Revista Contabilidade & Finanças (RC&F) is an open access journal, free of charges for authors and readers, published every four months and held by the Department of Accounting and Actuarial Sciences at the University of São Paulo School of Economics, Business Administration and Accounting. Under its previous name Caderno de Estudos, the journal has been published since 1989, with financial support from FIPECAFI – Foundation Institute for Accounting, Actuarial and Financial Research. The journal has been concomitantly published online in English. RC&F has the mission of disseminating original, unpublished and relevant scientific output in the area of Accounting, Auditing, Actuarial Sciences and Finance, produced by academics, researchers, students and professionals within Brazil and outside it, selected exclusively on the basis of quality and effective contribution to the development of scientific knowledge in these fields. Objectives The principal objectives of RC&F are: - Disseminating relevant knowledge in the areas of Accounting, Auditing, Actuarial Sciences and Finance; - Encouraging and provoking reflections on relevant themes for the area, the academic community and society; and - Achieving national and international recognition as a means of communicating research studies. Updated: 01/05/2023
Universidade de São Paulo. Faculdade de Economia, Administração, Contabilidade e Atuária
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Erratum of “The impact of information asymmetry on the capital structure of listed companies in Brazil: An update of the literature, models, and results”
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Remuneration governance in the world’s most unequal country: Current developments and future research opportunities
COVID-19 mortality: Impact on benefits for retirees in a state pension plan
This article sought to analyze the impacts of mortality by COVID-19 pandemic on the retirement benefits and pensions of retirees in a Special Social Security System. The study addresses a gap in the literature regarding the impact of COVID-19 on the social security obligations of retirees in the Brazilian public sector, specifically within the system. For the financial equilibrium of a pension plan, it is evident that the impact of the pandemic on the actuarial “mortality” assumption must be considered, given its influence on pension obligations related to the payment of retirement benefits and pensions. The change in mortality tables, in scenarios where COVID-19 is not considered a cause of death, resulted in an average increase of 4.66% in the present value of future benefits (PVFB) and 4.64% in the mathematical provision (MP) for retirement benefits, as well as an average reduction of 3.58% in the NPB and 3.64% in the MP for death pensions between 2020 and 2022. Using the multiple-decrement model, mortality tables were constructed, including (Scenario 1) and excluding deaths from COVID-19 (Scenario 2). The probabilities of death derived from these tables were applied in the calculation of the plan’s actuarial liabilities for retired civil servants (retirement benefits and pensions) under the system. Next, VPBF and PM results for benefits granted during the pandemic period (2020–2022) were compared across the different scenarios. When COVID-19 was excluded as a cause of death, the probabilities of death and pension liabilities were lower in all the years analyzed. The study of mortality by specific causes, though still recent, contributes to actuarial work by quantifying its impact through the application of the results to a real-world database of a Special Social Security System.
Prudential management of Brazilian banks: Key variables under Basel III
This study examines the determinants of capital adequacy in Brazilian commercial banks, focusing on how internal performance indicators from the CAMELS (capital adequacy, asset quality, management quality, earnings, liquidity, and sensitivity to market risk) framework and macroeconomic conditions shape prudential capital buffers under Basel III. Although capital regulation plays a central role in emerging economies, the literature offers limited evidence on the joint influence of CAMELS dimensions and macroeconomic factors on banks’ excess capital positions. Moreover, few studies explicitly address the dynamic and endogenous nature of prudential capital adjustment, particularly in the Brazilian context. Understanding the drivers of banks’ capital buffers provides insights into the effectiveness of Basel III in strengthening financial resilience and informs regulatory debates in developing economies. Quarterly panel data from 15 Brazilian commercial banks from 2018 to 2024 are analyzed using traditional panel estimators and dynamic approaches based on difference and system generalized method of moments, allowing for endogeneity, persistence, and intertemporal adjustment. The dependent variable is defined as the difference between the observed capital adequacy ratio and the regulatory minimum. The results indicate that asset quality and profitability positively affect capital buffers, while leverage and inflation exert robust negative effects. Other factors, including liquidity, market risk sensitivity, bank size, and economic growth, display specification-sensitive results, highlighting the role of dynamic adjustment and feedback effects. Overall, capital buffers reflect a prudential and dynamic process rather than purely contemporaneous decisions. The findings contribute to the prudential regulation literature and provide insights for regulators and bank managers regarding risk-based supervision and capital planning in emerging economies.
