Deferred tax assets, earnings quality and their effects on bank results: Evidence from Brazil
Autor(a) principal: | |
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Data de Publicação: | 2024 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng por |
Título da fonte: | Contextus (Fortaleza. Online) |
DOI: | 10.19094/contextus.2024.91530 |
Texto Completo: | http://periodicos.ufc.br/contextus/article/view/91530 |
Resumo: | Background: Deferred Tax Assets (AFD) can pollute the quality of earnings by their use, as the reported earnings will be inflated by these assets, resulting from discretionary financial operations. Purpose: This study aimed to identify the effects of AFD on the perspective of earnings quality of banks, using the proxy’s earnings persistence, earnings smoothing and Earning Response Coefficient (ERC). Method: The empirical tests were based on information from the financial reports of the banks, Brazilian Central Bank (BACEN), Bloomberg and Economatica® from 2017 to 2021, being estimated using panel data. Results: The results suggest that the larger the AFD, the greater the earnings persistence and unexpected earnings by the ERC, and the lower the earnings smoothing. Conclusions: The profit quality perspective shown in the results highlights the validation of the proposed models, contributing not only to the AFD theme and the quality of profits, but also the association of the discretionary use of these assets as generators of polluting results for banks, being verified, in this study, the medium ones showed significance in the use of AFD for the persistence of profits, and the small ones for the persistence and smoothing of profits, benefiting from the movements of loans granted and AFD stocks, making them more persistent and smoothed over the sample period. |
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Deferred tax assets, earnings quality and their effects on bank results: Evidence from Brazil Activos por impuestos diferidos, calidad de las ganancias y sus efectos en los resultados bancários: Evidencia de Brasil Ativos fiscais diferidos, qualidade de lucros e seus efeitos nos resultados dos bancos: Evidências no Brasil banks; Deferred Tax Assets; earnings quality; taxes.bancos; Ativos Fiscais Diferidos; qualidade de lucros; tributosbancos; Activos por Impuestos Diferidos; calidad de las ganancias; impuestos.Background: Deferred Tax Assets (AFD) can pollute the quality of earnings by their use, as the reported earnings will be inflated by these assets, resulting from discretionary financial operations. Purpose: This study aimed to identify the effects of AFD on the perspective of earnings quality of banks, using the proxy’s earnings persistence, earnings smoothing and Earning Response Coefficient (ERC). Method: The empirical tests were based on information from the financial reports of the banks, Brazilian Central Bank (BACEN), Bloomberg and Economatica® from 2017 to 2021, being estimated using panel data. Results: The results suggest that the larger the AFD, the greater the earnings persistence and unexpected earnings by the ERC, and the lower the earnings smoothing. Conclusions: The profit quality perspective shown in the results highlights the validation of the proposed models, contributing not only to the AFD theme and the quality of profits, but also the association of the discretionary use of these assets as generators of polluting results for banks, being verified, in this study, the medium ones showed significance in the use of AFD for the persistence of profits, and the small ones for the persistence and smoothing of profits, benefiting from the movements of loans granted and AFD stocks, making them more persistent and smoothed over the sample period. Contextualización: Los Activos por Impuestos Diferidos (AFD) pueden contaminar la calidad de las ganancias por su uso, ya que las ganancias reportadas serán infladas por estos activos, resultantes de operaciones financieras discrecionales. Objetivo: Este estudio tuvo como objetivo identificar los efectos de AFD en la perspectiva de la calidad de las ganancias de los bancos, utilizando los proxies de persistencia de ganancias, suavización de ganancias y Coeficiente de Respuesta de Ganancias (ERC). Método: Las pruebas empíricas se basaron en información de los informes financieros de los bancos, Banco Central de Brasil (BACEN), Bloomberg y Economatica® de 2017 a 2021, estimados con datos de panel. Resultados: Los resultados sugieren que cuanto mayor sea la AFD, mayor será la persistencia de las ganancias y las ganancias inesperadas por parte de la ERC, y menor la suavización de las ganancias. Conclusiones: La perspectiva de la calidad de las ganancias mostrada en los resultados destaca la