Machiavellianism in the Creation of Budgetary Slack

ID: 63772

Authors: Amanda Beatriz Nasatto Corrêa, Carlos Eduardo Facin Lavarda.

Source: Contabilidade, Gestão e Governança, v. 24, n. 2, p. 1-19, May-August, 2021. 19 page(s).

Keyword: Budgetary Slack , Intensity of Negative Affect , Machiavellianism , Punishment

Document type: Article (Portuguese) Show Abstract

Objective: to examine the tendency of the individual with Machiavellian behavior to create budgetary slack in a situation of negative affect. Method: experimental research with 390 undergraduate students of accounting from Brazilian higher education institutions, and for data analysis, the structural equation modeling technique was chosen using the SmartPLS software, version 3. Originality/Relevance: the relevance of the study is to measure the moderation effect of the intensity of negative affect imposed by punishment on the relationship between Machiavellianism and budgetary slack. New studies on Machiavellianism provide evidence with a focus on negative affect, more specifically on the punishment for incorrect information, as well as exploring the antecedents of budgetary slack, which can modify the behavior of managers in organizations. Results: the findings indicate that the Machiavellian personality can be considered an antecedent of budgetary slack, in addition to being something intrinsic in the individual, who even in the face of the intensity of negative affect imposed by the threat of punishment as an environmental stimulus, managed to inhibit the creation of budgetary slack. Theoretical/Methodological contributions: our findings add to the literature in this area, as it demonstrates that Machiavellian personality can be considered as an antecedent of budgetary slack and uses the Machiavellian Personality Scale (MPS), in order to validate a scale on the national scene, in addition to increasing the discussion on the intensity of negative affect, and its moderation effect.

Escrever um Artigo Acadêmico, é Expressar uma Ideia Publicável

ID: 63771

Authors: Rodrigo de Souza Gonçalves, Andréa de Oliveira Gonçalves.

Source: Contabilidade, Gestão e Governança, v. 24, n. 2, p. 1-3, May-August, 2021. 3 page(s).

Document type: Editorial (Portuguese)

Value Relevance of Intangible Assets Recognized in a Business Combination

ID: 63773

Authors: Amanda Beatriz Nasatto Corrêa, Carlos Eduardo Facin Lavarda.

Source: Contabilidade, Gestão e Governança, v. 24, n. 2, p. 167-184, May-August, 2021. 18 page(s).

Keyword: Business combination , Intangible assets , Value relevance

Document type: Article (English) Show Abstract

Objective: To verify the value relevance of intangible assets recognized in a business combination of Brazilian publicly traded companies. Method: The sample of 165 companies, covering 962 observations, from 2010 to 2017, was analyzed using five panel data regressions based on Ohlson’s model (1995; 2005) to test four research hypotheses. Originality/Relevance: Value relevance studies have analyzed goodwill, but there are gaps this study seeks to fill. The study addresses the value relevance of intangibles assets recognized in a business combination for the stock market, exploring goodwill and other types of intangibles recognized in a business combination. Also, IFRS 3 was discussed in 2015, bringing the stock market’s perspective and the standard application to the center of accounting research. Results: The results showed that goodwill represents 23% to 30% of intangible assets recorded in the balance sheet, while other intangibles identified represent around 5.6%. As for value relevance, it was observed that both the recognized value of the intangible assets and, when segregated in goodwill and in identified intangible assets, were significant and positively related to the market value. Concerning the nature of intangibles recognized in business combinations, some of them were related to market value. Theoretical/Methodological contributions: The research contributes to value relevance literature on business combinations, allowing us to understand that they are relevant to the stock market and contribute to Brazilian companies’ market value.

Entrepreneurial Action in the Public Sector: the "Post-purchase" Sector of a Public University of Minas Gerais

ID: 63775

Authors: Gilson David Lacerda, Daniela Meirelles Andrade.

Source: Contabilidade, Gestão e Governança, v. 24, n. 2, p. 185-203, May-August, 2021. 19 page(s).

Keyword: Entrepreneurial action , Entrepreneurial action in the public sector , Public entrepreneurship , Public purchases

Document type: Article (English) Show Abstract

Objective: investigating whether the creation of the “Post purchase” sector in a public University, in the south of Minas Gerais, can be understood as an entrepreneurial action. Method: qualitative and descriptive approach, supported by an observational study case. The data was obtained through participant observation, semi structured review and documentary research, and analyzed through the thematic analysis method, according to the proposed theoretical scheme. Originality/Relevance: displacing the focus of studies from highlighting the entrepreneurial individual to the entrepreneurial action itself, and exploring the “Post-purchase” theme in public organizations. This study is a way of providing the society with knowledge of the different innovative actions promoted by University which is being researched, as well as inspiring other public organizations to develop similar actions. Results: the creation of the sector enabled social results within the researched University, which manifested through the generation of qualitative benefits (changes in the perception had by providers, support to members of the university community, and positive impact in fulfilling material needs) and quantitative benefits (reduction of values included under Accrued Liabilities, improvement in budget execution and resource management, and improvement in the institution’s accounting ratios). Considering the characteristics being presented, it is concluded that this sector creation can be seen as an entrepreneurial action. Theoretical/Methodological contributions: beyond the contribution to the public entrepreneurship research field, this study proposes a theoretical scheme which can be applied to new empirical researches aiming to comprehend the occurrence of the entrepreneurial action in the public sector.