Multi-year capital requirements in life insurance: A stochastic mortality-based evaluation
This research aims to assess solvency capital for life insurance companies beyond the 1-year horizon, with a focus on the Brazilian Capital Framework (BCF) and Solvency II (SII), through a stochastic model using Monte Carlo simulations. Most capital frameworks apply 1-year horizons, disregarding future capital needs arising from the evolution of longevity and mortality risk, particularly under different interest rate regimes. This study incorporates a stochastic multi-year approach to bridge this oversight. By addressing long-term solvency and exploiting stochastic mortality models, this study enhances the understanding of future capital requirements and the importance of robust long-term risk management in life insurance. The findings contribute to advancing regulatory frameworks and improving the financial sustainability of the life insurance sector, particularly in preparing for extreme scenarios such as pandemics or longevity improvements. The study employs deterministic and stochastic mortality models, utilizing Monte Carlo simulations to evaluate the requirements of capital need in a multi-year horizon. It calculates capital requirements for traditional life insurance products under various scenarios, offering a comparative analysis. This study reveals that current regulatory frameworks, such as SII and the BCF, should consider extending their 1-year horizon to incorporate future capital needs not fully captured by short-term perspectives. It evaluates the capital requirement under SII and BCF using a hypothetical portfolio of 10,000 male participants for traditional life insurance products (term-life, endowment, and whole-life). Findings indicate that while it is broadly understood that lower interest rates tend to increase capital requirements, our results provide a quantitative assessment of this effect under the BCF and SII. By applying multi-year stochastic simulations, we demonstrate how changes in the interest rate environment can shift the timing and magnitude of required capital, underscoring the relevance of long-term solvency projections in regulatory analysis.
Effects of the enabling characteristics of budgetary control
This study evaluates the effects of the enabling characteristics of budgetary control on managerial performance and budget goal commitment. The findings contribute to the literature by addressing an important theoretical gap concerning the specific effects of enabling characteristics of budgetary control on managers’ commitment to established budgetary targets and their consequent effects on managerial performance, while revealing how such practices influence these managerial attitudes. The enabling budgetary approach provides managers with greater flexibility and autonomy in organizational processes; therefore, it is relevant to understand how these characteristics influence attitudes related to managers’ commitment to established budgetary targets and the consequences for their performance. The results indicate that this does not occur uniformly, which provides an explanation to the field of study and reveals that the enabling approach enhances the acceptance of and commitment by managers with budgetary responsibility to organizational objectives, targets, and desired results. Managers with higher budget goal commitment are more likely to elevate their managerial performance. The findings indicate the conditions under which the adoption of such budgetary control structures positively reflects on budget goal commitment and managerial performance. This is a descriptive, survey-based (single entity survey) quantitative study conducted with 91 middle-level managers with budgetary responsibility. Structural equation modeling was used to test the hypotheses. The results add new evidence on the enabling characteristics of budgetary control, reveal that flexibility in the budgetary process has positive effects on achieving higher levels of managerial performance, and indicate that internal transparency acts by promoting managers’ commitment to reaching budgetary targets, which positively reflects on managerial performance. The findings also suggest that individuals in positions closer to senior management are more likely to perceive the enabling characteristics, and that the level of budget use for performance evaluation enhances budget goal commitment.
Does tax avoidance increase informational asymmetry? Evidence from the Tax Cuts and Jobs Act (TCJA)
This article aims to examine whether corporate tax avoidance increases informational asymmetry. Specifically, we examine how the 2017 Tax Cuts and Jobs Act (TCJA) decreased tax avoidance incentives and, as a consequence, reduced firms’ informational asymmetry. Previous studies offer limited causal evidence on how tax avoidance, transparency, and informational asymmetry interact under major tax reforms such as the TCJA. The study advances the understanding of how tax strategy decisions influence capital-market transparency and the incorporation of firm-specific information into prices. It offers insights to scholars, policymakers, and investors concerned with governance and financial reporting quality. The findings inform policymakers about the potential of tax reforms – particularly tax reductions and provisions aimed at improving information efficiency. They also highlight that curbing tax avoidance enhances corporate transparency. A difference-in-differences (DiD) design exploits the TCJA as an exogenous shock, comparing U.S. multinationals with subsidiaries in tax havens (less affected) to those with subsidiaries in high-tax jurisdictions (more affected). Stock price synchronicity, which measures the co-movement of individual stock prices with the Standard & Poor’s 500, serves as a proxy for informational asymmetry. This study shows that a reduction in firms’ tax avoidance practices decreases informational asymmetry for investors. Using the TCJA as an exogenous shock that lowered incentives for tax avoidance, we document that U.S. stock price synchronicity (our measure of informational asymmetry) declined after the TCJA for U.S. multinationals, but significantly less for multinationals with subsidiaries in tax havens. These findings provide causal evidence that tax avoidance impairs investors’ ability to incorporate firm-specific information into stock prices.
Political connections and the characteristics of the audit committee on the audit quality
The goal of this study is to analyze the influence of political connections and the characteristics of the audit committee on the audit quality, as measured by the fees paid to auditors. Although the international literature explores political and auditing connections, there is a lack of studies that address the role of the audit committee as a governance mechanism in the Brazilian context, especially considering its non-mandatory nature for all companies. There is a lack of research investigating how the composition and functioning of this committee, in environments of political influence, affect financial supervision and risk mitigation. The discussion is relevant due to the little evidence on the impact of political connections on auditors independence and financial transparency in Brazil. Understanding these effects is key to improving governance practices and reducing the use of political connections as assets to obtain government benefits. The findings indicate that larger, independent and active committees strengthen oversight, reduce fraud and increase transparency. The results support companies and policymakers in the search for more robust governance. This study is descriptive and documentary, with an unbalanced data panel of 153 public listed Brazilian companies on B3 S.A. – Brasil, Bolsa, Balcão from 2016 to 2023. The study indicates that political connections in the audit committee reduce the quality of auditing in Brazil, in contrast to part of the international literature. Conversely, larger, more independent committees with frequent meetings improve the quality of audits and strengthen governance. Female participation and financial expertise of members are related to lower audit fees. The results highlight the importance of an adequate and efficient composition of the auditing committees.
