CONEXÕES POLÍTICAS NAS MAIORES COMPANHIAS LISTADAS NA BM&amp;FBOVESPA

Pinheiro, Bruno Goes; Luca, Márcia Márcia Martins Mendes De; Vasconcelos, Alessandra Carvalho de

doi:10.1590/1413-2311.1622015.60360

Cited by 9 publications

(12 citation statements)

References 36 publications

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“…Political connections, according to Camilo et al (2012), may be characterized as relationships between political agents and companies, in which both seek to further their common interests. Thus, political connections are a practice that companies that depend on financial resources use to attain their objectives, seeking to expand their ties with politicians, who in turn are interested in the funding of their electoral campaigns (Pinheiro, Luca, & Vasconcelos, 2016). During recent decades, even though democracy and the economic system have evolved, mainly because of control mechanisms and the publication of public and private acts (Bazuchi et al, 2013), organizations need to diminish the uncertainties they face and increase their revenues to remain competitive, and thus they often use political connections to strengthen their ties to public agents (Brey, Camilo, Marcon, & Alberton, 2011).…”

Section: Theoretical Referencesmentioning

confidence: 99%

“…They found that political connections are perceived by these analysts because of information published by the media in general, and that these connections influence the choice of maintaining or not maintaining a company with political connections in their investment portfolios. Pinheiro et al (2016) proposed analyzing the relationship between firms listed on the Bovespa Stock Exchange and political connections through their performance, and they found that there is no distinction in terms of performance when comparing firms with or without political connections.…”

Section: Theoretical Referencesmentioning

confidence: 99%

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Corporate electoral donations and tax aggressiveness

Martinez

Telles

Chiachio

2019

RAUSP

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Purpose The purpose of this paper is to investigate whether companies that donate to winning electoral campaigns are more aggressive in terms of tax planning than companies that do not make these contributions. The relationship between politicians and companies may be signaled by political connections in which companies try to get political benefits in exchange for providing politicians with campaign financing. The hypothesis is that a quid pro quo occurs in which these companies benefit from favorable tax treatment that reduces their relative tax burden. Design/methodology/approach The focus of this study is donations that were made in the presidential elections of 2010 and 2014. The sample covers the period between 2010 and 2016 for companies listed on the B3 Stock Exchange, using proxies for tax aggressiveness computed based on value-added reporting. Through linear regressions, the authors have tested whether the companies that made these campaign contributions tend to have a lower tax burden. Findings The proposed hypothesis was confirmed, revealing that a political connection between campaign donations reduces the tax burden for donating companies during the years following the election. These donations appear to depict an environment characterized by an exchange of favors in which the donating companies exhibit greater tax aggressiveness than non-donating companies. Originality/value The current study deals with a subject that has not yet been examined empirically in Brazil and reinforces the position adopted by the Supreme Court in prohibiting campaign donations to inhibit quid pro quo practices. The study offers additional arguments for the criminalization of the so-called “second set of books” used to record electoral campaign contributions.

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Section: Theoretical Referencesmentioning

confidence: 99%

Section: Theoretical Referencesmentioning

confidence: 99%

Corporate electoral donations and tax aggressiveness

Martinez

Telles

Chiachio

2019

RAUSP

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“…The second explanation offered by Chaney et al (2010) refers to the strength of the political connection that may provide a certain level of protection for connected firms, which would be exempt from punishment by inspection bodies and, thus, unconcerned about achieving better levels of QAI. In Brazil, this phenomenon was observed by Pinheiro et al (2016), who stated that political and democratic stability could discourage the harm caused by political connections by generating more costs than benefits. However, the authors observed that in developing economies, due to the difficulty in raising funds and reducing risks and uncertainties, firms may seek political connections as a solution.…”

Section: Introductionmentioning

confidence: 97%

Timely loss recognition in Brazilian firms under corruption investigation

Rocha

Bezerra

2021

Rev. contab. finanç.

