68335

Allison Manoel de Sousa
Rodrigo Malta Meurer
Taise Feltes
Alex Mussoi Ribeiro

Contabilidade Vista & Revista

We analyzed the influence of economic cycles on the comparability and consistency of accounting information for publicly traded companies in the Brazilian market. Our sample consisted of 61 companies that were analyzed in annual periods from 2013 to 2019. We calculated comparability through the similarity of the accounting function of DeFranco, Kothari, and Verdi (2011). To measure consistency, we used the measure adapted from DeFranco et al. (2011), developed by Ribeiro (2014). We measure economic cycles using the model by Bry and Boschan (1971) and the sophisticated model by Harding and Pagan (2002). We analyze the data using panel data regressions. We found that financial statements become more comparable in economic cycles of contraction. However, we find that there is a reduction in the comparability in other economic cycles. Accounting information is more consistent in economic downturn cycles. The other economic cycles are less consistent than the contraction economic cycle. As practical implications, our findings help investors and lenders, since the macroeconomic environment can be used as a parameter to understand the behavior of comparability and consistency. Thus, investors will be able to understand the levels of these aspects of accounting information according to each economic cycle to proceed with the decision process between different investment alternatives.

comparability, consistency, economic cycles

SOUSA, A. M.; MEURER, R. M.; FELTES, T.; RIBEIRO, A. M. Influência dos ciclos econômicos na comparabilidade e consistência da informação contábil: evidências em empresas abertas do mercado brasileiro. Contabilidade Vista & Revista, v. 33, n. 2, p. 26-56, 2022.

Sousa, A. M., Meurer, R. M., Feltes, T., & Ribeiro, A. M. (2022). Influência dos ciclos econômicos na comparabilidade e consistência da informação contábil: evidências em empresas abertas do mercado brasileiro. Contabilidade Vista & Revista, 33(2), 26-56.

https://doi.org/10.22561/cvr.v33i2.6449

https://www.spell.org.br/documentos/ver/68335/influence-of-economic-cycles-on-the-comparability-and-consistency-of-accounting-information--evidence-from-publicly-traded-companies-in-the-brazilian-market/i/en

Artigo

Português

Backus, D. K., & Kehoe, P. J. (1992). International evidence on the historical properties of business cycles. The American Economic Review, 82, 864-888.

Bagnoli, M., & Watts, S. G. (2010). Oligopoly, disclosure, and earnings management. The Accounting Review, 85(4), 1191-1214. DOI: 10.2308/accr.2010.85.4.1191.

Balsam, S. (1998). Discretionary accounting choices and CEO compensation. Contemporary Accounting Research, 15(3), 229-252. DOI: 10.1111/j.1911-3846.1998.tb00558.x.

Baptista, E. M. B. (2008). Análise do perfil das empresas brasileiras segundo o nível de gerenciamento de resultados (Tese de Doutorado, Universidade Federal do Rio Grande do Sul), 303 p.

Barth, M. E., Landsman, W. R., Lang, M., & Williams, C. (2012). Are IFRS-based and US GAAP-based accounting amounts comparable?. Journal of Accounting and Economics, 54(1), 68-93. DOI: 10.1016/j.jacceco.2012.03.001.

Brealey, R. A., & Kaplanis, E. (2004). The impact of IMF programs on asset values. Journal of International Money and Finance, 23(2), 253-270. DOI: 10.1016/j.jimonfin.2003.12.003.

Brochet, F., Jagolinzer, A. D., & Riedl, E. J. (2013). Mandatory IFRS adoption and financial statement comparability. Contemporary Accounting Research, 30(4), 1373-1400. DOI: 10.1111/1911-3846.12002.

Bry, G., Boschan, C., 1971. Cyclical Analysis of Time Series: Selected Procedures and Computer Programs. NBER, New York.

Cairns, D., Massoudi, D., Taplin, R., & Tarca, A. (2011). IFRS fair value measurement and accounting policy choice in the United Kingdom and Australia. The British Accounting Review, 43(1), 1-21. DOI: 10.1016/j.bar.2010.10.003.

