Capex’s Impact On Brazilian Companies’ Performance

Authors

  • Graziela Fortunato Fucape Business School
  • Bruno Funchal Fucape Business School
  • Andre Motta Fucape Business School

Keywords:

Investimento, Desempenho das Empresas, Valor de Mercado, Lucro Operacional, Dados de Painel

Abstract

This article aims to verify if the Brazilian companies´ Capex have any contribution to their performance. The Brazilian companies considered were those part of Ibovespa from 1998 to 2007. It is hard to find in the literature studies that investigate how capex affect the companies’ performance (LI, 2006). In Brazil, the researches normally analyze the impact on the stock prices based on the information’s disclosure through window events technique (ANTUNES; PROCIANOY, 2003; FAMÁ; LUCCHESI, 2005; LYRA; OLINQUEVICTH, 2007; MCCONNELL; MUSCARELLA, 1985). This could be considered a gap in the financial discipline and this study is to reduce this gap. Thus, we employed the panel data technique with a sample of 508 companies. We also adopted the companies’ market value and the earnings before interest and taxes (EBIT) as proxys for their performance. The results indicate that the capex has a positive relation to the companies’ performance, however, no relation is found considering operational earnings. This suggests that Lyandres et al. (2008) e Titman et al. (2004) results did not fit into Brazilian companies since there is no negative relation between capex and the companies’ performance. We expect to give helping information to valuation model as well as guidance of quality on management decision. 

Downloads

Download data is not yet available.

Author Biographies

Graziela Fortunato, Fucape Business School

Doutora em Administração do Departamento da Escola de Negócios (IAG) da Pontifica Universidade Católica do Rio de Janeiro (PUC Rio)

Professora do Departamento de Administração da Fucape Business School

Bruno Funchal, Fucape Business School

Doutor em Economia pela Escola de Pós-Graduação em Economia da Fundação Getúlio Vargas do Rio de Janeiro (EPGE – FGV/RJ)

Professor do Departamento de Ecnonomia da Fucape Business School 

Andre Motta, Fucape Business School

Mestre em Administração pela Fucape Business School

Líder de Planejamento no Departamento do Projeto Vargem Grande Itabiros da Vale S.A

Downloads

Additional Files

Published

2011-11-10

Issue

Vol. 13 No. 4 (2012)

Section

Strategic Finances

License

Once the papers have been approved, the authors will assign their copyrights to this Journal.  The Copyright Assignment Conditions include:

1.  The Mackenzie Administration Journal holds the rights to all the papers published therein through assignment of copyright. 

2.  The author retains moral rights to the paper, including the right to identify the author whenever the article is published.

3. As of July 1, 2015 RAM adopted the CC-BY license standard (Creative Commons– BY). Authors are allowed to copy, distribute, display, transmit and adapt articles. Authors must attribute to RAM explicitly and clearly an article’s original publication (with reference to the journal’s name, edition, year and pages in which the article was originally published), yet without suggesting that RAM endorses the author or its use of the article. Contents are released by means of the CC-BY license to fully inter-operate with a variety of different systems and services, including for commercial purposes. In case of an article’s reuse or distribution, authors must make the article’s licensing terms clear to third parties. CC-BY criteria follow open access policies by major OA (Open Access) publishers and journals, such as PLoS, eLife, Biomed Central and Hindawi, among others.

4.  When formally requested by the author, this Journal may allow the paper to be published as a chapter or part of a book.  The only requirement is that prior publication in this Journal (Journal name, issue, year and pages) must be clearly and explicitly shown as a reference.