Earnings Management and Guidance: A Study on Brazilian Companies

Objective: This study investigates whether earnings management practices explain how Brazilian companies achieve disclosed guidance. Method: The sample consisted of companies listed on Brasil, Bolsa, Balcão (B3 S.A.) from 2010 to 2020. These companies’ forecasts (guidance) for accounting and perform...

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Detalhes bibliográficos
Autores: MAGALHÃES DOMINGOS, SYLVIA REJANE, RODRIGUES PONTE, VERA MARIA, PAULO, EDILSON, HOLANDA DA SILVA, ANTONIO RAFAEL
Tipo de documento: artigo
Estado:Versão publicada
Data de publicação:2024
País:Brasil
Recursos:Academia Brasileira de Ciências Contábeis (Abracicon)
Repositório:Revista de Educação e Pesquisa em Contabilidade
Idioma:português
inglês
OAI Identifier:oai:ojs.www.repec.org.br:article/3405
Acesso em linha:https://www.repec.org.br/repec/article/view/3405
Access Level:Acceso aberto
Palavra-chave:gerenciamento de resultados
Guidance
Companhias abertas
Descrição
Resumo:Objective: This study investigates whether earnings management practices explain how Brazilian companies achieve disclosed guidance. Method: The sample consisted of companies listed on Brasil, Bolsa, Balcão (B3 S.A.) from 2010 to 2020. These companies’ forecasts (guidance) for accounting and performance indicators were collected and compared with actual figures, generating the variable error in achieving guidance. Earnings management levels were analyzed using accrual-based and operational activities. Results: Regression analysis indicates that companies use accrual-based earnings management to meet disclosed guidance when projections exceed actual results. Conversely, when guidance falls below actual results, companies employ operational activity-based management. Contributions: This study’ adds to the discussion on guidance and earnings management by introducing a variable to capture the error in achieving disclosed guidance, highlighting its innovative contribution.