Relation between the Market Risk and the Quality of Accounting Information for the Brazilian Financial Institutions

The study aimed to analyze the relationship between the market risk and the quality of accounting information of Brazilian financial institutions. The variables used in the study were: (i) volatility of the stock; (ii) quality of information accounting index through disclosure; (iii) size, profitabi...

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Bibliographic Details
Published in:	Revista de administração FACES journal Vol. 16; no. 4; pp. 85 - 101
Main Authors:	Ramos, Fernando Maciel, Caramori, Renan
Format:	Journal Article
Language:	English
Published:	Universidade FUMEC 27-12-2017
Subjects:	Disclosure Market Risk Quality of Accounting Information Transparency Volatility
Online Access:	Get full text
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Summary:	The study aimed to analyze the relationship between the market risk and the quality of accounting information of Brazilian financial institutions. The variables used in the study were: (i) volatility of the stock; (ii) quality of information accounting index through disclosure; (iii) size, profitability and debt. The survey sample consists of 55 organizations belonging to the financial segment of the BM&FBovespa. The results of multiple linear regression analysis demonstrated a significant compared to the proposed model with a power of explanation of 52.10%. The results converged to explain the study's assumption, resulting in a significant negative correlation between volatility and quality of accounting information, as well as volatility and size, and profitability. Starting from the main point, it is concluded that companies with a higher level of disclosure have lower volatility of stock returns, effecting thus cited and presumed importance attached by the market to the accounting information.
ISSN:	1984-6975 1517-8900 1984-6975
DOI:	10.21714/1984-6975FACES2017V16N4ART4201