Delisting of Brazilian Companies: a forecasting model for the period from 2013 to 2018

Authors

  • Matheus Moreira Federal University of Santa Catarina
  • Leonardo Flach Federal University of Santa Catarina
  • Jonatas Dutra Sallaberry Universidad de Múrcia, Universidade Federal de Santa Catarina

DOI:

https://doi.org/10.17524/repec.v16i1.2591

Keywords:

Delisting; Capital delisting; Cancellation of Registration.

Abstract

Objective: The objective of this article is to identify which are the main accounting variables that explain the delisting decision. The decision to close capital has aroused the interest of recent international research, and it was a topic rarely addressed.
Method: The survey uses data from companies traded on B3, focusing on the analysis of 126 record cancellations between 2013 and 2018, with separation between groups and application of logistic regression to analyze the forecast of the closing event.
Results: The results allow to perceive as main characteristics of the companies that went public: (i) greater cash availability; (ii) lower growth; (iii) less liquidity; (iv) greater concentration of ownership; and (v) larger size, consistent with previous studies. The main accounting variables related to delisting are (i) lower growth, (ii) greater cash availability, and (iii) greater concentration of control.
Contributions: The results contribute to the advancement of the modeling employed by Bortolon and Silva Junior (2015), reaching a sensitivity of 100% in cases of delisting. The application of modeling can allow investors to identify the moment when a company tends to close capital.

   

Author Biographies

Matheus Moreira, Federal University of Santa Catarina

Bachelor in Accounting from the Federal University of Santa Catarina

 

Leonardo Flach, Federal University of Santa Catarina

Post-doctorate in Accounting and Finance at Massachusetts Institute of Technology (MIT / USA). He has been Visiting Scholar at the Massachusetts Institute of Technology (MIT / USA) (voted the World’s Best University by the Times Higher Education Ranking) and at the Ludwig Maximilians Universität München (LMU-Munich-Germany – Best German University, according to the Best Global Universities US News Ranking). Full Professor in Accounting at the Federal University of Santa Catarina, where he entered as the first place in the competition for an effective professor. Ph.D. in Administration (UFRGS), with a sandwich doctorate program at Freie Universität Berlin (Germany). ORCID https://orcid.org/0000-0002-4316-0704, http://lattes.cnpq.br/8428386728078124. Email: leonardo.flach@gmail.com

   

Jonatas Dutra Sallaberry, Universidad de Múrcia, Universidade Federal de Santa Catarina

PhD Student in Accounting from the Federal University of Santa Catarina and Universidad de Murcia (ESP), Master in Accounting Sciences from the Multi-Institutional and Interregional Graduate Program in Accounting UnB / UFPB / UFRN, Specialist in Government Auditing and Bachelor in Accounting by the Federal University of Rio Grande do Sul. Accounting expert at the Federal Public Ministry, instructor at the Superior School of the Federal Public Ministry and university professor at Faculdade UnyLeya. Author and reviewer of journal articles and events. BASIS evaluator and BNI developer (INEP-MEC).

 

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Published

2022-04-23

How to Cite

Moreira, M., Flach, L., & Dutra Sallaberry, J. (2022). Delisting of Brazilian Companies: a forecasting model for the period from 2013 to 2018. Journal of Education and Research in Accounting (REPeC), 16(1). https://doi.org/10.17524/repec.v16i1.2591

Issue

Vol. 16 No. 1 (2022): Jan - Mar

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Articles

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