A decision support system for hedge transactions in electrical energy commercialization
This article proposes an optimization model that maximizes the agent’s returns subject to a risk preference function to support the hedging decision. The originality lies in the development of a commercialization decision support model that maximizes the agent’s profits, customized to a desired level of risk protection, which is a gap in the literature. As this model is tailored to the agent’s individual risk aversion rather than the market as a whole, this model assists in defining, in a personalized manner, the optimal hedging strategy given the agent’s specific risk preferences. It assists the hedging decision maker in selecting the optimal purchasing strategy based on the level of risk the firm is willing to accept. We assume that the agent has an aversion to risk and adopt a preference function, considering their willingness to pay the risk premium and the transaction cost. The case of an agent in the Brazilian electricity sector interested in defining a hedging strategy for the 2nd semester is analyzed. In their day-to-day business, agents in the electricity sector may find themselves in a short position in the market. To mitigate their exposure to this risk, they have the option of entering into fixed-price forward contracts, either partially or in full. This study contributes to the development of an original decision support tool for these agents, considering their willingness to pay the risk premium and transaction costs. In our numerical application, results suggest covering 45.3% of uncontracted amounts in the 2nd semester. However, if the decision is made quarterly, a 100% hedge is recommended for the 3rd quarter and no hedge for the 4th. Sensitivity analyses are performed to show how the level of risk aversion impacts this decision.
Impact of Key Audit Matters and the auditor’s opinion on the decisions of non-institutional investors
This study investigates the impact of the adoption of the Brazilian Accounting Standard – Auditing Standard 701, specifically Key Audit Matters (KAMs), and the auditor’s qualified opinion on the investment decisions of Brazilian non-institutional investors. The research fills a gap in the literature by applying an experimental methodology to assess the effects of KAMs on the judgment and decision-making of non-institutional investors, a group that has become increasingly significant in the Brazilian capital market and remains underexplored in national empirical studies. The introduction of KAMs in 2017 aimed to increase the transparency of audit reports. Evaluating their effectiveness among non-institutional investors is essential to understand whether this information is assimilated and considered in their investment decisions. The study contributes to the debate on the importance of the informational content of the auditor’s report, offering relevant insights for regulators, investors, auditors, and other stakeholders. An experiment was conducted using a 2 × 2 between-subjects design, manipulating KAMs (presence vs. absence) and the auditor’s opinion (unqualified vs. qualified). The sample consisted of 112 non-institutional investors, collected online from July 2023 to January 2024. The analysis involved descriptive statistics, tests of differences between means/medians, and analysis of variance. The results did not show a statistically significant impact of KAMs (either in isolation or combined with a qualified opinion) on the investment decisions of Brazilian non-institutional investors. The study contributes by demonstrating that the effectiveness of KAMs depends on the disclosure context and the interpretive capacity of investors, as well as their interaction with other sections of the report. The findings highlight the need for standardization, clarity, and education to maximize the usefulness of Independent Auditor’s Reports.
Market value and tax litigation in Brazilian companies
This article aimed to examine the effect of tax provisions and contingent liabilities on the market value of companies and to identify the factors influencing the degree of tax litigation. Previous research has focused on disclosure and accounting compliance indices. However, there is a scarcity of studies analyzing the impact of tax litigation on the market value of companies, its main causes, and its determinants. Tax litigation is a topic of interest on the Organisation for Economic Co-operation and Development agenda, and Brazil has one of the highest rates in the world. The Securities and Exchange Commission of Brazil (Comissão de Valores Mobiliários) has also addressed the issue by encouraging the disclosure of tax liabilities. This research is both academically and practically relevant, as it provides evidence of the impact of tax litigation on market value and demonstrates the possibility of accounting classification management using a single database. This study highlights the main causes of tax litigation and their impact on market value. It also shows that tax litigation can be used as an earnings management mechanism, affecting companies and their stakeholders. Data were collected from reference forms and explanatory notes from companies (2015-2020) to create a comprehensive database. Regression models analyze the effects of tax litigation on market value and its determinants using panel data. The results indicate that tax litigation negatively impacts the market value of companies. Organizations tend to classify tax litigation as contingencies rather than provisioning it as a liability, particularly in the beverage, telecommunications, metallurgy, and oil and gas industries. The main causes of tax litigation are the deductibility of goodwill and the taxation of foreign profits. The degree of litigation is determined by tax burden, value added going to the government, existence of losses, and sector of activity. These findings contribute to the existing literature and suggest the possibility of management in the classification between provisions and contingent liabilities.