The Influence of Self-Deception in the Practice of Tax Evasion in Brazil

ID: 63776

Authors: Ivone Vieira Pereira, César Augusto Tibúrcio Silva.

Source: Contabilidade, Gestão e Governança, v. 24, n. 2, p. 204-221, May-August, 2021. 18 page(s).

Keyword: Categorization flexibility , Logistic regression , Self-deception , Tax evasion

Document type: Article (English) Show Abstract

Objective: The studies in the literature show that economic and behavioral factors have an influence on the practice of tax evasion. From this perspective, this research aimed to identify whether self deception influences the practice of tax evasion in Brazil. Method: Data was collected through a quasi-experiment, followed by the administration of a questionnaire, between November 2016 and September 2017. 800 data collection instruments were applied in loco in all the country’s geographical regions, 598 of which were validated. Measures were adopted to ensure the validity of content, criteria, and constructs. Results: The reliability testing resulted in a Cronbach’s Alpha of 0.63, and the Composite Reliability was greater than 0.60. Data were analyzed through binary logistic regression. Following the multivariate approach, the results of this research suggest that self deception influences the individual’s chances of tax evasion. Originality/Relevance: This study differs from the others in that it considers tax evasion based on the influence of the taxpayer’s human behavior. Theoretical/methodological contributions: Based on an interdisciplinary approach, this study contributes to the public administration in its determination of actions that may discourage tax evasion through the implementation of strategic policies that include the taxpayer’s behavioral factor.

The Challenge of Determining the WACC of Electricity Transmission Service Operators: The Brazilian Case

ID: 63774

Authors: João José Ferreira Simões, Heinz Ahn, Antônio Artur de Souza.

Source: Contabilidade, Gestão e Governança, v. 24, n. 2, p. 222-238, May-August, 2021. 17 page(s).

Keyword: CAPM , Electricity Transmission Operator , Rate of Return , Regulation , WACC

Document type: Article (English) Show Abstract

Objective: ANEEL, the Brazilian National Electric Energy Agency, regularly renews its tariff model to remunerate the electricity transmission service operators. This study focuses on the conceded rate of return of the operators’ regulatory capital. We aim to contribute to the methodological improvement of the regulator’s approach in future tariff reviews by focusing on issues concerning the calculation of this key figure. Method: We critically review ANEEL’s concept of the regulatory rate of return, stressing issues concerning the calculation of this key figure. Originality/Relevance: We are not aware of any research that analyzes ANEEL’s actual model for calculating the regulatory rate of return. In line with ANEEL’s search for support, we intend that our considerations will help improve the regulator’s approach and serve as stimuli to search for answers to open questions. Results: We revealed five aspects that give rise to deeper reflections. Our findings suggest that the concept for determining the regulatory rate of return could be adapted to better reflect the Brazilian financial market conditions. Theoretical/Methodological contributions: As a main finding, the sample of US electric energy companies involved in calculating the so-called ß factor should be reconsidered. Furthermore, to compute the weights of these companies to calculate the sample’s unleveraged ß, companies with missing data should be excluded. Moreover, instead of gathering the data for the WACC calculation from quite different periods, these periods should be aligned on a theoretical basis.

Political Electoral Cycles: Are Municipal Elections Influenced on the Budget Execution of Minas Gerais Municipalities?

ID: 63780

Authors: Pedro Henrique Pereira dos Santos, Vasconcelos Reis Wakim, Cínthia Izabela Pina Fernandes.

Source: Contabilidade, Gestão e Governança, v. 24, n. 2, p. 239-255, May-August, 2021. 17 page(s).

Keyword: Budgetary-electoral cycles , Municipal Elections , Public budget , Tax policy

Document type: Article (English) Show Abstract

Objective: This article intends to assess whether political cycles generate impacts on the allocation of public resources ineducation, health, and infrastructure investments (works and installations) in municipalities in the State of Minas Gerais. Method: In this context, the sample consisted of 500 municipalities from 2007 to 2016, excluding cities that did not present all the data in the period studied. The Seemingly Unrelated Regression (SUR) panel model proposed by Zellner and Theil (1962) was used to elaborate a system of equations responsible for identifying the existence of electoral cycles in the expenses above, totaling three equations. Originality/relevance: Because of the locus of the study, it is admitted that the results can contribute to the understanding of the municipal budget dynamics, considering the influence of other variables, such as the binary, that refer to mesoregions and their characteristics. Results: Corroborating the literature on political-budgetary cycles, the results of this research point to the existence of influence of the electoral process in the application of public resources, with increased spending in electoral years and retraction in post-electoral years in municipalities, a fact that is well evidenced in expenses with works and installations, the most visible to the population. Theoretical/methodological contributions: In this way, the article contributes to a better understanding of the determinants of the use of public resources in municipalities in Minas Gerais.