The Impact of the Acounting Regulation on the Conservatism of the Electric Sector Companies in Brazil
DOI:
https://doi.org/10.17524/repec.v3i1.37Keywords:
Conservatism, accounting regulations, electric power sectorAbstract
This article examines whether the application of conservatism is different between companies in the Brazilian electric power sector (which are subject to specific accounting regulations) and other Brazilian companies not subject to any specific rules. Accounting has been studied for its ability to provide information through accounting variables, which is useful for the users' decisions. One of the most important of these variables is accounting income. However, the information content of this income may not accurately reflect a firm's real situation because it can be influenced by factors and characteristics of Brazilian accounting. Among these factors is the existence of specific regulations. The sample consisted of data on companies in the Brazilian electric power sector and other Brazilian companies not subject to any specific accounting rules, covering the period from December 1998 to December 2006, taken from the Economática database. To investigate the differences in accounting income, we used the model proposed by Basu (1997). We found that companies in other sectors act more conservatively. It can be inferred, then, that incidence of specific accounting regulations can influence the application of conservatism in the companies studied.
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Published
2009-05-25
How to Cite
Cantarela Kaizer, C. V., Neris Nossa, S., Teixeira, A. J. C., Baptista, Ézio C. S., & Nossa, V. (2009). The Impact of the Acounting Regulation on the Conservatism of the Electric Sector Companies in Brazil. Journal of Education and Research in Accounting (REPeC), 3(1), 1–24. https://doi.org/10.17524/repec.v3i1.37
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