ANALYSIS OF THE EFFECTS OF IMPLEMENT INVESTMENT’S DECISIONS ON OPERATIONAL PERFORMANCE, PROFITABILITY AND VALUE CREATION OF BRAZILIAN COMPANIES

Authors

  • Elisson Alberto Tavares Araújo FNH
  • Marcos Antônio de Camargos Faculdades IBMEC-MG
  • Wendel Alex Castro Silva FNH

Keywords:

Corporate Finance, Investment’s Decisions, Performance.

Abstract

This paper aims to identify if theimplementation of investment decisions in Brazilian companies traded on theBM&FBovespa, occurred between Jan/1995 and Jun/2010 improved their operationalperformance, profitability of the invested capital and result in shareholder value creation.  Based on the proxies of investmentdecision: Variation in Assets, Variation in Fixed Assets and Variation inSubgroup Investments, three samples were analyzed separately, by the way ofmetrics: variation of EBIT, Gross Margin, Net Margin; Return on Assets, Returnon Investment, Return on Equity; Abnormal Return, Book-to-Market ratio andTobin´s Q.  We used the Wilcoxon Signed Rank Test to comparedthe aggregate means (all firms for sample) of the eight previous quarters witheight post-implementation.  We found a reduction in profitability,improve economic performance, beyond of the shareholder value creation, that can have been influenced by the growthof the Brazilian economy.

Author Biographies

  • Elisson Alberto Tavares Araújo, FNH
  • Marcos Antônio de Camargos, Faculdades IBMEC-MG
  • Wendel Alex Castro Silva, FNH

Published

12.04.2013

How to Cite

ANALYSIS OF THE EFFECTS OF IMPLEMENT INVESTMENT’S DECISIONS ON OPERATIONAL PERFORMANCE, PROFITABILITY AND VALUE CREATION OF BRAZILIAN COMPANIES. (2013). Tourism & Management Studies, 762-777. https://tmstudies.net/index.php/ectms/article/view/465

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