ANALYSIS OF THE PROFIT PERSISTENCE UNDER THE DISCRETIONARY ACCRUALS: A STUDY BASED ON THE IMPACT OF ADOPTING IFRS

• Autor(a) principal: Marçal, Ronan Reis
• Data de Publicação: 2019
• Outros Autores: Macedo, Marcelo Alvaro da Silva
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Contextus (Fortaleza. Online)
• Texto Completo: http://periodicos.ufc.br/contextus/article/view/40706

The difference between cash flow and net profit is called accrual. This measure is divided into a discretionary portion, a proxy for earnings management, and another non-discretionary, natural of the operational activities. The implementation of international accounting standards (IFRS) changed the potential volume of the discretionary portion. From it is expected a loss in the profits persistence given its arbitrary character. Therefore, this study analyzed the impact of discretionary accruals on the profits persistence of B3 companies, considering the adoption of IFRS. Given an estimation with panel data of 100 different companies, there are indications contrary to the logic of deterioration of persistence by discretionary accruals. The explanation lies in non-opportunistic earnings management, which assists investors in decision-making. In addition, the adoption of IFRS does not imply a reflection on the relation between discretionary accumulations and the profits persistence, differently from that expected in previous studies.