Banca de DEFESA: Julio Cesar Gomes Mendonça

Uma banca de DEFESA de DOUTORADO foi cadastrada pelo programa.
STUDENT : Julio Cesar Gomes Mendonça
DATE: 26/11/2025
TIME: 09:00
LOCAL: Plataforma Teams - https://teams.microsoft.com/l/meetup-join/19%3a733102d5cd9d4e65a015747c7fc09ee2%4
TITLE:

Related-Party Transactions, Economic Benefits, and Regulatory Effects

KEY WORDS:

1. Related-Party Transactions 2. Propping 3. Tunneling 4. Disclosure

PAGES: 219
BIG AREA: Ciências Sociais Aplicadas
AREA: Administração
SUBÁREA: Ciências Contábeis
SUMMARY:

Related-party transactions (RPTs) represent one of the most ambiguous phenomena in accounting and corporate finance. Their dual nature allows them to be used both to create value (via operational synergies, efficiency, and reduced transaction costs) and to destroy value (through tunneling, extraction of private benefits, or fraud, as in the Enron and Parmalat cases). The academic literature, predominantly grounded in Agency Theory, acknowledges this inherent conflict between agent and principal. Given the complexity and risks of minority shareholder expropriation, global standard-setters (IFRS) and local regulators (such as CVM, BACEN, ANEEL, etc.) focus on disclosure as the primary monitoring mechanism, rather than prohibition. However, the effectiveness of this monitoring is questioned. The literature indicates that while standards define what must be disclosed, there is a critical gap regarding how this disclosure should be presented. Academics report low formal compliance with standards but do not thoroughly explore the quality or comparability of the reported information. This thesis argues that the absence of a standardized disclosure model results in heterogeneous and low-quality information, compromising transparency and preventing information users from understanding and comparing the true effects of these transactions. Given this gap, the main objective of this thesis is to analyze the form and level of completeness of related-party transaction disclosures by publicly traded companies in Brazil. To achieve this objective, the study first conducted a systematic literature review (in the Scopus database from 2012 to 2023, identifying 153 articles) to map the dominant theories and themes. (The thesis identifies Agency Theory as the primary theory and pinpoints 8 themes researchers analyze). Additionally, a comparative analysis of regulations in different jurisdictions (Europe, Asia, Africa, Middle East, and the Americas) was performed, demonstrating that regulation is highly contingent on the local institutional context, despite the widespread adoption of IFRS. Second, a structured checklist, based on CPC 05 (R1), was applied to measure the completeness and form of disclosure in 91 companies from the Novo Mercado listed on the B³ from 2018 to 2023. Finally, third, an econometric model was applied to assess how debt (leverage) and COVID-19 impact related-party transactions. The main findings of the thesis are: The study corroborates that disclosure in Brazil is deficient. The primary contribution is the finding of an absence of a standardized disclosure model. Companies use heterogeneous formats (text, tables, or both) and omit crucial items (such as guarantees, provisions, and contractual terms), severely undermining comparability and transparency. This suggests the need for standardization in the presentation format to ensure transparency and effective monitoring. The parent company data revealed a propping situation, while the consolidated data showed a tunneling result. The model did not identify statistical significance for debt and COVID-19, thus rejecting the hypothesis that these two events alone impact the transactions. The thesis provides evidence that low quality and extreme heterogeneity severely limit the ability of econometric models to capture the true economic effects of these operations.

COMMITTEE MEMBERS:
Externo à Instituição - ALFREDO SARLO NETO - UFES
Presidente - 1450485 - JOMAR MIRANDA RODRIGUES
Interna - 2002946 - MARIANA GUERRA
Interno - 2221870 - PAULO AUGUSTO PETTENUZZO DE BRITTO
Externo à Instituição - SILVIO HIROSHI NAKAO - USP