validación de los modelos propuestos, contribuyendo no sólo al tema de la AFD y a la calidad de las ganancias, sino también a la asociación del uso discrecional de estos activos como generadores de resultados contaminantes para los bancos, siendo verificada, en este estudio, las medianas mostraron importancia en el uso de la AFD para la persistencia de las ganancias, y las pequeñas para la persistencia y suavización de las ganancias, beneficiándose de los movimientos de los préstamos concedidos y de los stocks de la AFD, haciéndolos más persistentes y suavizados. durante el período de la muestra. Contextualização: Os Ativos Fiscais Diferidos (AFD) podem tornar a qualidade de lucros poluída pelo seu uso, pois, os lucros apresentados estarão inflados por esses ativos, resultantes de operações financeiras discricionárias. Objetivo: Esse estudo teve por objetivo identificar os efeitos dos AFD na perspectiva de qualidade de lucros dos bancos, sendo utilizadas as proxies persistência de lucros, alisamento de lucros e Earning Response Coefficient (ERC). Método: Os testes empíricos tiveram por base as informações dos relatórios financeiros dos bancos, Banco Central do Brasil (BACEN), Bloomberg e Economatica® de 2017 a 2021, sendo estimados por dados em painel. Resultados: Os resultados sugerem que, quanto maiores os AFD, maiores serão a persistência de lucros e os lucros inesperados pelo ERC e, menor será o alisamento de lucros. Conclusões: A perspectiva de qualidade de lucros exibida nos resultados evidencia a validação dos modelos propostos, contribuindo não somente para o tema AFD e a qualidade de lucros, mas, também, a associação do uso discricionário desses ativos como geradores de resultados poluidores dos bancos, sendo constatados, nesse estudo que, os médios apresentaram significância no uso dos AFD para a persistência de lucros, e os pequenos para a persistência e o alisamento de lucros, sendo beneficiados quanto às movimentações de empréstimos concedidos e de estoques de AFD, tornando-os mais persistentes e alisados ao longo do período amostral. FEAAC/UFC2024-02-20info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfapplication/pdfapplication/ziphttp://periodicos.ufc.br/contextus/article/view/9153010.19094/contextus.2024.91530Contextus - Contemporary Journal of Economics and Management; Vol. 22: jan/dez 2024; e91530Contextus – Revista Contemporánea de Economía y Gestión; Vol. 22: jan/dez 2024; e91530Contextus – Revista Contemporânea de Economia e Gestão; v. 22: jan/dez 2024; e915302178-92581678-2089reponame:Contextus (Fortaleza. Online)instname:Universidade Federal do Ceará (UFC)instacron:UFCengporhttp://periodicos.ufc.br/contextus/article/view/91530/250132http://periodicos.ufc.br/contextus/article/view/91530/250133http://periodicos.ufc.br/contextus/article/view/91530/250182http://periodicos.ufc.br/contextus/article/view/91530/250183http://periodicos.ufc.br/contextus/article/view/91530/250184http://periodicos.ufc.br/contextus/article/view/91530/250185Copyright (c) 2024 Revista: apenas para a 1a. publicaçãohttp://creativecommons.org/licenses/by-nc/4.0info:eu-repo/semantics/openAccess Almeida, Rodrigo Ferraz deMonte-mor, Danilo Soares2024-03-12T14:22:34Zoai:periodicos.ufc:article/91530Revistahttp://periodicos.ufc.br/contextusPUBhttp://periodicos.ufc.br/contextus/oairevistacontextus@ufc.br2178-92581678-2089opendoar:2024-03-12T14:22:34Contextus (Fortaleza. Online) - Universidade Federal do Ceará (UFC)false |
dc.title.none.fl_str_mv |
Deferred tax assets, earnings quality and their effects on bank results: Evidence from Brazil Activos por impuestos diferidos, calidad de las ganancias y sus efectos en los resultados bancários: Evidencia de Brasil Ativos fiscais diferidos, qualidade de lucros e seus efeitos nos resultados dos bancos: Evidências no Brasil |
title |
Deferred tax assets, earnings quality and their effects on bank results: Evidence from Brazil |
spellingShingle |
Deferred tax assets, earnings quality and their effects on bank results: Evidence from Brazil Deferred tax assets, earnings quality and their effects on bank results: Evidence from Brazil Almeida, Rodrigo Ferraz de banks; Deferred Tax Assets; earnings quality; taxes. bancos; Ativos Fiscais Diferidos; qualidade de lucros; tributos bancos; Activos por Impuestos Diferidos; calidad de las ganancias; impuestos. Almeida, Rodrigo Ferraz de banks; Deferred Tax Assets; earnings quality; taxes. bancos; Ativos Fiscais Diferidos; qualidade de lucros; tributos bancos; Activos por Impuestos Diferidos; calidad de las ganancias; impuestos. |
title_short |
Deferred tax assets, earnings quality and their effects on bank results: Evidence from Brazil |
title_full |
Deferred tax assets, earnings quality and their effects on bank results: Evidence from Brazil |
