Financial Slack and Market Performance: an Analysis of Brazilian and Italian Companies
DOI:
https://doi.org/10.51341/1984-3925_2017v20n2a6Keywords:
Financial slack, Market performance, Brazilian companies, Italian companiesAbstract
The aim of the study was to verify the effect of financial freedom on the market performance of companies in Brazil and Italy, by using a descriptive methodology given the aim to document procedures as well as to address the problem from a quantitative approach. The sample comprised 47 Brazilian companies and 29 Italian companies, which presented all the necessary information to carry out the study. The period of analysis corresponded to the years 2010 to 2013. As statistical techniques, we used a descriptive analysis and panel data applied in 5 regression equations. It was observed that the financial slack has a greater impact on the market performance of Italian companies, than on Brazilian companies. It was noted that the positive effect of the financial slack in Brazil’s business scenario contributed to the increase of the market-to-book, but on the Italian scenario the opposite effect was observed. Thus, it was deduced that the effect of financial freedom on market performance depends on the environment in which firms are inserted.
Downloads
References
Ahmad, W., Sehgal, S., & Bhanumurthy, N. R. (2013). Eurozone crisis and BRIICKS stock markets: Contagion or market interdependence?. Economic Modelling, 33, 209-225.
Asongu, S. A. (2012). Government quality determinants of stock market performance in African countries. Journal of African Business, 13(3), 183-199.
Assaf Neto, A. (2014). Valuation: métricas de valor & avaliação de empresas. São Paulo: Atlas.
Bastos, D. D. & Nakamura, W. T. (2009). Determinantes da estrutura de capital das companhias abertas no Brasil, México e Chile no período 2001-2006. Revista Contabilidade & Finanças-USP, 20(50), 75-94.
Beuren, I. M., Starosky Filho, L., & Krespi, N. T. (2013). Folga organizacional versus desempenho financeiro. Um estudo nas empresas da BM & FBovespa. Contaduría y Administración: Revista Internacional, 59(2), 145-177.
Bradley, S. W., Shepherd, D. A., & Wiklund, J. (2011). The importance of slack for new organizations facing ‘tough’environments. Journal of Management Studies, 48(5), 1071-1097.
Brito, E. P. Z., Brito, L. A. L., & Morganti, F. (2009). Inovação e o desempenho empresarial: lucro ou crescimento?. RAE eletrônica, 8(1).
Bromiley, P. (1991). Testing a causal model of corporate risk taking and performance. Academy of Management journal, 34(1), 37-59.
Campos, A. & Nakamura, W. T. (2013). Folga Financeira Avaliada como Endividamento Relativo e Estrutura de Capital. Revista de Finanças Aplicadas, 1, 1-19.
Campos, A. L. S. (2011). Folga Financeira e o Rebalanceamento da Estrutura de Capital. 117 f. Tese (Doutorado em Administração de Empresas) - Universidade Presbiteriana Mackenzie, São Paulo.
Daniel, F., Lohrke, F. T., Fornaciari, C. J., & Turner, R. A. (2004). Slack resources and firm performance: a meta-analysis. Journal of Business Research, 57(6), 565-574.
Dechow, P. M. (1994). Accounting earnings and cash flows as measures of firm performance: The role of accounting accruals. Journal of accounting and economics, 18(1), 3-42.
Dumontier, P. e Raffournier, B. (2002): “Accounting and Capital Markets: A Survey of the European Evidence”. The European Accounting Review, 11(1), 119-151.
Facó, J. F. B. (2009). Capacidade de inovação organizacional: uma análise aplicada à indústria de transformação paulista. 215 f. Tese (Doutorado em Administração) – Universidade de São Paulo, São Paulo.
Fischmann, A. A., & Zilber, M. A. (1999). Utilização de Indicadores de Desempenho para a Tomada de Decisões Estratégicas: Um Sistema de Controle. Revista de Administração da Mackenzie, 1(1), 9 – 25.
Gasparetto, V. (2004). O papel da Contabilidade no provimento de Informações para a Avaliação do Desempenho Empresarial. Revista Contemporânea de Contabilidade, 1(2), 109-122.
George, G. (2005). Slack resources and the performance of privately held firms. Academy of Management Journal, 48(4), 661-676.
Graham, J. R., & Harvey, C. R. (2001). The theory and practice of corporate finance: Evidence from the field. Journal of financial economics, 60(2), 187-243.
Greenley, G. E., & Oktemgil, M. (1998). A comparison of slack resources in high and low performing British companies. Journal of Management Studies, 35(3), 377-398.
Hendriksen, E. S., & Van Breda, M. F. (1999). Teoria da contabilidade; tradução de Antonio Zoratto Sanvicente. São Paulo: Atlas.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2002). Administração estratégica. Pioneira Thomson Learning.
