High Portfolio Turnover and Performance of Equity Mutual Funds

ID: 39856

Authors: Pedro Luiz Albertin Bono Milan, William Eid Junior.

Source: Revista Brasileira de Finanças, v. 12, n. 4, p. 469-469, October-December, 2014. 1 page(s).

Keyword: active portfolio management , equity mutual funds , performance , portfolio turnover rate

Document type: Article (Portuguese) Show Abstract

The active portfolio management aims to outperformance a market portfolio return, however, there is a great discussion among academics and practitioners about the real possibilities to outperformance the market portfolio return by an actively portfolio management. This paper shed light on Brazilian market, pursuing the impact of a high portfolio turnover rate in the performance of equity mutual investment funds. The study evidence high turnover rates negatively affecting the performance of the funds. Furthermore, the performance fee and the size effect are important aspects to acces better performance.

Private Equity and Venture Capital in Brazil: An Analysis of its Evolution

ID: 39857

Authors: Antonio Gledson De Carvalho, Humberto Gallucci Netto, Joelson Oliveira Sampaio.

Source: Revista Brasileira de Finanças, v. 12, n. 4, p. 499-499, October-December, 2014. 1 page(s).

Keyword: Brazil , private equity , venture capital

Document type: Article (English) Show Abstract

This article focuses on the main idiosyncrasiesof Private Equity and Venture Capital (PEVC) in Brazil and its evolution from 2004 to 2009. The main idiosyncrasies are the participation of limited partnersin the investmentprocess, absence of leveraged buyouts, shared control of the portfolio companies and use of special rights to compensate for the lack of full control. The main changes observed recently are the increase of private equity investments vis-a`-vis venture capital, in the efficiency of managers in the screening of proposals, in the use of special rights to compensate for the lack of control of the portfolio companies, in the use of arbitration panels for conflict resolution, and in the participation of limited partners in the investment process.

Testing the Adaptive Markets Hypothesis for Brazil

ID: 39858

Authors: Glener de Almeida Dourado, Benjamin Miranda Tabak.

Source: Revista Brasileira de Finanças, v. 12, n. 4, p. 517-517, October-December, 2014. 1 page(s).

Keyword: adaptive markets hypothesis , efficient market hypothesis , Ibovespa , predictability , volatility

Document type: Article (Portuguese) Show Abstract

The goal of this paper is to evaluate Brazilian stock market efficiency using daily data for the Sa˜o Paulo Stock Exchange Index from January 1995 to December 2012. We employ a variance ratio statistic with wild bootstrap, developed to test linear dependency, to test for the Random Walk Hypothesis. We also use the generalized spectral test for the nonlinear case. We employ moving subsamples with fixed size, checking the existence of random walk behavior. We test whether market efficiency depends on market conditions(Adaptative Markets Hypothesis - AMH). We cannot reject both the RWH and AMH.

Pyramidal Ownership Structure, Dual Class Shares and Firms’ Financial Performance in Brazilian Market

ID: 39859

Authors: Lélis Pedro de Andrade, Aureliano Angel Bressan, Robert Aldo Iquiapaza.

Source: Revista Brasileira de Finanças, v. 12, n. 4, p. 555-595, October-December, 2014. 41 page(s).

Keyword: dual class shares , pyramidal ownership structure , firm’s financial performance

Document type: Article (Portuguese) Show Abstract

This study aims to identify whether there is a relationship between dual class shares issuance, pyramidal ownership structure and firms’ financial performance in the Brazilian market. To this end, univariate tests and panel data analysis were applied in a sample for the 2000 to 2012 period. The results indicate that there is a significant and negative relationship between dual class shares issuance and firm’s financial performance, regardless of whether there is a pyramidal ownership structure in the firm. On other hand, we find positive effects from the pyramidal structure on the firm’s financial performance, conditioned that there is no dual class shares issuance, and also on the absence of an excessive number of levels until the ultimate indirect controlling shareholder. This evidence suggest that both the voting power and the pyramidal ownership structure with smaller number of layers matter to improve the firms’ financial performance in the Brazilian market.

Opening or Not Capital in Brazil: An Practice Analysis of Perception of Financial Executives

ID: 39860

Authors: Helen Cristina Steffen, Francisco Antônio Mesquita Zanini.

Source: Revista Brasileira de Finanças, v. 12, n. 4, p. 597-642, October-December, 2014. 46 page(s).

Keyword: chief financial officers (CFO) , concerns , Initial Public Offerings (IPO) , motivations , perceptions

Document type: Article (Portuguese) Show Abstract

This study investigatedthe aspects and reasonswhyBrazilian firmsgo public, from the viewpoint of chief financial officers (CFOs). From the BM&F Bovespa and the magazine Valor Investe, we selected 113 Brazilian firms that had successfully completed an Initial Public Offerings (IPO) between January 2004 and December 2010, and firms those that are large enough to go public, but have not attempted an IPO. Following Brau & Fawcett (2006), we surveyed the CFOs about their perceptionsat the time of the IPO. The most findingswere: (1) the main motivation for going public was to reduce the cost of capital; (2) general market conditions were crucial to the timing of the IPO; (3) underwriters were selected based on overall reputation, quality of the research department, and industry expertise; (4) the use of a Big-4 accounting firm was seen as a positive sign by the respondents; (5) the overallotment option of shares to stabilize prices was considered the most important IPO process issue; and (6) the main reason for remaining private was to preserve decision-making control and ownership.

List of Reviewers

ID: 39861

Authors: Revista Brasileira de Finanças - RBFin.

Source: Revista Brasileira de Finanças, v. 12, n. 4, p. 643-643, October-December, 2014. 1 page(s).

Document type: Other (English)