Relationship between the accounting asset informativeness and Brazilian companies’ systematic risk

Authors

  • Vanessa Rodrigues dos Santos Cardoso Universidade de Brasília
  • Português Português

DOI:

https://doi.org/10.17524/repec.v18i1.3322

Keywords:

Português

Abstract

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.

Author Biography

Português, Português

Doutor em Economia pela University of Illinois at Urbana-Champaign (UIUC)

Professor Associado da Universidade de Brasília (UnB)

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Published

2024-03-28

How to Cite

Cardoso, V. R. dos S., & Português, P. (2024). Relationship between the accounting asset informativeness and Brazilian companies’ systematic risk. Journal of Education and Research in Accounting (REPeC), 18(1). https://doi.org/10.17524/repec.v18i1.3322

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