Financial Restatements and Dividend Policy: Compensation and Signaling in the Brazilian Capital Market

Autores

  • Laise Mascarenhas Ballarini Universidade Federal do Espírito Santo
  • Vagner Antônio Marques Universidade Federal do Espírito Santo http://orcid.org/0000-0001-7210-4552
  • Carolini Verdan Brandão Oliveira Universidade Federal do Espírito Santo
  • Elisa Elaine Moreira Teixeira Centro Universitário Planalto do Distrito Federal

DOI:

https://doi.org/10.17524/repec.v19.e3683

Palavras-chave:

Reapresentação das Demonstrações Financeiras; Política de Dividendos; Teoria da Sinalização.

Resumo

Objective: This study examines whether companies that issue financial restatements compensate their shareholders with higher dividends in the years following a restatement.
Method: Data from 275 companies listed on the Brasil, Bolsa, Balcão (B3) from 2010 to 2020 were analyzed using descriptive statistics, mean difference tests, and panel data regression analysis.
Results and Contributions: The findings indicate that, unlike companies that do not issue restatements, those that do compensate their shareholders with higher dividends. Moreover, dividends in the subsequent year tend to be even higher, reinforcing the hypothesis that dividends serve as a signaling mechanism to reduce information asymmetry and compensate shareholders. These results provide insights for researchers, managers, accountants, auditors, regulators, and other stakeholders interested in the implications of restatements for the dividend policies of publicly traded companies.
Gap: While previous research suggests that companies with lower-quality financial information typically pay lower dividends, an alternative explanation is that these companies attempt to signal financial stability by compensating shareholders with higher dividends. This study fills in this gap by presenting evidence in the Brazilian capital market.
Relevance: This study is relevant because it shows that companies with lower earnings quality, as indicated by financial restatements, tend to compensate investors in subsequent periods through higher dividends.
Impact: Unlike previous research, this study shows that companies with lower earnings quality, with restatement as a proxy, may use dividend policy as a strategy to appease investors. Therefore, this study contributes to the risk assessment processes of auditors, investors, governance and audit committee members, and regulators.

Tradução

Biografia do Autor

Laise Mascarenhas Ballarini, Universidade Federal do Espírito Santo

Bacharel em Ciências Contábeis pela  UFES

Mestre em Ciências Contábeis pelo PPGCON/UFES

Vagner Antônio Marques, Universidade Federal do Espírito Santo

Professor Adjunto do Depto. de Ciências Contábeis da Universidade Federal do Espírito Santo

Carolini Verdan Brandão Oliveira, Universidade Federal do Espírito Santo

Mestre em Ciências Contábeis pelo PPGCON/UFES

Elisa Elaine Moreira Teixeira, Centro Universitário Planalto do Distrito Federal

Doutora em Administração pela UFMG

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Publicado

28-03-2025

Como Citar

Ballarini, L. M., Marques, V. A., Oliveira, C. V. B., & Teixeira, E. E. M. (2025). Financial Restatements and Dividend Policy: Compensation and Signaling in the Brazilian Capital Market. Revista De Educação E Pesquisa Em Contabilidade (REPeC), 19. https://doi.org/10.17524/repec.v19.e3683