Chen, C. W., Collins, D. W., Kravet, T. D., & Mergenthaler, R. D. (2018). Financial statement comparability and the efficiency of acquisition decisions. Contemporary Accounting Research, 35(1), 164-202. DOI: 10.1111/1911-3846.12380.

Cheng, Q., & Warfield, T. D. (2005). Equity incentives and earnings management. The Accounting Review, 80(2), 441-476. DOI: 10.2308/accr.2005.80.2.441.

Chi, W., Lisic, L. L., & Pevzner, M. (2011). Is enhanced audit quality associated with greater real earnings management?. Accounting Horizons, 25(2), 315-335. DOI: 10.2308/acch-10025.

Cimini, R. (2015). How has the financial crisis affected earnings management? A European study. Applied Economics, 47(3), 302-317. DOI: 10.1080/00036846.2014.969828.

Claessens, S., Kose, M. A., & Terrones, M. E. (2012). How do business and financial cycles interact?. Journal of International Economics, 87(1), 178-190. DOI: 10.1016/j.jinteco.2011.11.008.

CPC Comitê de Pronunciamentos Contábeis (2019). Estrutura Conceitual para Relatório Financeiro – CPC 00 R2. Pronunciamento técnico CPC 00. Brasília.

Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 50(2-3), 344-401. DOI: 10.1016/j.jacceco.2010.09.001.

DeFond, M. L., & Hung, M. (2003). An empirical analysis of analysts’ cash flow forecasts. Journal of Accounting and Economics, 35(1), 73-100. DOI: 10.1016/S0165-4101(02)00098-8.

DeFond, M. L., & Jiambalvo, J. (1994). Debt covenant violation and manipulation of accruals. Journal of Accounting and Economics, 17(1-2), 145-176.

De Franco, G., Kothari, S. P., & Verdi, R. S. (2011). The benefits of financial statement comparability. Journal of Accounting Research, 49(4), 895-931. DOI: 10.1111/j.1475-679X.2011.00415.x.

Doyle, J., Ge, W., & McVay, S. (2007). Determinants of weaknesses in internal control over financial reporting. Journal of Accounting and Economics, 44(1-2), 193-223. DOI: 10.1016/j.jacceco.2006.10.003.

Fang, X., Li, Y., Xin, B., & Zhang, W. J. (2012). Accounting comparability and loan contracting.

Fávero, L. P., & Belfiore, P. (2017). Manual de análise de dados: estatística e modelagem multivariada com Excel®, SPSS® e Stata®. Elsevier Brasil.

Filip, A., & Raffournier, B. (2014). Financial crisis and earnings management: The European evidence. The International Journal of Accounting, 49(4), 455-478. DOI: 10.1016/j.intacc.2014.10.004.

Financial Accounting Standards Board – FASB (2010). Conceptual Framework for Financial Reporting. Norwalk: FASB.

Francis, J., Hanna, J. D., & Vincent, L. (1996). Causes and effects of discretionary asset write-offs. Journal of Accounting Research, 34, 117-134. DOI: 10.2307/2491429.

Francis, J., LaFond, R., Olsson, P. M., & Schipper, K. (2004). Costs of equity and earnings attributes. The Accounting Review, 79(4), 967-1010. DOI: 10.2308/accr.2004.79.4.967.

Francis, J. R., Pinnuck, M. L., & Watanabe, O. (2014). Auditor style and financial statement comparability. The Accounting Review, 89(2), 605-633. DOI: 10.2308/accr-50642.

Ge, W. (2009). Essays on real earnings management (Doctoral dissertation, McGill University).

Habib, A., Bhuiyan, B. U., & Islam, A. (2013). Financial distress, earnings management and market pricing of accruals during the global financial crisis. Managerial Finance, 39(2), 155-180. DOI: 10.1108/03074351311294007.

Hadi, A. S. (1992). Identifying multiple outliers in multivariate data. Journal of the Royal Statistical Society: Series B (Methodological), 54(3), 761-771. DOI: 10.1111/j.2517-6161.1992.tb01449.x.

