INSIDERS TRANSACTIONS AND THE IMPACT ON FIRM'S MARKET VALUE AND PROFITABILITY IN BRAZIL

This study aims to investigate if there is a relationship between the volume of buy and sell insider´s transactions of company´s shares and the market value or profitability of Brazilian companies listed on the Stock Market. The sample used in this study considers the availability of non-structured...

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Bibliographic Details
Published in:Revista de contabilidade e organizações 2016-01, Vol.10 (26)
Main Authors: Rogéria de Freitas Vasconcelos, Galdi, Fernando Caio, Danilo Soares Monte-Mor
Format: Article
Language:Portuguese
Subjects:
Scandals
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Summary:This study aims to investigate if there is a relationship between the volume of buy and sell insider´s transactions of company´s shares and the market value or profitability of Brazilian companies listed on the Stock Market. The sample used in this study considers the availability of non-structured data submitted by the companies to the Securities and Exchange Commission of Brazil, using the IPE-CMV system, and data obtained by Economática® system for the period between the first quarter of 2007 and the last quarter of 2011. The results show that greater the participation of insiders in transacted volume in the quarter, less the quarterly average of the market value of the company. Additionally, there is no evidence of significant relationship between the volume of transactions carried out by insiders and the profit of the company.
ISSN:1982-6486
DOI:10.11606/rco.v10i26.106048