Jensen, M. C., & Meckling, W. H. (1979). Theory of the firm: Managerial behavior, agency costs, and ownership structure (pp. 163-231). Springer Netherlands.
Jos Neto & Martins, H. (2010). Finanças e governança corporativa. Elsevier Brasil.
Kim, H., Kim, H., & Lee, P. M. (2008). Ownership structure and the relationship between financial slack and R&D investments: Evidence from Korean firms. Organization Science, 19(3), 404-418.
Korajczyk, R. A., & Levy, A. (2003). Capital structure choice: macroeconomic conditions and financial constraints. Journal of Financial Economics, 68(1), 75-109.
Lima, A. F. (2008). Estudo da relação causal entre os níveis organizacionais de folga, o risco e o desempenho financeiro de empresas manufatureiras. 252 f. Tese (Doutorado em Administração de Empresas) – Universidade Presbiteriana Mackenzie, São Paulo.
Lima, A. F., Basso, L. F. C., & Kimura, H. (2009). Folga organizacional e atitudes perante o desempenho como determinantes do risco de empresas. In: Simpósio de Administração da Produção, Logística e Operações Internacionais, 12.
Macedo, M. A. S., & Corrar, L. J. (2010). Análise do Desempenho Contábil-Financeiro de Seguradoras no Brasil no Ano de 2007: um Estudo Apoiado em Análise Hierárquica (AHP). Contabilidade Vista & Revista, 21(3), 135-165.
Mackinlay, A.C. 1997. Event studies in economics and finance. Journal of Economic Literature, 35(1), 13-39.
Mishina, Y., Pollock, T.G., & Porac, J.F. (2004). Are more resources always better for growth? Resource stickiness in market and product expansion. Strategic Management Journal, 25(12), 1179–1197.
Nagem, L. M., & Amaral, H. F. (2013). Retornos anormais das ações pós-pagamento de dividendos: um estudo empírico no mercado brasileiro a partir de 2009. Revista Contabilidade e Controladoria, 5(2), 61-73.
Oliveira, M. C., De Luca, M. M. M., Ponte, V. M. R., & Pontes Junior, J. E. (2009). Disclosure of social information by Brazilian companies according to United Nations indicators of corporate social responsibility. Revista Contabilidade Finanças, 20(51), 116-132.
Palepu, K., & Healy, P. (2007). Business analysis and valuation: Using financial statements. Cengage Learning.
Ross, S. B. (1977). On the mode of action of central stimulatory agents. Acta pharmacologica et toxicologica, 41(4), 392-396.
Sharfman, M. P., Wolf, G., Chase, R. B., & Tansik, D. A. (1988). Antecedents of organizational slack. Academy of Management Review, 13(4), 601-614.
Silva, C. B. (2013). Isomorfismo Mimético: Folga Financeira nas Organizações dos EUA e BRICS. In: XVI SEMEAD, Seminários em Administração, 2013.
Singh, J.V. (1986). Performance, slack, and risk taking in organizational decision making. Academy of Management Journal, 29(3), 562–585.
Soliman, M. T. (2004). Using industry-adjusted DuPont analysis to predict future profitability. Available at SSRN 456700.
Teixeira, N. M. D., & Amaro, A. G. C. (2013). Avaliação do desempenho financeiro e da criação de valor–um estudo de caso. Revista Universo Contábil, 9(4), 157-178.
Titman, S. & Wessels, R. (1988). The determinants of capital structure choice. The Journal of finance, 43(1), 1-19.
Venkatraman, N., & Ramanujam, V. (1986). Measurement of business performance in strategy research: A comparison of approaches. Academy of management review, 11(4), 801-814.
Zhong, H. (2011). The Relationship between Slack Resources and Performance: an empirical study from China. International Journal of Modern Education and Computer Science (IJMECS), 3(1), 1.
Wernke, R., & Lembeck, M. (2004). Análise de rentabilidade dos segmentos de mercado de empresa distribuidora de mercadorias. Revista Contabilidade & Finanças, 15(35), 68-83.
Young, S. D., & O'BYRN, S. F. (2003). EVA e gestão baseada em valor. Bookman.
Downloads
Published
How to Cite
Issue
Section
License
The authors hold the copyright to their article and grant the Journal of Accounting, Management and Governance the exclusive rights of first publication (including communication to the public and reproduction), with the work simultaneously licensed under the Creative Commons Attribution Non-Commercial 4.0 International License (CC BY-NC).
This license allows third parties to remodel, adapt, and create from the published work, as long as it is for non-commercial purposes, giving due credit for authorship and initial publication in this journal.
Authors are permitted to enter into additional separate agreements for non-exclusive distribution of the version of the work published in this journal (e.g., publish in an institutional repository, on a personal website, publish a translation, or publish a book chapter), with acknowledgment of authorship and initial publication in this journal, provided there is no commercial use/distribution.