Harding, Don, Pagan, Adrian, 2002. Dissecting the cycle: a methodological investigation. Journal of Monetary Economics 49, 365–381. DOI: 10.1016/S0304-3932(01)00108-8.

Haw, I. M., Hu, B., Lee, J. J., & Wu, W. (2012). Investor protection and price informativeness about future earnings: international evidence. Review of Accounting Studies, 17(2), 389-419. DOI: 10.1007/s11142-012-9181-z.

Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1-3), 405-440. DOI: 10.1016/S0165-4101(01)00018-0.

Hendriksen, E. S., & Van Breda, M. F. (1999). Teoria da contabilidade. São Paulo: Atlas, 277-297.

Hochberg, Y. V. (2012). Venture capital and corporate governance in the newly public firm. Review of Finance, 16(2), 429-480. DOI: 10.1093/rof/rfr035.

Holthausen, R. W., Larcker, D. F., & Sloan, R. G. (1995). Annual bonus schemes and the manipulation of earnings. Journal of Accounting and Economics, 19(1), 29-74. DOI: 10.1016/0165-4101(94)00376-G.

IPEA Instituto de Pesquisa Econômica Aplicada (2020). Produto interno bruto (PIB) real. Acesso em: 30 mar. 2020. Disponível: http://www.ipeadata.gov.br/ExibeSerie.aspx?serid=38414

Kousenidis, D. V., Ladas, A. C., & Negakis, C. I. (2013). The effects of the European debt crisis on earnings quality. International Review of Financial Analysis, 30, 351-362. DOI: 10.1016/j.irfa.2013.03.004.

Lang, M., Lins, K. V., & Maffett, M. (2012). Transparency, liquidity, and valuation: International evidence on when transparency matters most. Journal of Accounting Research, 50(3), 729-774. DOI: 10.1111/j.1475-679X.2012.00442.x.

Lee, C. W. J., Li, L. Y., & Yue, H. (2006). Performance, growth and earnings management. Review of Accounting Studies, 11(2-3), 305-334. DOI: 10.1007/s11142-006-9009-9.

Marra, A., Mazzola, P., & Prencipe, A. (2011). Board monitoring and earnings management pre-and post-IFRS. The International Journal of Accounting, 46(2), 205-230. DOI: 10.1016/j.intacc.2011.04.007.

Martins, V. G., Paulo, E., & Monte, P. A. (2016). O gerenciamento de resultados contábeis exerce influência na acurácia da previsão de analistas no Brasil? Revista Universo Contábil, 12(3), 73-90. DOI: 10.4270/RUC.2016322.

McVay, S., Nagar, V., & Tang, V. W. (2006). Trading incentives to meet the analyst forecast. Review of Accounting Studies, 11(4), 575-598. DOI: 10.1007/s11142-006-9017-9

Melo, P. H. F. (2015). Gerenciamento de Resultados Contábeis e o desempenho das ofertas públicas iniciais de ações de empresas brasileiras (Dissertação de mestrado, Universidade Federal de Minas Gerais), 250p.

Neel, M. (2017). Accounting comparability and economic outcomes of mandatory IFRS adoption. Contemporary Accounting Research, 34(1), 658-690. DOI: 10.1111/1911-3846.12229.

Paulo, E., & Mota, R. H. G. (2019). Ciclos econômicos e estratégias de gerenciamento de resultados contábeis. Revista Contabilidade & Finanças, 30(81), 216-233. DOI: 10.1590/1808-057x201806870.

Reina, D. R. M., de Carvalho, L. N. G., Reina, D., & Lemes, S. (2019). Comparabilidade dos relatórios financeiros e informatividade dos preços das ações no Brasil. Revista Contemporânea de Contabilidade, 16(39), 177-198. DOI: 10.5007/2175-8069.2019v16n39p177.

Ribeiro, A. M. (2014). Poder discricionário do gestor e comparabilidade dos relatórios financeiros: uma análise dos efeitos da convergência do Brasil às IFRS (Tese de Doutorado, Universidade de São Paulo), 217 p.

