CONDITIONAL CONSERVATISM IN REPORTING EARNINGS IN BRAZILIAN PUBLIC COMPANIES: DIFFERENCES BETWEEN ADR ISSUING AND NOT-ISSUING COMPANIES AND BETWEEN ACCOUNTING SYSTEMS

Authors

  • Antonio Carlos Dias Coelho Universidade Federal do Ceará
  • Joanília Neide de Sales Cia Universidade de São Paulo
  • Iran Siqueira Lima Universidade de São Paulo

Keywords:

Conditional conservatism, ADR’s issuing, Accounting systems, Losses asymmetric anticipation, Public companies.

Abstract

The article examines the differences, in terms of information quality (conditional conservatism), of the accounting reports of Brazilian public companies issuing and not issuing ADR. It is also examined the demonstrations published in the two accounting systems (BRGAAP and USGAAP). The hypotheses consider that there are no differences in the degrees of conditional conservatism among the firms due to: contractual and institutional similarities, the inexistence of incentives to modify managers’ behavior by the process of cross-listing, and the lack of motivation by application of different accounting principles. The models of Transitory Earnings Components (BASU, 1997) and Association between Accruals and Cash Flows (BALL; SHIVAKUMAR, 2005) were used for the tests. To estimate the association coefficients for the two models, it was used panel data analysis. The results confirmed the hypotheses.

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Author Biographies

Antonio Carlos Dias Coelho, Universidade Federal do Ceará

Pós-doutor em Ciências Contábeis pela Faculdade de Economia, Administração e Contabilidade da Universidade de São Paulo (FEA-USP). Professor associado da Faculdade de Economia, Administração, Atuária, Contabilidade e Secretariado Executivo da Universidade Federal do Ceará (UFC).

Joanília Neide de Sales Cia, Universidade de São Paulo

Doutora em Administração pela Escola de Administração de Empresas de São Paulo da Fundação Getulio Vargas. Professora da Faculdade de Economia, Administração e Contabilidade da Universidade de São Paulo (FEA-USP).

Iran Siqueira Lima, Universidade de São Paulo

Doutor em Ciências Contábeis pela Faculdade de Economia, Administração e Contabilidade da Universidade de São Paulo (FEA-USP). Professor doutor da Faculdade de Economia, Administração e Contabilidade da Universidade de São Paulo.

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Additional Files

Published

2009-11-04

Issue

Vol. 11 No. 1 (2010)

Section

Strategic Finances

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