Evaluation of the Special Tax Recovery Program of the Federal Revenue Service of Brazil
This article aimed to assess the extent to which the Special Tax Recovery Program (PERT), established by the Federal Revenue Service of Brazil in 2017, contributed to the recovery of tax debts among participating taxpayers. Despite the widespread use of tax installment programs, there are no clear criteria for evaluating their effectiveness, nor systematic evidence of their economic effects, as official analyses generally focus only on the amounts collected. This gap, compounded by the scarcity of studies employing rigorous empirical designs, limits the understanding of the impacts of such programs. The study seeks to address this gap by strengthening evidence-based public policies. Given the complexity of the Brazilian tax system, the topic is particularly timely and relevant. The main innovative contribution of this research lies in combining microdata from the Federal Revenue Service of Brazil with a quasi-experimental approach, thereby enabling the results to support decision-making on the continuation of PERT or the design of new tax installment programs. The findings have practical implications for the design and evaluation of policies aimed at recovering tax credits. The study covered 66,075 taxpayers, ensuring representativeness and reliability in the collection of information. Using a difference-in-differences approach, comparing a treatment group (PERT participants) with a control group (non-participants), the research evaluates the tax recovery of these taxpayers between 2017 and 2021. The results indicate that PERT had a positive effect on the evolution of tax compliance among participating taxpayers, with an average difference of 4.17 percentage points in favor of participants compared with non-participants, thereby contributing to the recovery of tax debts. Differences were also observed according to socioeconomic characteristics, with higher compliance among younger firms and certain economic sectors showing higher levels of compliance within the special program.
Accounting for artisanal fishing as a situated, oral, and ancestral practice
This article aims to understand how accounting practices are socially constituted and mobilized in the daily lives of artisanal fishermen on Marajó Island. Accounting literature tends to marginalize knowledge originating from outside institutionalized spaces, particularly knowledge linked to oral tradition, ancestry, and traditional territories. Research on accounting practices in Amazonian contexts is scarce, which hinders the recognition of plural rationalities and limits epistemological advances in the field. This study broadens the epistemological scope of accounting by valuing historically marginalized knowledge. By demonstrating how traditional communities organize their productive activities based on their own management principles, the study contributes to recognizing legitimate forms of accounting practice that remain largely invisible, particularly in peripheral contexts. The article provides a framework for rethinking accounting on pluralistic bases and proposes including local epistemologies in research, professional training, and curriculum development. Thus, it contributes to critiquing rational-instrumental hegemony and strengthening accounting practices sensitive to territories and communities. The study employed a qualitative methodology based on oral history as a research strategy and content analysis as an analytical technique. Data were collected through interviews with artisanal fishermen from Marajó Island, respecting their ways of life, languages, and forms of knowledge transmission. Two analytical categories were identified: accounting as empirical and adaptive knowledge and accounting as ancestral knowledge. The fishermen use their own accounting knowledge, which is linked to oral tradition, experience, and community life. This knowledge fulfills the functions of controlling, planning, and organizing fishing activities. These practices adapt dynamically to context; for example, the rhythm of the tides structures catch schedules. The findings suggest situated accounting, which has a structure that differs from that provided by normative models. Situated accounting articulates empirical and contextual knowledge with everyday management. This study contributes to the debate on decolonizing accounting by recognizing legitimate forms of management in community contexts.
Mergers and acquisitions and accounting information quality: An analysis of enforcement in G20 countries
The aim of this research was to analyze the impact of enforcement on the relationship between cross-border and domestic mergers and acquisitions (M&As) involving highly indebted targets and the earnings management of acquiring companies in G20 countries from 2010 to 2022. This study fills a gap in the literature by examining how varying levels of enforcement impact earnings management in M&As, particularly when the target companies are highly indebted. Additionally, it compares these influences in domestic and cross-border transactions. The study explores the relationship between enforcement and earnings management, which are critical indicators of accounting information quality. The analysis provides insights into how enforcement can mitigate opportunistic accounting practices in M&As, thereby affecting the transparency and usefulness of information for investors. The findings are valuable for managers, investors, and regulators, as they demonstrate how enforcement can improve the quality of accounting information, particularly in M&As involving indebted targets. This information can guide policies that promote transparency and reduce opportunistic practices. The research employed multiple regression analysis of panel data on acquirers of indebted targets. Earnings management (as measured by the modified Jones and Pae models) was the dependent variable, and the origin of the M&A (domestic or cross-border) was the independent variable, in addition to control variables. The analysis was performed on high- and low-enforcement samples. The results indicate that acquiring companies in M&As of highly indebted targets adopt more conservative accounting practices in high enforcement environments, resulting in less earnings management. In contrast, there is a greater tendency toward earnings management in low enforcement environments. Domestic M&As showed a greater propensity for earnings management than cross-border M&As.
