Financial Slack and Market Performance: an Analysis of Brazilian and Italian Companies

• Autor(a) principal: Padilha, Daniel Fernando
• Data de Publicação: 2017
• Outros Autores: da Silva, Alini, da Silva, Tarcísio Pedro, Gonçalves, Michele
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Contabilidade, Gestão e Governança
• Texto Completo: https://revistacgg.org/index.php/contabil/article/view/1161
• topic: Financial slack; Market performance; Brazilian companies; Italian companies; Folga financeira. Desempenho de mercado. Empresas brasileiras. Empresas italianas.

The aim of the study was to verify the effect of financial freedom on the market performance of companies in Brazil and Italy, by using a descriptive methodology given the aim to document procedures as well as to address the problem from a quantitative approach. The sample comprised 47 Brazilian companies and 29 Italian companies, which presented all the necessary information to carry out the study. The period of analysis corresponded to the years 2010 to 2013. As statistical techniques, we used a  descriptive analysis and panel data applied in 5 regression equations. It was observed that the financial slack has a greater impact on the market performance of Italian companies, than on Brazilian companies. It was noted that the positive effect of the financial slack in Brazil’s business scenario contributed to the increase of the market-to-book, but on the Italian scenario the opposite effect was observed. Thus, it was deduced that the effect of financial freedom on market performance depends on the environment in which firms are inserted.