Comparability of accounting choices in the statement of cash flow: Evidence from Brazil
| Autor: | Felipe Menezes Nunes, Sirlei Lemes, Aline Fernandes Pinto, Patrícia de Souza Costa |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
Net profit
050208 finance Actuarial science business.industry Matching principle 05 social sciences Accounting 050201 accounting General Business Management and Accounting Net interest income Interest expense Operating cash flow 0502 economics and business Accounting information system Economics Cash flow Cash flow statement business |
| Zdroj: | Contaduría y Administración. 64:107 |
| ISSN: | 2448-8410 0186-1042 |
| DOI: | 10.22201/fca.24488410e.2018.1445 |
| Popis: | Our objective was to determine comparability levels among the accounting choices in the Statements of Cash Flows (SCF) of Brazilian public companies and to discover factors that could explain these choices. Accounting choices were analyzed for the disclosure of the following SCF items: interest expense, interest income, income tax and social contribution on net profits, dividends, interest on own capital received, dividends and interest on own capital paid. The Herfindahl index (H index) was used to calculate comparability and logistic regression to identify variables that could affect the classification of SCF items. We found high levels of comparability for the classification of interest income, moderate for dividends and interest on own capital paid and low for the interest expense, income tax and social contribution, dividends and interest on own capital received. The H index was low in 2010 but increased gradually over time, suggesting improvements in the quality of accounting information. We also found evidence that the size of the Brazilian public company, indebtedness, profitability, book-to-market, and negative operating cash flows affected the choice of item classification in SCF. These results may be useful for accounting choice theory since they suggest that Brazilian listed companies use accounting choices to manage cash flows. |
| Databáze: | OpenAIRE |
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