The Brazilian common stock market reaction to corporations' performance
by Ademir Clemente; Marines Taffarel; Wesley Vieira Da Silva
International Journal of Accounting, Auditing and Performance Evaluation (IJAAPE), Vol. 8, No. 4, 2012

Abstract: This article aims to evaluate the capability of accounting-financial indicators to explain short run oscillations in the Brazilian common stock prices. This is an event study in which the date of disclosure of accounting information is used as reference. The approach is quantitative and uses multivariate statistical analysis. The sample consists of 24 companies chosen according to participation in the theoretical portfolio of the Sao Paulo Stock Exchange (Bovespa). Analysis is based on daily closing prices of common shares on different dates as dependent variables, and on 16 accounting-financial indicators as independent variables. The period of analysis extends from 1 January 1998 to 31 March 2008, a total of 41 quarters. A meaningful model is established for return of price 30 days after publication on quarter closing price. Such a model accounts for 29% of the variation contained in the dependent variable. Results indicate that accounting-financial indicators are actually important in explaining short run oscillations in the Brazilian common stock prices and confirm that accounting constitutes a valuable source of information for every stakeholder in the market, especially investors.

Online publication date: Wed, 30-Jul-2014

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Accounting, Auditing and Performance Evaluation (IJAAPE):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com