Anais
Resumo do trabalho
Finanças · Estrutura de Capital, Dividendos e Fusões e Aquisições
Título
The Disclosure of Information about Business Models and its Reflections on the Capital Structure of Companies in Brazil
Palavras-chave
Disclosure of Information
Business Models
Capital Structure
Autores
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Paulo César Barbosa AlvesUNIVERSIDADE PRESBITERIANA MACKENZIE (MACKENZIE)
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Wilson Toshiro NakamuraUNIVERSIDADE PRESBITERIANA MACKENZIE (MACKENZIE)
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Roberto Frota DecourtUNIVERSIDADE DO VALE DO RIO DOS SINOS (UNISINOS)
Resumo
Introdução
The business model (BM) encompasses strategic, organizational, and financial elements that are vital to understanding how a company creates, delivers, and captures value. As such, comprehensive disclosure of BM components serves as an effective mechanism for reducing informational asymmetry between managers and the market. In this context, the market value increased by voluntary disclosure would then be reflected in the capital structure of companies, as evidenced in the studies of: Rajan and Zingales (1995); Damodaran (2016); Bastos, Nakamura and Leonardo (2009).
Problema de Pesquisa e Objetivo
Do the BM's information disclosure indices reflect in formation of companies' capital structures in Brazil?
The objective of this research went to verify whether the disclosure of the business model (BM) reflect in formation capital structures in Brazilian companies.
The objective of this research went to verify whether the disclosure of the business model (BM) reflect in formation capital structures in Brazilian companies.
Fundamentação Teórica
Academic studies also consider that the disclosure of information allows shareholders to better evaluate their investments, thus reducing the cost of capital for companies. Companies disclose business model information voluntarily, which helps users of public information (financial or otherwise), financial analysts, to have a better understanding of the business model and how the company operates, such as its ability to create value. It was also found that voluntary disclosure is relevant to the formation of value, reflecting on the capital structure.
Metodologia
Through multiple linear regression analyses, we examine the behavior of disclosure indexes concerning the business model and their impact on cost of capital, company valuation and capital structure. Applied dependent variables Weighted Average Cost of Capital (WACC), Cost of Equity Capital (CCP), Market-to-Book (MTB) and Leverage (ALAV) were used to measure the capital costs, performance of the sample companies and capital structure of Companies with these being the dependent variables and variables of interest the indices that measure the quantity and quality of information on Business Model
Análise dos Resultados
The analysis of multiple linear regressions (Table 5) demonstrated that the disclosure of BM information contributes to the formation of the capital structure of companies, with the frequency of information contributing on average in percentage points to a reduction of -106.60 (fr) and the information quantity index -180.32 (iq2) of ALAV. The evidence suggests that the two indices (fr and iq2), together, contribute to a -286.92 percentage point reduction in ALAV, which averages 273.36%.
Conclusão
Our findings substantiate the hypotheses posited in this study, indicating that the disclosure of business model information not only reduces capital costs but also positively influences the overall value of companies, and in the capital structure of companies. In conclusion, this research underscores the importance of transparent disclosure practices regarding the business model, as it not only enhances market efficiency by mitigating information asymmetry but also contributes significantly to the value creation process within firms, reflecting on the structure capital of companies.
Contribuição / Impacto
Our findings align with the hypotheses posited, indicating that disclosing information on business models significantly contributes to the objective of this study and aligns with existing literature, that disclosing information about MN produces positive effects for reducing capital costs and mitigating information asymmetry between companies and investors, which together contribute to adding value to companies in the capital market, and in the formation capital structure companies in Brazil.
Referências Bibliográficas
PROTIN, Philippe; DECOURT, Roberto F.; ALVES, Paulo C. Barbosa. Le business model comme levier de communication financière des entreprises. Revue internationale d'intelligence économique, v. 10, n. 1, p. 61-84, 2018.
BASTOS, Douglas Dias; NAKAMURA, Wilson Toshiro; BASSO, Leonardo Fernando Cruz. Determinantes da estrutura de capital das companhias abertas na América Latina: um estudo empírico considerando fatores macroeconômicos e institucionais. RAM. Revista de Administração Mackenzie, v. 10, p. 47-77, 2009.
BASTOS, Douglas Dias; NAKAMURA, Wilson Toshiro; BASSO, Leonardo Fernando Cruz. Determinantes da estrutura de capital das companhias abertas na América Latina: um estudo empírico considerando fatores macroeconômicos e institucionais. RAM. Revista de Administração Mackenzie, v. 10, p. 47-77, 2009.