Externally Financed Growth and Quality Accounting Information: Evidence From Brazil

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Author(s): Lineker Costa Passos (Federal Institute of Education, Science and Technology of the Piauí, Brazil & Federal University of Paraíba, Brazil)
Copyright: 2020
Pages: 16
Source title: Handbook of Research on Accounting and Financial Studies
Source Author(s)/Editor(s): Luís Farinha (University of Beira Interior, Portugal), Ana Baltazar Cruz (School of Management, Polytechnic Institute of Castelo Branco, Portugal)and João Renato Sebastião (Polytechnic Institute of Castelo Branco, Portugal)
DOI: 10.4018/978-1-7998-2136-6.ch017

Keywords: Accounting and Finance / Business & Management / Business Science Reference / Economics & Economic Theory

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Abstract

This study investigates the association between quality accounting information (QAI) and externally financed growth (EFG), taking a sample of 214 firms in Brazilian stock exchange from 1998 to 2015. EFG is estimated from the sales percentage approach to financial planning. QAI is estimated according to the accruals quality model proposed by Dechow and Dichev and modified by McNichols. The hypothesis that signaling efficient accounting information marginally influences and positively EFG is tested by multiple linear regression with estimation by OLS and could not be rejected. It is inferred that QAI is a significant attribute in contributing to the firm's access to the external financing channel. This study broadens the discussions about the themes in the Brazilian scenario, shedding light on the importance of the practice of the dissemination of quality information for the growth of firms in the Brazilian context.

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Externally Financed Growth and Quality Accounting Information: Evidence From Brazil

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