Banca de DEFESA: Raíssa Aglé Moura de Sousa

NON-GAAP DISCLOSURE IN BRAZILIAN BANKS: ASSOCIATION BETWEEN QUALITATIVE INFORMATION AND QUANTITATIVE MEASURES

Disclosure; Qualitative Information; Non-GAAP Quality; Banks.

This study aimed to verify whether qualitative non-GAAP information is related to the quality of non-GAAP measures of Brazilian banks. Based on voluntary disclosure and signaling theories, this thesis argues that there is an association between the extent of qualitative nonGAAP information and the quality of quantitative non-GAAP measures of Brazilian banks. The thesis consists of three articles, with a sample composed of entities from the Brazilian banking industry. The analysis period covered the quarters between the years 2010 and 2023. The first article focuses on identifying the determinants of qualitative non-GAAP information, measured through the qualitative non-GAAP index, and the results show that entity profitability, earnings volatility, and bank internationalization are explanatory factors for the increase in qualitative non-GAAP information. The second article aimed to verify the relationship between qualitative non-GAAP information and the persistence of non-GAAP measures. The results reveal that the persistence of the recurring non-GAAP earnings measure used by banks is directly influenced by qualitative non-GAAP information and that in scenarios with higher (lower) transparency of such qualitative information, the persistence of recurring earnings is also higher (lower). The third article sought to identify whether qualitative non-GAAP information is associated with greater value relevance of the quantitative non-GAAP measure of recurring earnings. The evidence indicates that recurring earnings are value-relevant for the Brazilian capital market and, on average, are not influenced by qualitative information. However, under conditions of low transparency of qualitative information, recurring earnings cease to be value-relevant, while for the rest of the sample, this relevance persists. The combination of the three studies partially confirms the thesis, indicating that while qualitative non-GAAP information improves the quality of quantitative non-GAAP measures in terms of persistence, it only circumstantially affects the value relevance of quantitative non-GAAP measures. Thus, this thesis is important for expanding knowledge in the field of voluntary non-GAAP disclosure, contributing to users and regulatory bodies