The effects of the lava jato operation on the trading volume in the brazilian stock market

DOI: https://doi.org/10.4025/enfoque.v43i3.59022
Keywords: Corruption; ‘Lava Jato’ Operation; Trading Volume.

Abstract

Objective: To analyze the effects of the disclosure of news related to the investigations of the Lava Jato operation on the trading volume of Brazilian companies.
Method: To evaluate the effects of the operation's disclosures on abnormal trading volume, the event study methodology was used, highlighting the week of the operation as the event of analysis, in the period from 2014 to 2017, covering the first to the forty-second phase of the Lava Jato operation.

Originality/Relevance: The research uses an approach that analyzes trading volume in response to news of corruption, which can complement previous studies that mainly focused on price changes. This expands the understanding of market behavior in response to news of corruption.

Results: The findings indicate that the Lava Jato operation had effects on the Brazilian financial market, increasing the trading volume of the companies mentioned in the operation, while for companies operating in the sectors of the cited companies, a negative effect on trading volume was evident. These results suggest that news of corruption affects investor behavior, and in the face of market uncertainties, investors react more actively to the news, leading to abnormal trading volumes.

Theoretical/Methodological/Practical Contributions: The results contribute to current literature by identifying the effects of corruption news on trading volumes of the companies involved and providing evidence of the existence of informational transfer in the Brazilian market. These findings offer valuable insights for investors, analysts, and companies seeking a better understanding of the impacts of corruption news in the business environment. Additionally, the results can be relevant for the development of more effective corporate governance policies and practices, as well as aiding investors in decision-making processes.

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Author Biographies

Silvio da Costa Magalhães Filho, Universidade do Estado de Mato Grosso - UNEMAT

Mestre em Ciências Contábeis pela Fucape Business School - ES; Especialista em Controladoria, Auditoria e Perícia pelo Instituto Cuiabano de Educação (ICE); Especialista em Contabilidade Pública pela Universidade Cândido Mendes (UCAM); MBA em Planejamento Tributário pela Universidade de Cuiabá (UNIC); Bacharel em Ciências Contábeis pela Universidade de Cuiabá (UNIC); Profissional Liberal, Consultor em Contabilidade, Finanças e Planejamento Tributário; Professor Assistente (Contratado) no Curso de Ciências Contábeis da Universidade do Estado de Mato Grosso - UNEMAT; Analista Regulador - Contador da Agência Estadual de Regulação dos Serviços Públicos Delegados - AGER-MT.

Fábio Moraes da Costa, FUCAPE Business School

Bacharel, Mestre e Doutor em Ciências Contábeis pela Universidade de São Paulo (USP), além de ter sido exchange student (Accounting) pela University of Illinois at Urbana-Champaign (EUA). É Professor Associado do Programa de Doutorado e Mestrado Profissional em Ciências Contábeis da FUCAPE Business School. Possui 20 anos de experiência em financial accounting & financial reporting, tanto em pesquisas como em treinamentos executivos e elaboração de pareceres técnicos (BRGAAP/IFRS). É membro do International Panel on Accountancy Education (IFAC); membro da Delegação Brasileira nas reuniões do Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR/UNCTAD); e membro de Grupos de Trabalho da Área Técnica do Conselho Federal de Contabilidade (CFC). Foi Diretor de Ensino e Pesquisa da Fundação Brasileira de Contabilidade e foi auditor externo independente (EY).

Danilo Soares Monte-Mor, FUCAPE Business School

Doutor em Ciências Contábeis e Administração pela Fucape Business School, mestre em Economia pela Universidade Federal do Espírito Santo nas áreas de Teoria Econômica e Métodos Quantitativos, e graduado em matemática pela Universidade Federal de Viçosa. Atualmente desenvolve pesquisas nas áreas de Accounting Based Valuation Models, Corporate Governance e Asset Pricing. No período de Janeiro à Dezembro de 2013 realizei estágio como doutorando na Universidade do Arkansas, Estados Unidos.

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Published
2023-11-16
How to Cite
Magalhães Filho, S. da C., Costa, F. M. da, & Monte-Mor, D. S. (2023). The effects of the lava jato operation on the trading volume in the brazilian stock market. Enfoque: Reflexão Contábil, 42(3), 1-17. https://doi.org/10.4025/enfoque.v43i3.59022
Issue
Vol 42 No 3 (2023): Enf.: Ref. Cont.
Section
Original Articles

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