Provisão de perdas e gerenciamento de resultados em instituições financeiras: uma análise a partir dos maiores bancos brasileiros.

Purpose: This study aims to analyze the practice of earnings management (EM) by the five largest banks in the Brazilian financial market through the manipulation of the loan loss provision (LLP). Methodology: The methodology used in this study recognizes (i) that the EM can result from both discretionary accounting records and actual decisions of companies and (ii) that, in the case of financial institutions, the calculation and registration of LLP do not comply with a detailed rule, but on general principles. Based on this recognition, it uses a sample composed of the five largest banks operating in the Brazilian market, in the period 2004-2019, with quarterly data, to estimate different panel specifications in order to test such as return, size and the use of financial derivatives affect the EM. Results: The research results suggest, from the identification of the random effects model, that the return and the use of derivatives have an inversely proportional influence, and that size has a proportional influence, on LLP, corroborating the thesis of the use of LLP as an instrument for earnings management by the largest Brazilian banks. Contributions of the Study: The general contribution of this study to the literature is in the discussion of LLP as a measure of earnings management by actual decisions and discretionary records in discretionary financial statements; the study also contributes to a better understanding of EM decisions in large Brazilian financial institutions. [ABSTRACT FROM AUTHOR]