Financial performance and stock values in a context of regulatory change: the case of the brazilian electric sector

• Published in: Revista Catarinense da Ciência Contábil 2020-03, Vol.19, p.e2891-e2891
• Main Authors: Marcos Lima Bandeira, Paulo Augusto Pettenuzzo de Britto
• Format: Article
• Language: English
• Subjects: desempenho econômico-financeiro; mercado de capitais; regulação econômica; setor elétrico brasileiro
• ISSN: 1808-3781; 2237-7662
• DOI: 10.16930/2237-766220202891

The objective of this study is to analyze the degree of relationship between economic-financial performance and the value of the stocks of companies in the Brazilian electric sector in the capital market, together with the effects of the economic regulation provided by Provisional Measure No. 579/2012. The theme of this work can be considered relevant as it analyzes aspects of economic regulation and economic-financial performance of an important segment of the Brazilian economy, essential for the country’s economic and social development. The results aim to contribute to the advancement of empirical studies that examine the behavior of the stock market, based on information provided by companies and those available in the market, from firms in regulated segments. The methodological procedures involve a panel econometric regression model comprising 29 concessionaires and permissions electric energy companies listed on the São Paulo Stock Exchange (B3) between 2009 and 2016. Regarding the market value of the shares of the electricity companies, the results indicated a negative association with the provisional measure, positive with the ratio between the Current Liquidity Index and negative with the Indebtedness Ratio. The results indicate that the pricing strategy of investors in regulated companies considers effects of regulatory interventions together with typical market variables.