Contingent Liabilities and Prospect Theory: Analysis of the Financial Indexes of Civil Construction and Heavy-Duty Construction Companies Other Languages

ID:
52545
Abstract:
OBJECTIVE: The purpose of this paper was to analyze the effect of Contingent Liabilities in the economic and financial indexes of companies in the Civil Construction and Heavy-Duty Construction segments listed on B3. BACKGROUND: The Prospects Theory assumes that information on possible losses (contingent liabilities) in construction companies and heavy-duty construction are relevant in decision making, as they indicate exposure to the risk of future losses. METHOD: Documentary analysis of the Consolidated and Standardized Financial Statements for 2016 of 21 public companies in the construction and heavy construction segment and use of the Wilcoxon’s test and McNemar’s test to compare the economic and financial indicators before and after the simulation provisions for contingent liabilities. RESULTS: Contingent Liabilities disclosed in 2016 may cause significant effects on economic and financial indicators, especially in profitability indicators; do not significantly influence the number of companies with Negative Shareholders' Equity; but they caused a significant increase in the number of companies with Accounting Loss in the period, corroborating the observation that the balance of Net Income for 2016 is sensitive to the recognition of Contingent Liabilities, indicating exposure to the risk of losses. CONTRIBUTIONS: It contributes to the literature on the disclosure of contingent liabilities and the usefulness of accounting information to external users in the field of Behavioral Finance. It also contributes to the study and use of financial indicators in decision making based on information that may have predictive utility.
ABNT Citation:
SILVA, T. A.; SANCHES, S. L. R.; IGARASHI, D. C. C. Contingências Passivas e Teoria dos Prospectos: Análise dos Efeitos em Indicadores Financeiros de Empresas de Construção Civil e Construção Pesada . Revista Evidenciação Contábil & Finanças, v. 7, n. 1, p. 39-57, 2019.
APA Citation:
Silva, T. A., Sanches, S. L. R., & Igarashi, D. C. C. (2019). Contingências Passivas e Teoria dos Prospectos: Análise dos Efeitos em Indicadores Financeiros de Empresas de Construção Civil e Construção Pesada . Revista Evidenciação Contábil & Finanças, 7(1), 39-57.
DOI:
10.22478/ufpb.2318-1001.0v0n0.35534
Permalink:
http://www.spell.org.br/documentos/ver/52545/contingent-liabilities-and-prospect-theory--analysis-of-the-financial-indexes-of-civil-construction-and-heavy-duty-construction-companies/i/en
Document type:
Artigo
Language:
Português