The Influence of Company Size on Accounting Information: Evidence in Large Caps and Small Caps Companies Listed on BM FBovespa

• Published in: Revista de educação e pesquisa em contabilidade Vol. 9; no. 3
• Main Authors: Karen Yukari Yokoyama, Vitor Gomes Baioco, William Brasil Rodrigues Sobrinho, Alfredo Sarlo Neto
• Format: Journal Article
• Language: English
• Published: Conselho Federal de Contabilidade (CFC) 01-09-2015
• Subjects: Aspectos da Informação Contábil; Níveis de Capitalização; Porte das Empresas
• ISSN: 1981-8610
• DOI: 10.17524/repec.v9i3.1275

In this study, the relation between accounting information aspects and the capitalization level o companies listed on the São Paulo Stock Exchange was investigated, classified as Large Caps or Small Caps, companies with larger and smaller capitalization, respectively, between 2010 and 2012. Three accounting information measures were addressed: informativeness, conservatism and relevance, through the application of Easton and Harris’ (1991) models of earnings informativeness, Basu’s (1997) model of conditional conservatism and the value relevance model, based on Ohlson (1995). The results appointed that, although the Large Caps present a higher level of conservatism, their accounting figures were less informative and more relevant when compared to the Large Caps companies. Due to the greater production of private information (predisclosure) surrounding larger companies, the market would tend to respond less strongly or surprised to the publication of these companies’ accounting information, while the lack of anticipated information would make the effect of disclosing these figures more preponderant for the Small Caps companies.