Conventional cost accounting assumes that the relation between cost and volume is symmetric for volume increases and decreases. We test an alternative model where costs increase more when activity rises than they decrease when activity falls by an equivalent amount. We find, for a sample of...

We analyze the role of institutional investors as providers of long-term capital resources in the Brazilian capital market. Since there is virtually only one provider of long-term financing in Brazil, BNDES - the National Bank for Economic and Social Development, and the fact that the domestic...

We investigate the empirical relationship between stock returns, return volatility and trading volume using data from the Brazilian stock market (Bovespa). Our sample contains stock return and trading volume data from a theoretical portfolio including stocks participating in the Bovespa Index...

We seek for verification and explanation of arbitrage between securities of dual-listed Brazilian-based companies which are simultaneously traded on the Brazilian and the US stock markets. Following the extant literature, our underlying hypothesis is that arbitrage events can be explained by...

Previous studies have shown that financial accounting information produce economic effects, as a result of its role in reducing information asymmetry in capital markets. Recent theories sustain that the level of value-relevance of a country's accounting information is directly related to...

The paper makes use of an event study to test the Efficient Market Hypothesis and its variant, the Uncertain Information Hypothesis, for the Brazilian stock market. Previous literature has associated inefficiencies generated by thin markets with investor overreaction or underreaction, thereby...

Recent studies have shown the existence of a relationship between the disclosure of accounting information and economic effects. The disclosure of value-relevant accounting information reduces the information asymmetry on the market and, consequently, the risk of investors making mistakes in...

The paper tests if the theory known as Pecking Order Theory provides empirical explanation for the capital structure of Brazilian firms. According to this theory, the capital structures would result from a hierarchy of financial decisions where internally generated resources would have first...

The paper documents the specification and estimation of an econometric model of the Brazilian stock market (Bovespa) using a GARCH(1,1) model. We used quarterly data for an estimation period spanning from January 1995 to December 2003. The empirical results show that GDP growth, exchange-rate...

The paper reports the result of empirical tests on the validity of Fleuriet's model, also known in Brazil as Advanced or Dynamic Working Capital Analysis. According to some authors, the model, which was introduced in Brazil in the 80's, brought important innovations to working capital analysis...