• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Quaterly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Managing Editor: Ms. Shira. W. Lu
    • Abstracting/ Indexing:  Crossref, Electronic Journals Library , EBSCO
    • E-mail: ijtef.editorial.office@gmail.com
HOME > Archive > 2021 > Volume 12 Number 2 (Apr. 2021) >
IJTEF 2021 Vol.12(2): 48-53 ISSN: 2010-023X
DOI: 10.18178/ijtef.2021.12.2.692

Assessing the Brazilian Electric Sector’s Financial Monitoring Milestone

Aracéli C. S. Ferreira, André L. Bufoni, Jazmin F. de La Cueva, Vinícius M. Maia, Dilo Vianna, and Juliana M. Queiroz

Abstract—The Brazilian energy sector adopted a new regulation system in 2015 due to a system collapse threat. The system was changed to contractually incorporate firms’ economic-financial monitoring. This paper aims to assess the progress of this monitoring model toward achieving its goals. Thus, we proceed with a triangulation with three analyses. First, we analyse the literature to indicate if the economic-financial monitoring shows a hybrid form of adoption as suggested by the literature as the most suitable towards achieving regulatory goals. Second, we verify the perception of the economic-financial monitoring efficiency by the regulatory agency. Third, we evaluate the behaviour of some financial indicators before and after the new regulation. Our results show that, first, the economic-financial monitoring adopts a hybrid form which may drives better monitoring. Second, the perception of the regulator regarding efficiency of the financial monitoring model is favourable. Third, our results show that the sector leverage and profitability variances were significantly reduced after the implementation of financial monitoring which indicates less Asymmetric Information and consequently, better monitoring. In general, our results indicate some uncertainty reduction and more uniform behaviour of the entire sector after adopting an economic-financial monitoring system.

Index Terms—Electric sector, financial monitoring, financial indicators, energy regulations.

The authors are with Laboratory of Accounting Systems Modeling, Federal University of Rio de Janeiro, RJ 21941901 Brazil (e-mail: araceli@facc.ufrj.br, bufoni@facc.ufrj.br, jazminfigari@gmail.com, vmaia@facc.ufrj.br, dilo@facc.ufrj.br, julianamolinaq@gmail.com).

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Cite: Aracéli C. S. Ferreira, André L. Bufoni, Jazmin F. de La Cueva, Vinícius M. Maia, Dilo Vianna, and Juliana M. Queiroz, "Assessing the Brazilian Electric Sector’s Financial Monitoring Milestone," International Journal of Trade, Economics and Finance vol.12, no.2, pp. 48-53, 2021.

Copyright © 2021 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

 

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