DO SUSTAINABILITY AND COVID-19 AFFECT FIRMS PERFORMANCE, VALUE AND RISK IN BRAZIL?

Authors

DOI:

https://doi.org/10.14392/asaa.2021140209

Abstract

Objective: This study investigated the impacts of the B3 sustainability index and the Covid-19 pandemic on the value, performance, and risk of 494 Brazilian listed firms from 2010 to 2020.

Method: The difference-in-difference regression method was adopted to observe the difference in performance, value, and risk variation between listed and non-listed companies on the ISE. The following dependent variables were selected: Return on Assets, Return on Equity, Price-To-Book Value, Market-to-book, Volatility and Beta. To measure sustainability, the B3 ISE (Corporate Sustainability Index) was adopted and the effect of the Covid-19 pandemic in 2020 was considered.

Results: The main results show that adherence to the B3 corporate sustainability index significantly reduces Return on Assets, Return on Equity, Price-To-Book Value, Market-to-Book, Beta and Corporate Volatility of Brazilian companies. No significant differences were found in the variation of performance, value and risk between the ISE listed firms and their counterparts. Evidence shows that in 2020 there was a reduction in the value, performance the volatility of Brazilian companies, influenced by the emergence and expansion of Covid-19.

Contributions: The study provided evidence that the sustainable practices of the ISE listed companies positively influence market value and reduce investor risk perception. In addition, the study innovates by presenting empirical evidence on the implications of Covid-19 on the value, performance and risk of Brazilian companies.

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Author Biographies

Fernanda Maciel Peixoto, Universidade Federal de Uberlândia

Professora Associada I da Faculdade de Gestão e Negócios da Universidade Federal de Uberlândia, na área de Finanças. Professora do Programa de Pós-Graduação em Administração (PPGAdm) da FAGEN/UFU, na Linha Gestão Organizacional & Regionalidade. Doutora em Administração pelo Centro de Pós-Graduação e Pesquisas em Administração da Universidade Federal de Minas Gerais (2012), com período sanduíche no Instituto Superior de Economia e Gestão da Universidade Técnica de Lisboa (2011). Mestre em Administração pela Universidade Federal de Uberlândia (2005), Graduada em Administração pela Universidade Federal de Uberlândia (2002). Presidente do Núcleo Docente Estruturante (NDE) do Curso de Administração da FAGEN-UFU. Áreas de interesse: governança corporativa, finanças comportamentais, análise de investimentos, planejamento financeiro.

Catarine Palmieri Pitangui Tizziotti, Universidade Federal de Uberlândia

Professora Adjunta da Universidade Federal de Uberlândia, em regime de Dedicação Exclusiva, na Faculdade de Gestão e Negócios (FAGEN), na área de Finanças. Atuação em ensino, pesquisa e extensão.

Published

2021-12-05

How to Cite

De Oliveira, T. ., Jesuka, D., Peixoto, F. M. ., & Tizziotti, C. P. P. . (2021). DO SUSTAINABILITY AND COVID-19 AFFECT FIRMS PERFORMANCE, VALUE AND RISK IN BRAZIL?. Advances in Scientific and Applied Accounting, 14(2), 227–239/240. https://doi.org/10.14392/asaa.2021140209

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Section

ARTIGOS