Deferred tax assets, earnings quality and their effects on bank results: Evidence from Brazil

Detalhes bibliográficos
Autor(a) principal: Almeida, Rodrigo Ferraz de
Data de Publicação: 2024
Outros Autores: Monte-mor, Danilo Soares
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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spelling 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
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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
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dc.identifier.doi.none.fl_str_mv 10.19094/contextus.2024.91530