Accounting information and the risk of noncompliance with contracts by companies contracted by the public sector
This study aimed to develop the Contractual Noncompliance Risk Index (CNRI) to evaluate the ability of accounting data from suppliers to predict defaults in Brazilian public sector contracts. Despite advances in predictive methodologies in the private sector, there is a lack of studies that adapt these methods to the public sector. Current legislation and the heterogeneity of suppliers underscore the need for instruments that leverage accounting information more effectively. This study contributes to the literature by addressing a theoretical gap in the systematic use of accounting information for the economic and financial evaluation of public-sector suppliers. Additionally, it aligns with regulatory reforms and the 2030 Agenda, reinforcing innovation (SDG 9) and effective institutions (SDG 16) through efficiency and transparency. The CNRI promotes risk-based financial audits, contract oversight, and economic and financial qualifications, thereby enhancing the credibility of accounting records in Brazilian public procurement. We used an exploratory, quantitative approach to analyze data from 311 suppliers that participated in bids or contracts with the Superior Court of Justice (Superior Tribunal de Justiça – STJ) between 2018 and 2023. Inspired by traditional insolvency prediction models, we used logistic regression to model the probability of penalties based on accounting variables, such as indebtedness, liquidity, and ROI, as well as control variables, such as company size and penalty history. Our results showed that higher long-term indebtedness, immobilization of resources, ROI, and current liquidity reduce the risk of contractual noncompliance. Additionally, the CNRI proved effective in identifying low-risk suppliers. Control variables improved the accuracy of the CNRI by accounting for sector-specific characteristics and supplier heterogeneity. This study proposes a practical, replicable, and predictive model that improves risk management, oversight, auditing, and economic and financial qualification in Brazilian public procurement.
Capitalization of internally generated intangible assets and its impact on the predictive power of accounting information
This research aimed to examine the extent to which the capitalization of internally generated intangible assets provides a better prediction of stock returns in the Brazilian market. Accounting for intangible assets as expenses has led to a decline in the relevance of accounting information, demanding research to test the adaptation of accounting metrics for application in risk and return models. International studies have been developed to test the effects of capitalizing these assets, but this verification has not yet been carried out in Brazil. The capitalization of internally generated intangible assets provided an accounting measure more closely related to stock returns and also made it possible to select companies with better fundamentals for value strategy. Thus, the study is relevant because it provides input for discussions on the treatment given to internally generated intangible assets. The research contributes to academia and market participants by providing an alternative measure of book value that constitutes an improvement in the informational content generated by accounting. The findings suggest that the capitalization of internally generated intangible assets improves the predictive power and informational content of accounting. The sample consisted of Brazilian companies listed on the B3 S.A. – Brasil Bolsa Balcão, from 2011 to 2022. Intangible assets reported as expenses were estimated and capitalized. The adjusted book-to-market (B/M) ratio was used in cross-sectional return regressions and in the reconstruction of the value factor in the five-factor model. The B/M adjusted for the capitalization of internally generated intangible assets showed a greater correlation with stock returns than the original indicator. The selection of value and growth stocks, using the adjusted B/M ratio, provided portfolios with higher returns in the high minus low (HML) strategy and a better measure for the five-factor model. The best results were obtained with a long position in value stocks using the adjusted HML and a short position in growth stocks using the original HML.
The moderating effect of national culture on the relationship between debt maturity and conditional conservatism
The objective of this study was to evaluate the moderating effect of national culture on the relationship between debt maturity and conditional conservatism. This research is relevant because it presents evidence that the cultural characteristics of countries influence this relationship. Previous literature indicates that debt maturity negatively affects conservative accounting reports. National culture may affect the quality of accounting information in studies of conditional conservatism, particularly with regard to debt maturity. The results provide valuable information for investors, analysts, auditors, and other users of financial statements from companies in different countries. The sample included 16 of the countries that comprise the G20 Group and was distributed between 2010 and 2023. There were a total of 162,188 observations covering 11,350 companies. The six cultural dimensions presented by Hofstede (1980, 2001) were evaluated. We measured conditional conservatism using Khan and Watts’s (2009) model. The chosen debt maturities were three, four, and five years. The results showed that national cultures with high power distance, high uncertainty avoidance, and a high long-term orientation mitigate the negative relationship between debt maturity and conditional conservatism in the companies analyzed. It can be concluded that cultural contexts lead to more or less conservative accounting practices and may indirectly influence companies’ choice of debt maturity.
