Earnings Quality in Brazilian Public Companies Supervised by Regulatory Agencies
28 Pages Posted: 2 Dec 2011
Date Written: November 30, 2011
The study investigates regulation impact on earnings quality in Brazilian firms. The Brazilian context provides an ideal set of conditions to explore this issue, such as code law, weak institutional environment and weak enforcement. In view of the scenario, we expected the presence of regulatory agencies to improve earnings quality and to reduce information asymmetry in Brazilian firms. The hypothesis was not confirmed by the findings as regulation was found not to improve earnings quality of Brazilian firms. The study draws attention to the need for regulatory agencies to encourage good accounting practices and strengthen economic regulations in Brazil.
Keywords: Regulation, Asymmetric Loss Recognition Timeliness, Earnings Quality
JEL Classification: M41, K23, N26
Suggested Citation: Suggested Citation