Effects of analysts monitoring and the cross-listing on voluntary disclosure during IFRS adoption in Brazil
Name: HERBERT SIMÕES RODRIGUES
Type: MSc dissertation
Publication date: 10/09/2014
Advisor:
Name |
Role |
|---|---|
| JOSE ELIAS FERES DE ALMEIDA | Advisor * |
Examining board:
| Name |
Role |
|---|---|
| GABRIEL MOREIRA CAMPOS | Internal Alternate * |
| JOSE ELIAS FERES DE ALMEIDA | Advisor * |
Summary: We aim in this paper to study the effects of the International Account Standards, the cover of financial analysts and the emission of American Depositary Receipts (ADR), on the voluntary disclosure of BM&FBOVESPA companies, during the period of convergence to IFRS standards. From the analyses of 14 papers, we developed a check list with 38 items of voluntary disclosure, being 25 financial, economic and organizational items and 13 environmental and social items. The developed check list was applied to 1,406 documents (foot notes and directors reports, with 58.2 thousand pages) of a sample of 703 firmyear observations, between 2006 and 2013. By using
Wilcoxon test, the results show significant augmentation in the voluntary disclosure levels during the period of IFRS adoption in Brazil, being economic, financial and organizational elements more significant than social and environmental elements. By using robust OLS models for unbalanced panel data, the results for the econometric tests partially confirmed the hypothesis that IFRS has contributed for the development of voluntary disclosure of firms with higher financial analysts coverage. Besides, we found significant evidence that firms which emitted ADRs has enhanced their levels of voluntary disclosure during the convergence period to IFRS. The results are robust
and significant when controlled by size (TAM), profitability (RENT), leverage (ALAV) and being audited by a Big Four company (AUDI) as determinants of voluntary disclosure over the period of convergence to IFRS.
