Name: RENAN BITTENCOURT GUERRA
Publication date: 13/12/2019
Advisor:
Name |
Role |
|---|---|
| VAGNER ANTONIO MARQUES | Advisor * |
Examining board:
| Name |
Role |
|---|---|
| PATRÍCIA MARIA BORTOLON | Internal Examiner * |
| VAGNER ANTONIO MARQUES | Advisor * |
Summary: Accounting information is used in capital as users' economic decision-making tools. However, manipulations of financial data in accounting information and the opportunistic behavior of individuals result in financial fraud that impairs the entire functioning of the market (JENSEN; MECKLING, 1994; KING; WAYMIRE, 1994). Thus, these events reinforce the importance of regulation and enforcement, represented by the Brazilian Securities Commission in the brazilian scenario, since a normative structure, when accompanied by monitoring attributes of companies, aims at reducing informational asymmetry, besides being guided by the protection of shareholders (KURLAT; VELDKAMP, 2015). Since one of CVM's roles is based on verifying that the financial statements disclosed to the market are reliable, one of the autarchy's prerogatives is to require the restatement of the financial reports of certain companies to rectify the disclosed information. This is emphasized because, according to Marques (2016), these restatements can be seen as na indicative that some impropriety (or error) occurred, reducing the informational quality of financial reports. Given this context, this dissertation was guided by the content analysis of the Sanctioning Administrative Proceedings judged by the CVM from 2008 to 2018, as well as analyzing, during the same period, the reasons for the financial restatements of 575 companies listed on [B³]. Subsequently, both occurrences were analyzed (the judments of companies by the CVM and the occurrence of financial restatements) with institutional characteristics of the market (presence of Big Four, corporate governance and sector). Finally, it was verified about the possible association between having its financial restatement and the incidence of investigations and sanctions by the CVM. As an analysis strategy, we used the content analysis to categorize the republication motives and the punishment motives, KruskalWallis test for difference between average, Pearson's Chi-square test, and finally, an cluster analysis in order to verify the possible similarities and dissimilarities between the performance indexes of the companies that were sanctioned by the regulatory authority. The results indicate that the most frequent reason sanction is for Fraudulent Practices, represented mainly by the imperfect and negligent conduct by the managers. The most sanctioned sectors most by the CVM were: Financial, Cyclical Consumption and Industrial Goods. Regarding the presence of Big Four auditors and the level of corporate governance, the presence of nonBig Four was higher among the judged companies, while the Traditional level companies are more penalized by CVM. The results of the companies' restatements showed that more than half was related to the measurement and modification of accounting data, rectification of the management report and improvement of the explanatory notes. Regarding institutional characteristics, it was found that the Financial, Cyclical Consumption and Public Utility are the sectors that most restated its financial report, so that the levels of Traditional and New Market governance presented greater republications. In addition, it was found that companies audited by Big Four restate more. Regarding the interaction between the restatements and beeing judged by the CVM, there was no statistically significant association leading to the conclusion of association between the related facts. However, a greater association was perceived when republication is required by the CVM, indicating that the regulatory body may prioritize investigations when the financial statement was required to be restated.
