Relationship between the accounting asset informativeness and Brazilian companies’ systematic risk
DOI:
https://doi.org/10.17524/repec.v18i1.3322Keywords:
PortuguêsAbstract
Objective: This study analyzed a potential relationship between accounting asset informativeness and
Brazilian companies’ systematic risk. The research hypothesis assumes that factors restricting uncertainty,
including better-quality information, decrease investors’ risk perception.
Method: Regressions were estimated with panel data, using data concerning 2010 to 2021 from 186
companies. In addition to overall asset informativeness, the analysis included informativeness resulting
from the companies’ choices (discretionary portion) and informativeness inferred from related companies
in the same sector (non-discretionary portion).
Results: Asset informativeness proved relevant and negatively associated with the Brazilian companies’
systematic risk, with its non-discretionary portion having a more intense effect on systematic risk than
the discretionary portion.
Contributions: This study’s results are relevant for users of accounting information, those who prepare
accounting reports, and regulators as it contributes to the discussion on the quality of accounting
information, highlighting its relationship with the systematic risk of companies through a measure
focused on assets, and suggesting metrics that can assist in the estimation of the companies’ value, besides
providing evidence of the economic consequences of accounting choices.
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