Comparing research frontiers: A machine-learning analysis of the research published in the Accounting & Finance Review and in international leading accounting journals
This study compares the studies published in the Accounting & Finance Review (A&FR) with those of top-tier international accounting journals over the past decade. It aims to offer a comprehensive overview of the topics under analysis in each of these settings, highlighting key areas of research activity and ongoing debates in the accounting field across both outlets. By mapping and comparing the thematic landscape of the A&FR with that of top-tier international journals, the study provides a structured understanding of how accounting research is developed across different publication outlets. These results could potentially serve as a foundation for setting future research agendas and guiding academic inquiry toward areas of high relevance and potential impact. Our text-mining approach enables the discovery of patterns and emerging trends that are often overlooked in manual reviews. The insights from this analysis can inform academic strategy, support curriculum development, and guide funding priorities, ultimately fostering more targeted and impactful research within the accounting discipline. Our analysis is based on a dataset of 277 articles published in the A&FR and 3,652 articles published in top-tier international accounting journals classified as Association of Business Schools (ABS) 4* and ABS 4 from 2015 to 2025. Using Python, we apply the latent Dirichlet allocation (LDA) algorithm to extract topics from the abstracts, identifying latent patterns and thematic structures within the research corpus. For the A&FR, the model identifies nine distinct topics: Control systems, Budgeting-related issues, Organizational performance, Funding and credit-related matters, Insurance and actuarial issues, Taxation, Earnings management, Auditing, and Financial markets and investment returns. In top-tier international journals, the LDA solution identifies seven topics: Auditing, Earnings announcements and analyst earnings forecasts, Corporate disclosure, Accounting and capital markets, Taxation, Management control systems, and Empirical modelling in financial accounting. Despite differences in emphasis, both outlets share two topics (Auditing and Taxation), indicating at least some areas of convergence between Brazilian and international accounting scholarship.
Research directions in accounting history: Reflections and prospects
This article revisits the author’s “Research directions in accounting history” (1989), an early contribution to the historiographical study of accounting. That article identified three key approaches to accounting history: “understanding the past,” “contextualizing accounting,” and “the new positivism,” and anticipated to some degree the intellectual conflict between so-called traditional accounting history and new accounting history, which arose in the 1990s and persists to some extent. This conflict often stressed different views of the role of theory in historical accounting research, different notions of sources and methods, and even different views about the limits and boundaries of accounting itself. Accounting historians still have significant scope for innovation, and many gaps remain to be researched. Some dimensions that historical accounting researchers can consider are periods, places, people, practices, propagation, products, and professions, where newer researchers can collaborate fruitfully with more established accounting historians to expand our knowledge of accounting’s past.
Developments, trends, and challenges in accounting research in Hispanic America: An analysis based on scientific output
This paper provides an overview of accounting research in the little-studied context of Hispanic America – the Spanish-speaking countries of the Americas. It aims to answer questions such as: Which areas predominate in accounting research, and which are underdeveloped in Hispanic America? This article contributes to the understudied topic of accounting research in Hispanic America by identifying the existing research by country and area, as well as the current and future research topics. Given its impact on academia, organizations, and society, accounting research is an increasingly important topic. This work is a starting point for improving accounting research in Hispanic America because it identifies strengths and areas for development to consolidate and enhance research based on this detailed diagnosis. The article uses a methodology based on information from Google Scholar, a database that includes researchers and publications, and from which the country of origin can be determined. A database is constructed, criteria are defined, and information is systematized. The most cited documents by area are then analyzed. Additionally, Q1-categorized journals are consulted to review participation in this type of high-impact publication. The main results reveal the significant participation of Colombia and Ecuador in finance and sustainability publications, while incipient research is observed in areas such as public accounting, gender and accounting, and technology.
Brave New Risks: Tracing the evolution of actuarial research from the Accounting & Finance Review to the frontiers of Actuarial Science
This article aimed to examine the thematic evolution and methodological trajectory of research on Actuarial Science in the Accounting & Finance Review (A&FR), to assess its main intellectual contributions, and to shed light on promising avenues for future research. Despite its relevance, research on Actuarial Science in Brazil has remained fragmented, with limited integration between traditional pension studies and emerging domains such as insurance analytics, climate finance, and risk management. No prior study in Brazil has systematically mapped these developments or articulated a unified research agenda linking Actuarial Science to Finance, Accounting, and Sustainability. By documenting the A&FR’s historical contribution and outlining future directions, this study advances the understanding of how research on Actuarial Science can address new societal and regulatory challenges. It shows the discipline’s potential to strengthen public policy, enhance financial resilience, and support evidence-based regulation. This article positions the A&FR as a key platform for publishing papers on Actuarial Science in Latin America and proposes a forward-looking agenda that connects Brazilian research to international trends, fostering collaboration, interdisciplinarity, and greater global visibility for the field. A qualitative, longitudinal review of all A&FR articles related to Actuarial Science (2006-2025) was conducted. The analysis combined bibliographic mapping, thematic classification, and methodological assessment to identify dominant topics, emerging trends, and structural research gaps. This article offers a comprehensive historical mapping of actuarial research published in the A&FR from 2006 to 2025, analyzing 47 articles. The findings reveal a consistent focus on social security and pension sustainability, complemented in recent years by diversification toward insurance and financial risks, solvency, and regulation. The paper highlights the growing methodological sophistication of actuarial studies and identifies emerging research frontiers (e.g., health insurance, climate and cyber risks, and International Financial Reporting Standards-based solvency frameworks) that connect Actuarial Science to global debates on financial stability and sustainability.