title_fullStr |
Deferred tax assets, earnings quality and their effects on bank results: Evidence from Brazil Deferred tax assets, earnings quality and their effects on bank results: Evidence from Brazil |
title_full_unstemmed |
Deferred tax assets, earnings quality and their effects on bank results: Evidence from Brazil Deferred tax assets, earnings quality and their effects on bank results: Evidence from Brazil |
title_sort |
Deferred tax assets, earnings quality and their effects on bank results: Evidence from Brazil |
author |
Almeida, Rodrigo Ferraz de |
author_facet |
Almeida, Rodrigo Ferraz de Almeida, Rodrigo Ferraz de Monte-mor, Danilo Soares Monte-mor, Danilo Soares |
author_role |
author |
author2 |
Monte-mor, Danilo Soares |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Almeida, Rodrigo Ferraz de Monte-mor, Danilo Soares |
dc.subject.por.fl_str_mv |
banks; Deferred Tax Assets; earnings quality; taxes. bancos; Ativos Fiscais Diferidos; qualidade de lucros; tributos bancos; Activos por Impuestos Diferidos; calidad de las ganancias; impuestos. |
topic |
banks; Deferred Tax Assets; earnings quality; taxes. bancos; Ativos Fiscais Diferidos; qualidade de lucros; tributos bancos; Activos por Impuestos Diferidos; calidad de las ganancias; impuestos. |
description |
Background: Deferred Tax Assets (AFD) can pollute the quality of earnings by their use, as the reported earnings will be inflated by these assets, resulting from discretionary financial operations. Purpose: This study aimed to identify the effects of AFD on the perspective of earnings quality of banks, using the proxy’s earnings persistence, earnings smoothing and Earning Response Coefficient (ERC). Method: The empirical tests were based on information from the financial reports of the banks, Brazilian Central Bank (BACEN), Bloomberg and Economatica® from 2017 to 2021, being estimated using panel data. Results: The results suggest that the larger the AFD, the greater the earnings persistence and unexpected earnings by the ERC, and the lower the earnings smoothing. Conclusions: The profit quality perspective shown in the results highlights the validation of the proposed models, contributing not only to the AFD theme and the quality of profits, but also the association of the discretionary use of these assets as generators of polluting results for banks, being verified, in this study, the medium ones showed significance in the use of AFD for the persistence of profits, and the small ones for the persistence and smoothing of profits, benefiting from the movements of loans granted and AFD stocks, making them more persistent and smoothed over the sample period. |
publishDate |
2024 |
dc.date.none.fl_str_mv |
2024-02-20 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://periodicos.ufc.br/contextus/article/view/91530 10.19094/contextus.2024.91530 |
url |
http://periodicos.ufc.br/contextus/article/view/91530 |
identifier_str_mv |
10.19094/contextus.2024.91530 |
dc.language.iso.fl_str_mv |
eng por |
language |
eng por |
dc.relation.none.fl_str_mv |
http://periodicos.ufc.br/contextus/article/view/91530/250132 http://periodicos.ufc.br/contextus/article/view/91530/250133 http://periodicos.ufc.br/contextus/article/view/91530/250182 http://periodicos.ufc.br/contextus/article/view/91530/250183 http://periodicos.ufc.br/contextus/article/view/91530/250184 http://periodicos.ufc.br/contextus/article/view/91530/250185 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2024 Revista: apenas para a 1a. publicação http://creativecommons.org/licenses/by-nc/4.0 info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2024 Revista: apenas para a 1a. publicação http://creativecommons.org/licenses/by-nc/4.0 |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/pdf application/zip |
dc.publisher.none.fl_str_mv |
FEAAC/UFC |
publisher.none.fl_str_mv |
FEAAC/UFC |
dc.source.none.fl_str_mv |
Contextus - Contemporary Journal of Economics and Management; Vol. 22: jan/dez 2024; e91530 Contextus – Revista Contemporánea de Economía y Gestión; Vol. 22: jan/dez 2024; e91530 Contextus – Revista Contemporânea de Economia e Gestão; v. 22: jan/dez 2024; e91530 2178-9258 1678-2089 reponame:Contextus (Fortaleza. Online) instname:Universidade Federal do Ceará (UFC) instacron:UFC |
instname_str |
Universidade Federal do Ceará (UFC) |
instacron_str |
UFC |
institution |
UFC |
reponame_str |
Contextus (Fortaleza. Online) |
collection |
Contextus (Fortaleza. Online) |
repository.name.fl_str_mv |
Contextus (Fortaleza. Online) - Universidade Federal do Ceará (UFC) |
repository.mail.fl_str_mv |
revistacontextus@ufc.br |
_version_ |
1822180433444470784 |
dc.identifier.doi.none.fl_str_mv |
10.19094/contextus.2024.91530 |