Name: ARTHUR DA SILVA SOUZA
Publication date: 30/07/2018
Advisor:
Name |
Role |
|---|---|
| JOSE ELIAS FERES DE ALMEIDA | Advisor * |
Examining board:
| Name |
Role |
|---|---|
| JOSE ELIAS FERES DE ALMEIDA | Advisor * |
| VAGNER ANTONIO MARQUES | Internal Examiner * |
Summary: The objective of this dissertation is to examine the relationship between earnings
management through accruals and real activities with overinvestment of companies. The
earnings management practices are analyzed through the regression residuals (erros) for
each results management model, which represent the abnormal level of the activities
and is a proxy for management identification. The level of investments considered ideal
is that which occurs due to the investment opportunities of the company and the
deviation in the level of investment is the overinvestment or underinvestiment to the
level that would be ideal. To identify investment levels, a model based on economic
literature will be used as proposed by McNichols and Stubben (2008). To achieve this
objective the investments in assets will be analyzed for a sample of 1,240 non-financial
companies listed on the BMF&FBOVESPA during the period from 2011 to 2017,
collected from the Thomson Reuters Eikon system. For the operationalization of the
research, it was chosen to use the method of Fama and Macbeth (1973) for panel data.
The results showed that overinvestment is positively and significantly associated to the
earnings management through accruals and discretionary revenues, indicating that
companies use both management practices to report a better result. In contrast, in
reference of management by real activities, was found evidences that companies use
less this modality that, when used, is not necessarily to report better results in the
period. Finally, the evidence suggests that management practices, generally used to
achieve objectives external to the company, may also be associated with investment
decisions.
