Andrei Aparecido de Albuquerque

The relationship between earnings quality and the probability of efficient investment decisions in Latin America

Increased conflicts of interest between managers and shareholders may result from information asymmetry. However, the literature has demonstrated that high-quality accounting information can reduce both the probability of information asymmetry and the problems created therein. In this context, few studies have analysed the impact of earnings quality on investment decisions, particularly in less-developed economies. Thus, this study aims to verify whether the earnings quality of Latin American companies affects the probability of efficient investment decisions, over-investments, and the probability of under-investment. For this purpose, a logit model was used, and data from the companies of seven Latin American countries were analysed. The results indicate that poor earnings quality reduces the probability of efficient investment decisions and increases the probability of under-investment. Thus, our primary conclusion is that there is evidence that high-quality accounting information influences the investment decisions of companies in Latin America.

Lessons learned from a successful industrial product service system business model: emphasis on financial aspects

The purpose of this study is to identify the elements of the product-service system (PSS) business model of a Brazilian company that has been running it for almost 50 years. It describes the PSS business model and gives special attention to the financial aspects of PSS implementation and to contingent factors of this emerging country.,The research is based on a single case study. Data have been collected through interviews and document analysis. Results and implications are obtained using Canvas framework to structure information and comparison between theory and practice.,Results described in this paper show that the PSS design and implementation can be strongly influenced by financial and contingent factors. This case indicates that the implementation of PSS business models can follow diverse paths and configurations to fit with companies’ organizational features, local regulations and economic factors, including mixed transactional models and less demanding financial assessments.,This paper provides a roadmap of lessons learned from a multinational manufacturer that has been following the PSS business model for almost 50 years. This paper offers key insights concerning financial aspects and contingency factors that might influence servitization adoption.

Impacto do Nível de Disclosure no Custo de Capital das Empresas Brasileiras de Capital Aberto do Setor de Construção Civil

This research aimed to analyze the effect of disclosure level on the cost of capital of Brazilian public companies of construction sector. Basically, this study aimed to validate the negative relationship between the variables in the Brazilian capital market, as in international markets. The methodology used was quasi-experimental research the type ex post facto, applying multiple linear regression with panel data. In the results wasn’t found significant relationship between disclosure and cost of capital. So it wasn’t provided the negative relationship express by the theory between disclosure level and cost of capital in this business segment in the analyzed period.

Interdependência de Mercados entre América Latina e Estados Unidos

OBJETIVO O presente artigo buscou analisar o grau de interdependencia entre os quatro principais mercados da America Latina (Brasil, Argentina, Chile e Mexico) e o mercado dos Estados Unidos da America (EUA). METODOLOGIA Neste estudo foi realizada uma analise dos graficos das series historicas das cotacoes diarias de fechamento dos indices das bolsas de valores de cada um dos paises. Foram apurados coeficientes de correlacao entre os indices. Adotou-se para o estudo da interdependencia um modelo de Auto-Regressao Vetorial (VAR) e na sequencia foi aplicado o Teste de Causalidade de Granger. RESULTADOS E CONCLUSOES Pode-se afirmar que as bolsas latino-americanas nao exercem influencia sobre a bolsa norte-americana, enquanto o contrario ocorre. Os testes demonstraram, sem evidenciar a direcao da interdependencia e indicios de contagio, relacao estatisticamente significativa entre os mercados dos Estados Unidos e da Argentina, bem como dos mercados mexicano, brasileiro e chileno. Isso faz com que investimentos no Chile, Brasil ou Mexico sejam vistos como de risco (e potencial retorno) similar. Por outro lado, o mercado argentino nao se demonstra uma alternativa tao interessante para composicao de carteira com investimentos nos EUA, devido ao seu forte relacionamento com este ultimo. IMPLICACOES PRATICAS Os resultados obtidos demonstram que um portfolio se tornaria mais eficiente para o investidor se utilizasse investimentos no Chile, Brasil ou Mexico ao inves da Argentina se ja existissem aportes realizados nos Estados Unidos. Alem disso, as taxas de desconto exigidas para aplicacoes no Chile, Brasil e Mexico deveriam ser similares em funcao de sua forte associacao e fundamentos economicos semelhantes. PALAVRAS-CHAVE Interdependencia Financeira de Mercados, Relacao de Mercados, Mercados em desenvolvimento. STOCK MARKET INTERDEPENDENCY BETWEEN LATIN AMERICA AND UNITED STATES OBJECTIVE This article aimed to analyze the degree of interdependence between the four main markets of Latin America (Brazil, Argentina, Chile and Mexico) and the USA market. METHODOLOGY In this study was made an analysis of time series graphs of daily closing prices of the stocks exchange index of each country. The correlation coefficients between the indexes were calculated. It was adopted for the study of interdependence a model of vector auto-regression (VAR) and following was applied the Granger Causality Test. RESULTS AND CONCLUSIONS It can be said that the Latin American stock markets have no influence on the US market, while the opposite occurs. Tests have shown, without evidence of direction of interdependence and contagion evidence, statistically significant relationship between the markets of the United States and Argentina, as well as the Mexican, Brazilian and Chilean markets. This makes investments in Chile, Brazil or Mexico are seen as similiar (and potencial return) risk. On the other hand, the Argentine market does not show an alternative so interesting to portfolio composition with investments in the USA, due to its strong relationship with the latter. PRACICAL IMPLICATIONS The results show that a portfolio would become more efficient for the investor with investments in Chile, Brazil or Mexico instead of Argentina if there were contributions already made in the United States. Furthermore, the discount rates required for applications in Chile, Brazil and Mexico should be similar due to its strong association and similar economic fundamentals. KEYWORDS Markets Financial Interdependence; Markets Relationship; Developing Markets.