Discretionary-based disclosure: Evidence from the Brazilian market

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Fernando Dal-Ri Murcia
Ariovaldo dos Santos


The primary objective of this paper is to identify the factors that explain Brazilian companies level of voluntary disclosure. Underpinning this work is the Discretionary-based Disclosure theory. The sample is composed of the top 100 largest non-financial companies listed in the Bolsa de Valores de São Paulo (Brazilian Securities, Commodities, and Futures exchange - BOVESPA). Information was gathered from Financial Statements for the years ending in 2006, 2007, and 2008, with the use of content analysis. A disclosure framework based on 27 studies from these years was created, with a total of 92 voluntary items divided into two dimensions: economic (43) and socio-environmental (49). Based on the existing literature, a total of 12 hypotheses were elaborated and tested using a panel data approach. Results evidence that: (a) Sector and Origin of Control are statistically significant in all three models tested: economic, socio-environmental, and total; (b) Profitability is relevant in the economic model and in the total model; (c) Tobins Q is relevant in the socio-environmental model and in the total disclosure model; (d) Leverage and Auditing Firm are only relevant in the economic disclosure model; (e) SizeGovernanceStock IssuingGrowth Opportunities and Concentration of Control are not statistically significant in any of the three models.


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Murcia, F. D.-R., & Santos, A. dos. (2011). Discretionary-based disclosure: Evidence from the Brazilian market. Brazilian Administration Review, 9(1), 88-109. https://doi.org/10.1590/S1807-76922012000100006

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