Eugênio José Silva Bitti

Reflexões para um framework da informação de custos do setor público brasileiro

This paper summarises the proposal for a framework for the cost information from the public sector. The proposal derives from contributions provided by the Brazilian central government, on two separate occasions and from two different working teams. The first dates back to 2005 and was presented in the final report of the Interministerial Committee. The second was coordinated by the Ministry of Finance in 2008-2009. These contributions were analysed in accordance with critical papers presented to the academic audience with regards to the framework for financial accounting issued by the International Accounting Standards Board and Financial Accounting Standards Board, and through the lens of the international literature related to the adoption of cost accounting systems in the public sector. Brazilian legislation requires the adoption of such information systems since 1964, although only now it is object of a work conducted by the Finance Ministry, which first results will become available this year. In 2004 the Brazilian Court of Audit issued a decision enforcing legislation - that may improve the number entities adopting a cost accounting system. But adoption is not enough, public managers shall use the information provided by the system - the use cannot efficiently enforced by law, it is a function of the relevance identified by potential users. It is suggested that the adoption of the cost information system and the use of its information in the Brazilian public sector should be a consequence of a gradual and flexibly implementation process, based on the accrual basis of accounting and on only one framework shared by all entities.This paper summarises the proposal for a framework for the cost information from the public sector. The proposal derives from contributions provided by the Brazilian central government, on two separate occasions and from two different working teams. The first dates back to 2005 and was presented in the final report of the Interministerial Committee. The second was coordinated by the Ministry of Finance in 2008-2009. These contributions were analysed in accordance with critical papers presented to the academic audience with regards to the framework for financial accounting issued by the International Accounting Standards Board and Financial Accounting Standards Board, and through the lens of the international literature related to the adoption of cost accounting systems in the public sector. Brazilian legislation requires the adoption of such information systems since 1964, although only now it is object of a work conducted by the Finance Ministry, which first results will become available this year. In 2004 the Brazilian Court of Audit issued a decision enforcing legislation - that may improve the number entities adopting a cost accounting system. But adoption is not enough, public managers shall use the information provided by the system - the use cannot efficiently enforced by law, it is a function of the relevance identified by potential users. It is suggested that the adoption of the cost information system and the use of its information in the Brazilian public sector should be a consequence of a gradual and flexibly implementation process, based on the accrual basis of accounting and on only one framework shared by all entities.

Franchisors' choice between royalties and fixed fees evidence from Brazil

In franchise contracts, the royalty rate and the fixed entrance fee are the main monetary clauses defining the payment scheme between the franchisor and the franchisee. In the traditional agency view, the presence of distant outlets leads the franchisor to choose a payment mechanism designed to provide incentives to the franchisee; that is, a low royalty rate associated with a high fixed fee. Based on a unique panel dataset, we provide evidence that, in the Brazilian context, spatial dispersion has the opposite impact, with interesting practical and research implications.

Spatial strategies in Brazilian Franchising; Behavior categories and Performance Outcome

This empirical article deals with the location strategy and performance outcomes of franchised chains in Brazil. Brazilian franchising has experienced vertiginous process of expansion in recent years, being present in different regions of this country of continental size, including the most remote and less developed. Based on the background literature in economics and management regarding location choices and spatial competition in retailing, we use a new and unique dataset to distinguish several behavior categories in spatial strategies of franchising chains in Brazil, via a two-step cluster analysis. The performance outcomes are then studied with econometric estimations on panel data. Our results provide evidence that the choice for agglomeration, and the location in areas with a high population and a high human development index, lead to higher chain performances.

Vectors of Influence on the Contractual Mix: Geographical Dispersion vs. Automation in Brazilian Franchised Chains

This paper aims the influence of coordination costs on the proportion of company-owned units in Brazilian franchised chains. This influence was split into two competing vectors: the geographical dispersion of outlets on the one hand and the automation/standardization level of processes in the outlets on the other. Greater geographic dispersion increases monitoring costs, which requires performance incentives mechanisms. This view is convergent to the Agency Theory approach for franchising contracts, which proposes that powerful performance incentives are obtained when the local manager is shifted to residual claimant of the outlet (a franchisee). Reciprocally, automated manufacturing processes can increase the chain capability to monitor (even from a distance) its units, reducing the need for more powerful incentives. These statements are tested in this study. The tests are performed based on information from 191 franchised chains in Brazil listed in the yearbook of the Brazilian Franchising Association (ABF-2007). A cross-sectional analysis was performed, in which the proportion of both company-owned and franchised units (the contractual mix) is faced with proxies related to the monitoring capabilities of the chains. The study’s results support the propositions tested: both vectors act in the expected direction on the contractual mix. These results may be useful both for deciding to expand the chain as well as for choosing distinct technology bundles of production processes.

Heurística para a composição de referencial teórico

The process of doing and documenting a literature review is usually quite idiosyncratic. Luft and Shields (2003) presented a process to map theory-consistent empirical research in management accounting. We propose a formal heuristic method for the process of literature reviewing that integrates their mapping process. The heuristic presented here is based on the concept of layers, and it is aimed at mitigating inclusion errors and exclusion errors which might occur when selecting papers for a literature review. These errors impact internal validity and construct validity, since a literature review defines operationalization of variables, choices of proxies and selection of methods. We present an example of actual utilization of the process in a dissertation conducted in a Masters Program in Accountancy. We conclude that the heuristics allowed the researcher to identify outstanding authors in the chosen topic, and the main theories used to support empirical studies. The heuristics supported the operationalization of a research by means of an identification of 199 proxies for 58 related variables, eight theoretical approaches and 57 authors. These results were used to draw a map of the selected topic, based on more objective criteria.