Ribeiro, A. M., Carmo, C. H. S., Fávero, L. P. L., & Carvalho, L. N. (2016). Poder discricionário do gestor e comparabilidade dos relatórios financeiros: uma análise do processo de transição regulatória da contabilidade brasileira. Revista Contabilidade & Finanças-USP, 27(70), 12-28. DOI: 10.1590/1808-057x201601900.

Ribeiro, A. M., Carmo, C. H. S., Fávero, L. P. L., & de Carvalho, L. N. G. (2016). Comparabilidade X Uniformidade dos Relatórios Financeiros: Uma Análise Empírica Durante o Período de Transição Regulatória da Contabilidade Brasileira ao Padrão Internacional. Advances in Scientific and Applied Accounting, 9(3), 262-282. DOI: 10.14392/ASAA.2016090302.

Ribeiro, A. M., Sousa, A. M., & Vicente, E. F. R. (2019) Impacto da Troca de Auditor na Comparabilidade dos Relatórios Financeiros: Uma Análise em Companhias Brasileiras de Capital Aberto. Anais do XIX USP International Conference in Accounting, São Paulo, Brasil, 1-20.

Rodrigues, R. M. R. C., Melo, C. L. L. D., & Paulo, E. (2019). Gerenciamento de Resultados e Nível dos Accruals Discricionários Trimestrais no Mercado Acionário Brasileiro. BBR. Brazilian Business Review, 16(3), 297-314. DOI: 10.15728/bbr.2019.16.3.6.

Schipper, K. (1989). Earnings management. Accounting horizons, 3(4), 91.

Schumpeter, J. A. (1939). Business cycles: a theoretical, historicaland statistical analysis of the capitalist process. New York/Toronto/London: McGraw-Hill.

Scott, W. R. (2009). Financial accounting theory. Norwalk USA.

Shuto, A. (2007). Executive compensation and earnings management: Empirical evidence from Japan. Journal of International Accounting, Auditing and Taxation, 16(1), 1-26. DOI: 10.1016/j.intaccaudtax.2007.01.004.

Simmons, J. K. (1967). A concept of comparability in financial reporting. The Accounting Review, 42(4), 680-692.

Sohn, B. C. (2016). The effect of accounting comparability on the accrual-based and real earnings management. Journal of Accounting and Public Policy, 35(5), 513-539. DOI: 10.1016/j.jaccpubpol.2016.06.003.

Sousa, A. M., & Ribeiro, A. M. (2020). A remuneração dos executivos mitiga os accruals discricionários? Uma análise em bancos brasileiros de capital aberto. Contextus –Revista Contemporânea de Economia e Gestão, 18(3), 25-38. DOI: 10.19094/contextus.2020.42452.

Sousa, A. M., Ribeiro, A. M., Vicente, E. F. R., & do Carmo, C. H. S. (2020). Suavização de resultados e comparabilidade dos relatórios financeiros: evidências em empresas abertas do mercado brasileiro. Revista de Contabilidade e Organizações, 14, e164488-e164488. DOI: 10.11606/issn.1982-6486.rco.2020.164488.

Stock, James, Watson, Mark W. (1999). Business cycle fluctuations in US macroeconomic time series. In: Taylor, J.B., Woodford, M. (Eds.), Handbook of Macroeconomics, vol. 1, pp. 3–64.

Su, R., Yang, Z., & Dutta, A. (2018). Accounting information comparability and debt capital cost empirical evidence from Chinese listed companies. Asian Economic and Financial Review, 8(1), 90-102. Watts, R. L., & Zimmerman, J. L. (1986). Positive accounting theory.

Yip, R. W., & Young, D. (2012). Does mandatory IFRS adoption improve information comparability? The Accounting Review, 87(5), 1767-1789. DOI: 10.2308/accr-50192

Zang, A. Y. (2012). Evidence on the trade-off between real activities manipulation and accrual-based earnings management. The Accounting Review, 87(2), 675-703. DOI: 10.2308/accr-10196.