Editorial

ID: 6891

Authors: Gilberto de Andrade Martins.

Source: Revista Contabilidade & Finanças, v. 21, n. 52, p. 1-1, January-April, 2010. 1 page(s).

Document type: Editorial (Portuguese)

Goodwill: An analysis of concepts used in scientific works

ID: 6395

Authors: Eliseu Martins, Diana Lúcia de Almeida, Eric Aversari Martins, Patrícia de Souza Costa.

Source: Revista Contabilidade & Finanças, v. 21, n. 52, p. 1-25, January-April, 2010. 25 page(s).

Keyword: Goodwill , Intangible Assets , Intangibles

Document type: Article (Portuguese) Show Abstract

The accounting literature considers that goodwill represents the difference between the market value of an entity and the fair value of its identifiable net assets. The use of a divergent concep, in theoretical or empirical researches can result in distorted results, wrong conclusions, incorrect financial statements, among other theoretical and empirical problems. Thus, the objective of this study is to verify if the concept of goodwill used in researches published in the main international and Brazilian journals, as well as in the elaboration of dissertations and theses in the accounting area in Brazil, is that referred by the accounting literature as the correct. Using contents analysis, 138 national and international works containing one of the following terms in the title, abstract or keywords were analysed: goodwill, intangible, intangibles, fundo de comércio, intangível and intangíveis. The total of works analysed are divided in 60 empirical works and 78 theoretical. From the general total of works, only 47 explicitly present the goodwill´s concept, being 24 empirical and 23 theoretical. Most of the works which presents the goodwill concept did it to discuss the accounting treatment and companies´ valuation. From the total of works with the goodwill concept explicitly presented, 18 present a divergent concept from that one defined by the accounting literature. The mistakes are divided in 6 categories, being that 61% of the mistakes founded referes to the calculation of goodwill as the difference between the market value (only calculated or paid) and the book value of the net assets.

The impact of Sarbanes-Oxley on earnings quality of Brazilian ADR issuers

ID: 6394

Authors: Mark Miranda de Mendonça, Fábio Moraes da Costa, Fernando Caio Galdi, Bruno Funchal.

Source: Revista Contabilidade & Finanças, v. 21, n. 52, p. 1-24, January-April, 2010. 24 page(s).

Keyword: American Depositary Receipt ADR , conservatism , Sarbanes Oxley Act SOX

Document type: Article (Portuguese) Show Abstract

This study analyzes the impact of the Sarbanes-Oxley Act (SOX) on earnings quality of Brazilian companies qualified as ADR issuers before 2002. The accounting scandals involving firms like Enron and WorldCom reduced investors confidence in the reliability of financial statements. SOX arose to protect investors by mandating more precise and reliable financial disclosure by firms. To measure earnings quality, we used the models by Basu (1997) and Ball and Shivakumar (2005), estimated with panel data. We expected that the enhanced legal framework would imply greater earnings quality in the period after SOX. Although the results were not significant for the conservatism and cash flow models, the results for the Basu model suggest increased conservatism after SOX in Brazilian companies that had already traded ADRs before 2002. However, this increased conservatism according to the Basu model was also observed for all Brazilian companies. Therefore, the results presented here suggest this increased conservatism by Brazilian companies after 2002 cannot be directly linked to the effects of Sarbanes-Oxley.

The use of quartiles to apply Graham’s filters to Bovespa (1998-2009)

ID: 6393

Authors: Alysson Ramos Artuso, Anselmo Chaves Neto.

Source: Revista Contabilidade & Finanças, v. 21, n. 52, p. 1-20, January-April, 2010. 20 page(s).

Keyword: Graham s Filters , Portfolio Choice , Stock Market

Document type: Article (Portuguese) Show Abstract

With a view to advancing in the understanding of the Brazilian stock market and analyzing appropriate strategies for small investors, this article suggest a review on the application of Grahams filters to stock selection in Bovespa between 1998 and 2009. Using a portfolio approach and statistical tests the presence of returns above normal and higher than Ibovespa returns was noticed 's one, especially for five-year portfolios. However, these portfolios had low diversification of assets. As Graham filters were developed for the U.S. market in the 70s, the development of new qualifiers was suggested for the sake of adaptation to the current Brazilian scenario. This approach used the most interesting quartiles of each criterion to define the new qualifiers and showed a return higher than Ibovespa for all periods analyzed, but did not eliminate the problem of low portfolio diversification.

Determinants of the credit risk disclosure level by Brazilian banks

ID: 6392

Authors: José Alves Dantas, Fernanda Fernandes Rodrigues, Jomar Miranda Rodrigues, Lucio Rodrigues Capelletto.

Source: Revista Contabilidade & Finanças, v. 21, n. 52, p. 1-27, January-April, 2010. 27 page(s).

Keyword: Banks , Basel II , Credit Risk , Disclosure , Transparency

Document type: Article (Portuguese) Show Abstract

Studies assessing organizations level of disclosure have gained relevance in Accounting literature, as disclosure progressively assumes a more important role in the reduction of information asymmetry amongst various economic agents. As for the peculiarities of the Financial System, transparency is essential to achieve reliability and stability. The central aim of this study is to assess the degree of credit risk disclosure implemented by Brazilian financial institutions, benchmarked against the qualitative and quantitative disclosures required by the Basel II Accord. Based on the analysis of quarterly financial data of the fifty biggest banks, the results of the research show, initially, that the level of disclosure presented a slow and steady growth in the period, despite complying with less than forty percent of the information items required. The Studys Panel Data Regression Analysis revealed that the degree of credit risk disclosure of a period is initially explained by the disclosure of the previous period. It also indicated that the level of disclosure is explained by the Basel II Accords effectiveness, the size of the organization, the level of returns, the fixed-asset to equity-capital ratio and also by the shares listed on Bovespa.