Accounting education and research: Lessons from the past and future perspectives
This study aims to identify the main emerging trends in accounting education and research by considering the historical overview of research in this area, as well as the recent institutional, technological, and academic movements that have influenced training, teaching practices, and scientific accounting production. Through a theoretical essay based on dialogue and argumentation, the study analyzes the consolidation process of the field. It highlights international reviews conducted in recent decades and the contributions of the Accounting & Finance Review (A&FR) to the development of national literature. Evidence shows that quantitative studies focusing on topics such as “curriculum and instruction” and “students” predominate in the international arena, with an emphasis on empirical approaches based on surveys and samples concentrated in North America. A similar trajectory can be observed in the national context: the A&FR also shows a predominance of quantitative research focusing on students and the frequent use of questionnaires as a data collection technique. The study emphasizes the importance of paying more attention to the social impact of research in accounting education and research so that its findings can improve scientific production, educational practices, public policies, and professional accounting training. The study also emphasizes the importance of strengthening the integration of various research themes to avoid the fragmentation that still characterizes scientific production in this area. Finally, the study highlights the importance of exploring new methodologies and interdisciplinary approaches that can offer multiple perspectives on educational and training phenomena in accounting. It concludes that consolidating the field depends on a critical, integrated, and socially oriented vision that aligns scientific production with the transformations of the accounting labor market and contemporary demands.
The impact of information asymmetry on the capital structure of listed companies in Brazil: An update of the literature, models, and results
Building on the work of Albanez and Valle (2009), this research updates the data, proxies, and models used to investigate the impact of information asymmetry on financing decisions made by companies listed on the Brazilian market from 2010 to 2023. Few studies have been conducted in Brazil on this topic in the last decade, using bid and ask price data over such a long period. It is also important to investigate whether the inclusion of new proxies and changes in the national macroeconomic environment during this period alter the results obtained by Albanez and Valle (2009). Defining the capital structure is not a trivial decision; it has a direct impact on a company’s total cost of capital and consequently affects the wealth generated for shareholders. Analyzing the determinants of these decisions has been the focus of many finance studies. The credit and capital markets have undergone profound changes in the last decade, impacting the financial decision-making processes of Brazilian companies. Updating studies in this area is necessary to investigate the effects of these changes on companies’ capital structures. For this purpose, panel data models were employed, with firms’ leverage explained by various proxies for information asymmetry (with an emphasis on the bid-ask spread) and control variables. The main result is that, as information asymmetry among investors increases, companies use debt as a financing source more frequently to avoid the severe costs of adverse equity capital selection, as predicted by the pecking order theory. The evidence obtained in this study provides a new perspective on the impact of information asymmetry on corporate financing decisions and reflects changes in the Brazilian credit and capital markets.
The financial market and company/stakeholder integration: past and future
This article presents an overview of the evolution of finance theory, which is the study of allocating scarce resources to different uses in situations of uncertainty. The article highlights three periods: classical finance, which is characterized by micro-based theories applied to the corporate environment and its relationship with the capital market; market imperfections, which can alter classical norms and are represented by financial constraints, agency costs, and control mechanisms suggested by corporate governance; and emerging themes, which are based on limited rationality and seek to incorporate decision-maker behavior into classical norms that have already been adjusted for market imperfections. Finally, it provides an overview of financial markets and company/stakeholder integration in the Accounting & Finance Review over the last few years, concluding with a reflection on the future of research in this area.
Earnings management in Brazil (2000-2025): synthesis, evidence, and research agenda
This article offers a systematic, analytical, and narrative review of earnings management research in Brazil from 2000 to 2025. It integrates methods, findings, and mechanisms with an emphasis on the role of the Accounting & Finance Review (A&FR) and the formulation of a 2026-2030 agenda guided by credible identification, replicability, and regulatory utility. The methodology involved searching SciELO, SPELL, Google Scholar, and the CAPES Portal (PT/EN) for empirical studies focused on Brazil that used quantitative proxies (e.g., accruals, real activities, earnings quality, and earnings distribution). Screening was performed in two stages, with coding by thematic axes [International Financial Reporting Standards (IFRS), governance/auditing, accounting-tax, and sectoral/ownership] and proxy families (Jones/Kothari, Dechow-Dichev/McNichols, Roychowdhury, and hybrid/AI). A narrative summary was supported by a timeline and tables. Research gaps include limited causal evidence specific to norms (IFRS 15/16/17), an incomplete understanding of governance and audit mechanisms [committees, sector specialization, and American depositary receipts (ADRs)], the integration of text and numbers with interpretability, the micro-impacts of digital transformation [enterprise resource planning (ERP), continuous auditing, and smart contracts], and the effects of base erosion and profit shifting (BEPS) on the accounting and tax link. The results indicate that, on average, convergence with IFRS is associated with a moderate reduction in accruals-based management conditioned by governance, auditing (Big Four), and enforcement. There are also signs of substitution for real activities under greater accounting scrutiny. Abnormal book-tax differences (BTDs) and low tax-accounting compliance are related to lower earnings persistence and higher informational risk. The A&FR standardized protocols, aligned designs with Brazilian specifics, and connected results to regulatory issues. The article consolidates best practices, such as sector benchmarks, fixed effects, clustering, and sensitivity tests, and proposes a 2026-2030 agenda with five focus areas: accruals-real trade-offs, specific IFRS, governance and audit mechanisms, text and numbers integration, and digital transformation. The relevance of the topic lies in its useful synthesis for researchers (a map of validity and gaps), regulators and auditors (prioritization of oversight), and information users (warning signs). By integrating 25 years of evidence into a unified explanatory framework, the study reorganizes the field by clarifying the channels, conditions, and limits of management, standardizes protocols for the Brazilian context, and defines high-return priorities for 2026-2030. This reinforces the cumulative nature of the literature and brings the national debate closer to international standards.
