Determining Factors of the Quality of the Financial Reporting of the Banking Companies Listed in Brazil Bolsa Balcão – B3

Abstract

This study aimed to analyze the determinants of the quality of accounting information of banks listed on B3. We measured the quality of accounting information through a set of 12 indicators built in the study of Gabriel and Silveira (2011). Subsequently, we used an econometric panel data model for a sample of 20 banks between 2014 and 2017. The results show that the banks audited by the big four have an audit committee, a lower indebtedness, and a lower ROE, reflecting a better quality of accounting information. These findings contribute to Brazilian inspection and regulatory bodies regarding the practices that may qualify the accounting information disclosed by banks to their investors. It also includes Brazilian banks in the empirical studies on the quality of accounting information.