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This article evaluates the impact of the disclosure of the participation of Brazilian firms listed on the Bolsa Brasil Balcão (B3) in corruption scandals through media scrutiny and by disclosure of independent auditors on the quality of accounting information, measured from the perspective of accounting conservatism. We examine the possible theoretical link between the disclosure of corruption scandals and the quality of accounting information in the Brazilian context. Brazil has gone through successive corruption scandals involving firms and government entities in different levels. Accounting can be an important tool to mitigate said risks based on the artifacts it has to inform key stakeholders. However, it is necessary to identify the extent to which these artifacts can be influenced by the actors involved in these scandals. The research places accounting as an instrument subject to pressures from different interests and that may be shaped to them. Although accounting is an instrument that must aim to reduce information asymmetry, preventing the harmful effects of corruption, in specific contexts, it can be used in the opposite direction, such as in cases of corruption and economic crises. We used the model based on Ball and Shivakumar (2005) with specific modeling characteristics for corruption and crisis. The models were estimated using the Stata 13 software using the pooled approach using the Ordinary Least Squares (OLS) estimation method, clustered by year and economic sector, and the Generalized Least Squares (GSL) estimator. The results point to the presence of conservatism when disclosing involvement in investigations of corruption crimes in Brazil. This behavior was less intense in firms effectively mentioned in these events. These results highlight the relevance of studies aimed at clarifying the connections between corruption and accounting reports, enabling the development of measures to curb corruption in the business environment.

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“…Political connections occur through relations between companies and politicians and both of them aim their own interests (Pinheiro, Luca, & Vasconcelos, 2016). The companies, because of their dependence on resources, seek, through the signing of political ties, to satisfy their interests while protecting themselves from adverse scenarios that may modify the political connection established.…”

Section: Introductionmentioning

confidence: 99%

“…In the academic milieu, the political connection theme has been the recent target of several studies that have approached its relation with different variables, such as performance (Pinheiro et al, 2016), market value (Camilo, Marcon, & Bandeira-de-Mello, 2012b), analysts' perception (Macedo et al, 2015); property structure (Brey, Camilo, Marcon, & Alberton, 2011).…”

Section: Introductionmentioning

confidence: 99%

Influence of political connections on the disclosure of social and environmental information

Koprowski¹,

Nardi²,

Rizzi³

et al. 2019

CGG

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Objective: To analyze the influence of political connections on the disclosure of social and environmental information. Method: The survey sample is composed of 370 companies listed on B3. To determine the level of socio-environmental disclosure, the sustainability reports for 2016 were analyzed, based on the guidelines of the Integrated Report (IR). As for the political connections, the existence of political or government shareholding in companies was analyzed, as well as the donations made by the companies to the electoral campaigns, both in 2014. Originality / Relevance: The discussion in the national academic environment about the reflexes caused by the connections established between companies and government, especially considering the socio-environmental disclosure as the affected side, is still incipient. Results: The results do not allow to assess the real effect of the political connections on the socio-environmental disclosure index, but there are indications of a negative influence in this scope. The influence of size, company participation in the ISE portfolio and the company's performance in a regulated segment, on the level of social and environmental disclosure, are explained by the Theory of Legitimacy. Theoretical/methodological contributions: There are indications that, in Brazil, the effect of political connections on socioenvironmental disclosure may be negative, due to the weak institutional environment, with deficient rules and regulations. It is important to pass on this information, given the growing economic, social and environmental impact of companies in the region in which they operate and in society.

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CONEXÕES POLÍTICAS NAS MAIORES COMPANHIAS LISTADAS NA BM&FBOVESPA

Cited by 9 publications

References 36 publications

Corporate electoral donations and tax aggressiveness

Corporate electoral donations and tax aggressiveness

Timely loss recognition in Brazilian firms under corruption investigation

Influence of political connections on the disclosure of social and environmental information

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