Determinants of Asymmetric Loss Recognition Timeliness in Public and Private Firms in Brazil

36 Pages Posted: 25 Jan 2010 Last revised: 9 Jan 2016

See all articles by Antonio Carlos Coelho

Antonio Carlos Coelho

UFC - FEAAC - PPAC

Fernando Caio Galdi

Fundacao Instituto Capixaba de Pesquisas em Contabilidade, Economia e Financas (FUCAPE)

Alexsandro Broedel Lopes

Universidade de São Paulo; Manchester Business School

Date Written: January 24, 2010

Abstract

We investigate the determinants of asymmetric loss recognition timeliness (ALRT) for public and private Brazilian firms. We extend and complement Ball and Shivakumar (2005) by investigating ALRT for private and public firms in Brazil where, unlike in the UK setting, equity markets do not provide the adequate incentives for high quality financial reporting. In Brazil, even the public companies listed on Stock Exchange do not face the same institutional environment of the British firms. Using a unique database of Brazilian public and private firms we document that Brazilian public and private firms present similar ALRT, different from the evidence that Ball and Shivakumar (2005) reported for the UK. We also show that ALRT is not significantly affected by firm’s issuing activity in debt markets, leverage and the presence of covenants.

Keywords: Earnings quality, conservatism, loss recognition, private firms, public leverage, emerging markets, Brazil

JEL Classification: M41, K22, N24

Suggested Citation

Coelho, Antonio Carlos Dias and Galdi, Fernando Caio and Broedel Lopes, Alexsandro, Determinants of Asymmetric Loss Recognition Timeliness in Public and Private Firms in Brazil (January 24, 2010). Available at SSRN: https://ssrn.com/abstract=1541628 or http://dx.doi.org/10.2139/ssrn.1541628

Antonio Carlos Dias Coelho

UFC - FEAAC - PPAC ( email )

Avenida da Universidade, 2431
Benfica
Fortaleza, Ceara 60.020-180
Brazil
+ 55 85 3366 7802 (Phone)

HOME PAGE: http://www.feaac.ufc.br

Fernando Caio Galdi (Contact Author)

Fundacao Instituto Capixaba de Pesquisas em Contabilidade, Economia e Financas (FUCAPE) ( email )

Av. Fernando Ferrari, 1358
Vitoria, ES 29075-010
Brazil

HOME PAGE: http://www.fucape.br

Alexsandro Broedel Lopes

Universidade de São Paulo ( email )

Av. Prof. Luciano Gualberto 908
São Paulo, 05508-900
Brazil
+55 11 3091 5820 (Phone)
+55 11 3813 0120 (Fax)

Manchester Business School

Booth Street West
Manchester, M15 6PB
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
307
Abstract Views
1,420
rank
98,387
PlumX Metrics