Does CEO’s compensation mitigate discretionary accruals? An analysis of publicly traded Brazilian banks

Authors

DOI:

https://doi.org/10.19094/contextus.2020.42452

Keywords:

discretionary accruals, banks, earnings management, quality of accounting information, CEO’s compensation

Abstract

This study objective to analyze the influence of CEO’s compensation on earnings management in Brazilian banking companies. We analyzed 17 banking companies that traded shares in B3 between 2010 and 2018. Data were analyzed using descriptive statistics and multivariate analysis using quantile regression. The results show that there was no difference in earnings management levels and executive compensation over the years, even in periods of economic recession (2015 and 2016). Moreover, evidence shows that companies with the highest levels of earnings management are sensitive to reduced manipulation practices through discretionary accruals when executive compensation is increased.

Author Biographies

Allison Manoel de Sousa, Universidade Federal do Paraná (UFPR)

Doutorando em Contabilidade pela Universidade Federal do Paraná - UFPR (início em 2020) e Mestre em Contabilidade pela Universidade Federal de Santa Catarina - UFSC (2018 - 2020) e Graduado em Ciências Contábeis pela Universidade Federal da Grande Dourados - UFGD (2014 - 2018). Técnico em Contabilidade pelo Centro Paula Souza - CPS (2012 - 2013). Atualmente é membro do Laboratório de Contabilidade Financeira da UFPR (início em 2020). Já participou como membro do Núcleo de Estudos em Contabilidade e Controladoria da UFSC (2019-2020). Tem interesse na área de pesquisa em contabilidade para usuários externos, especialmente sobre os temas: auditoria, qualidade da informação contábil, remuneração dos executivos, contabilidade e macroeconomia, relevância das informações contábeis.

Alex Mussoi Ribeiro, Universidade Federal de Santa Catarina (UFSC)

Professor da Universidade Federal de Santa Catarina (UFSC) onde atua no Departamento de Contabilidade (CCN), no Programa de Pós Graduação em Contabilidade (PPGC), no Programa de Pós Graduação em Controle de Gestão (PPGCG) e Coordena o Mestrado Profissional em Propriedade Intelectual e Transferência de Tecnologia para a Inovação (PROFNIT). Possui graduação em Ciências Contábeis pela Universidade Federal do Rio Grande do Sul - UFRGS (2003), Especialização em Controladoria e Contabilidade pela Universidade Federal do Rio Grande do Sul - UFRGS (2007), MBA em Normas Internacionais pela Fundação Instituto de Pesquisas Contábeis, Atuariais e Financeiras - FIPECAFI (2013), Mestrado em Contabilidade e Controladoria pela Universidade Federal de Santa Catarina - UFSC (2009) e Doutorado em Controladoria e Contabilidade pela Universidade de São Paulo - USP (2014). Possui experiência na área de Contabilidade financeira - IFRS, Análise de Riscos e Crédito, M&A, Due-diligence, Avaliação de Empresas, modelagem financeira com o uso de estatística e reorganizações societárias. É um dos coordenadores do Núcleo de Estudos em Auditoria (NEAUD) e participante do Laboratório de Contabilidade Internacional da USP. Atua como perito contábil registrado no CNPC, possui Certificação em IFRS do Association of Chartered Certified Accountants - ACCA da Inglaterra e faz parte do Conselho fiscal da FEESC, do Comitê de Auditoria Estatutário da SCGÁS e do Comitê de Auditoria do Banco Regional de Desenvolvimento do Extremo Sul (BRDE).

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Published

2020-04-13

How to Cite

Sousa, A. M. de, & Ribeiro, A. M. (2020). Does CEO’s compensation mitigate discretionary accruals? An analysis of publicly traded Brazilian banks. Contextus - Contemporary Journal of Economics and Management, 18, 25–38. https://doi.org/10.19094/contextus.2020.42452

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Vol. 18: jan/dec 2020

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