Evolution, contributions, impacts, and implications of management accounting and controllership in the Accounting & Finance Review
This article discusses the evolution of themes, contributions, impacts, and implications of management accounting and controllership based on publications in the Accounting & Finance Review (A&FR) over the decades. Research in management accounting has evolved over time due to changes in the organizational, social, economic, and technological environment. However, understanding this evolution, its contributions, and its impacts and implications remains challenging. This article is relevant because it offers a detailed, systematic analysis of the evolution of management accounting and controllership research in Brazil. It documents temporal trends, allowing for an understanding of the dynamics of the field, its conceptual advances, and its methodological changes. The article has a clear impact by creating a frame of reference for future researchers, serving as a basis for literature reviews, new research planning, and the consolidation of thematic lines. In terms of implications, it (i) enables the identification of gaps and opportunities for future research based on the systematization of historically addressed themes and methods and (ii) provides support for editorial evaluation and scientific policy by supporting decisions on priority lines, promotion, and publishing. The article analyzes and reflects on the A&FR’s production, documenting one of the field’s longest trajectories in Brazil. This analysis is based on a logic of temporal evolution rooted in the journal’s taxonomy. The analysis considers all publications in the journal throughout its existence, including 153 articles in the field of management accounting and controllership.
The 100th issue of Accounting & Finance Review: Trajectory, present, and future
The influence of ESG initiatives on the decisions of qualified investors
This article examines the relationship between investors’ perceptions of companies’ environmental, social, and governance initiatives and their intention to invest in stocks. In addition, it tests reputation and financial performance as antecedents of investors’ perceptions of those initiatives, as well as the moderating effect of risk aversion on the relationship between them and the intention to invest in stocks of environmental, social, and governance (ESG) companies. There is still a lack of studies that, from a behavioral perspective, address the relationship between ESG initiatives and intentions to invest in stocks. ESG initiatives have attracted growing interest in investment decisions and, by extension, in the business landscape. The results provide insights for financial institution managers to direct their efforts toward offering ESG-identified products and to guide companies in managing their reputations under ESG dimensions. The approach is quantitative and descriptive, using partial least squares structural equation modeling (PLS-SEM). Primary data are collected through a structured questionnaire completed by qualified investors. Evidence shows that reputation positively impacts ESG initiatives. Financial performance, on the other hand, has a positive relationship only with governance. Social and environmental initiatives are positively related to the intention to invest in ESG stocks, but the same is not true for the governance dimension. Finally, the moderating effects of risk aversion were not confirmed. This may indicate that ESG is an integrated set of actions, as expected, at least among qualified investors. That represents a theoretical contribution to the study of investor behavior.
Political and economic uncertainty and its influence on mergers and acquisitions in Brazil
Este estudo visa analisar como fatores macroeconômicos, especialmente a incerteza política, influenciam a decisão das empresas brasileiras de realizar fusões e aquisições (F&As) no período entre 2001 e 2020. A pesquisa aborda uma lacuna importante ao focar no impacto da incerteza política e das condições econômicas sobre as F&As no Brasil, considerando uma amostra de empresas listadas e não listadas, algo ainda pouco explorado na literatura sobre mercados emergentes. A relevância do estudo se destaca em um cenário de incerteza política global, oferecendo insights sobre como as empresas brasileiras podem usar F&As como estratégia em momentos de instabilidade. O estudo fornece diretrizes práticas para gestores, e amplia o entendimento acadêmico sobre os fatores que impulsionam as F&As em mercados emergentes, especialmente relacionados à incerteza política e à macroeconomia. A pesquisa utiliza modelos econométricos com dados de F&As de 2001 a 2020, avaliando o impacto da incerteza política, do Produto Interno Bruto (PIB), das taxas de juros e da inflação na probabilidade e nos retornos dessas transações. O estudo mostra que as F&As no Brasil aumentam em períodos de menor incerteza política, especialmente quando o PIB e a bolsa estão em baixa e as taxas de juros e inflação estão elevadas. Isso sugere que as F&As servem como estratégia de consolidação e busca por economia de escala em tempos de instabilidade econômica. As empresas adquirentes tendem a obter retornos anormais positivos no curto e no longo prazo, enquanto juros altos e maior experiência corporativa influenciam negativamente esses retornos, destacando um viés de empire building. O estudo oferece diretrizes práticas para gestores em contextos de incerteza.