines the association between the ownership and control structure, level of corporate governance and origin of capital (foreign or domestic) of Brazilian companies on their propensity to smooth income. Using a sample of nonfinancial firms with shares traded on the São Paulo Stock Exchange (Bovespa) at the end of 2007, we performed covariance analysis based on data from the preceding ten years, where the dependent variable was the index proposed by Eckel, an empirical proxy for smoothing. The results indicate that the more concentrated the shareholding and control structures of Brazilian firms are, both according to overall capital and voting capital, the more intensely they tend to smooth earnings to favor the interests of the majority shareholder. The results also show that this effect is less pronounced for firms with enhanced corporate governance levels and those with foreign capital.
publishDate 2010
dc.date.issued.fl_str_mv 2010
dc.date.accessioned.fl_str_mv 2018-02-06T19:11:51Z
dc.date.available.fl_str_mv 2018-02-06T19:11:51Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
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dc.identifier.uri.fl_str_mv http://repositorio.ufba.br/ri/handle/ri/25307
dc.identifier.number.pt_BR.fl_str_mv v. 8, p. 180-192
url http://repositorio.ufba.br/ri/handle/ri/25307
identifier_str_mv v. 8, p. 180-192
dc.language.iso.fl_str_mv eng
language eng
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.publisher.none.fl_str_mv Corporate Ownership & Control
publisher.none.fl_str_mv Corporate Ownership & Control
dc.source.pt_BR.fl_str_mv http://dx.doi.org/10.2139/ssrn.1651991
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