POLITICAL CONNECTIONS AND ECONOMIC PERFORMANCE: A STUDY OF THE ELECTRICITY COMPANIES LISTED ON BRAZILIAN STOCK EXCHANGE (B3)

Authors

DOI:

https://doi.org/10.51320/rmc.v22i3.1273

Keywords:

Political connections, Boards of directors, Economic performance

Abstract

This research aimed to identify and describe the relationship between political connectivity and the
economic performance of electricity companies listed on Brazilian stock exchange (B3). We analyzed 26 companies whose data were collected in the set of financial statements and in the CVM’s Form-20F and in the historical prices on the B3 website, for the period between 2013 and 2018, using the quantile regression technique to analyze the relation between economic performance and political connectivity, current liquidity ratio, firm size, leverage and corporate governance firm level. As a result, it was possible to observe that the political connection by ownership presence shown to be significantly and positively related to economic performance, whereas insufficient evidence was found to prove that there is a relationship between economic performance and political connection measured through presence on the board of directors. This research contributes to minority investors to have a better perception of agency contractual relationships with the government by showing that there is a positive relationship between the economic performance measured by Tobin’s Q and the Market-to-book with political connectivity exercised through the presence of the government as a shareholder, controller or with significant influence.

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Author Biographies

Robson dos Santos Costa, Faculdade de Ciências Humanas de Olinda, FACHO, Brasil.

Mestre em Inovação e Desenvolvimento pelo Centro Universitário dos Guararapes

Juliana Gonçalves Araújo, Universidade de Pernambuco

Doutora em Administração pela Universidade Federal de Pernambuco

Rodrigo Vicente Prazeres, Professor Adjunto da Universidade Federal de Alagoas

Doutor em Contabilidade pela Universidade Federal de Pernambuco

João Gabriel Nascimento Araújo, Universidade Paulista, UNIP

Mestre em Ciências Contábeis pela Universidade Federal de Pernambuco

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Published

2021-12-20 — Updated on 2021-12-20

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How to Cite

Costa, R. dos S., Araújo, J. G., Prazeres, R. V., & Araújo, J. G. N. (2021). POLITICAL CONNECTIONS AND ECONOMIC PERFORMANCE: A STUDY OF THE ELECTRICITY COMPANIES LISTED ON BRAZILIAN STOCK EXCHANGE (B3). Revista Mineira De Contabilidade, 22(3), 7–20. https://doi.org/10.51320/rmc.v22i3.1273

Issue

Vol. 22 No. 3 (2021): 3º Quadrimestre de 2021

Section

Artigos científicos:

License

Copyright (c) 2021 Robson dos Santos Costa, Juliana Gonçalves Araújo, Rodrigo Vicente Prazeres, João Gabriel Nascimento Araújo

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