RISKS ASSUMED BY THE RATINGS AND RISKS ASSUMED BY BRAZILIAN OPEN CAPITAL COMPANIES

• Grant number: 17/15181-1
• Support Opportunities: Regular Research Grants
• Duration: May 01, 2018 - April 30, 2020
• Field of knowledge: Applied Social Sciences - Administration - Accounting
• Principal Investigator: Fabiano Guasti Lima
• Grantee: Fabiano Guasti Lima
• Host Institution: Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto (FEARP). Universidade de São Paulo (USP). Ribeirão Preto , SP, Brazil
• Associated researchers: Rafael Confetti Gatsios ; Rodrigo Lanna Franco da Silveira

Abstract

In the face of the latest global financial crises, ratings released by regulatory agencies have gained prominence in the financial market, mainly due to regulatory issues imposed by official mechanisms regarding their use for credit risk management in organizations. However, there are financial economic indicators that can be obtained in the financial statements of the companies that also inform the most varied types of risks that the company is exposed. Therefore, there is a research gap between the results of the ratings released by regulatory agencies and the perception of risk left by companies through their accounting and market indicators. The proposed methodology is descriptive, quantitative, characterized by ex post facto research. The analysis will be from 2010 to 2019 for Brazilian non-financial companies, with quarterly data, and this period was adopted due to the beginning of mandatory international accounting standards in Brazil, according to the International Financial Reporting Standards (IFRS). The model used will be by means of the logit model ordered in panel for the classification of the rating and also for the change of rating, as dependent variable and the other accounting and market as independent. It is hoped that this research can contribute to the improvement of the regulation with the risk management indicators of the organizations. Also, the generated model can be used for companies that are not classified by regulatory agencies and that can have a measure of risk through their financial and market variables. (AU)