The Informational Content of Revaluation Reserves in the Brazilian Capital Market

Autores

  • Jomar Miranda Rodrigues Universidade de Brasília
  • Jorge Katsumi Niyama Universidade de Brasília
  • Edilson Paulo Universidade Federal da Paraíba

Palavras-chave:

Value Relevance, Assets Revaluation, Ohlson Model.

Resumo

The use of accounting numbers for evaluation of firms has deserved local and international researches, mostly in the capital market. Multiple studies try to analyze the relevance of revaluation reserves (BARTH and CLINCH, 1998; PAIK, 2009). However, owing to Law No. 11.638/07, forbidding to revaluate assets in Brazil, the significance of assets revaluation is being questioned. Hence, the following research issue: Does the assets revaluation exhibit a relevance information when evaluating capital market firms? The purpose of this work is to verify whether the assets revaluation really brings in a significant informational content for the capital market in Brazil. In order to accomplish that purpose, we employed an approach originating from the Ohlson model (1995), aiming at testing the importance of the revaluation reserves and the market value of Brazilian companies listed by the São Paulo Stock Exchange - BOVESPA, by using quarterly panel data for period  1995-2007. The results showed that nearly 33% of the companies selected in the sampling presented significant information regarding assets revaluation for the capital market. Hard goods, Construction and Transports, Cyclic and Non-cyclic Consumption industries were among the most reserve-based representative economy sectors. It is, therefore, suggested that the assets revaluation does have the informational power and is effectively meaningful for the Brazilian capital market.

Biografia do Autor

Jomar Miranda Rodrigues, Universidade de Brasília

Professor at Universidade de Brasília

Master in Accounting (PPGCC UnB/UFPB/UFRN)

Jorge Katsumi Niyama, Universidade de Brasília

Professor at Universidade de Brasília

Doctorate in Accounting (USP)

Edilson Paulo, Universidade Federal da Paraíba

Universidade Federal da Paraíba

Doctorate in Accounting (USP)

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Publicado

2013-04-26

Como Citar

RODRIGUES, J. M.; NIYAMA, J. K.; PAULO, E. The Informational Content of Revaluation Reserves in the Brazilian Capital Market. Contabilidade Vista & Revista, [S. l.], v. 23, n. 1, p. 75–95, 2013. Disponível em: https://revistas.face.ufmg.br/index.php/contabilidadevistaerevista/article/view/1266. Acesso em: 24 nov. 2024.

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