Accounting Transparency and Business Concentrations: A Study on Financial Disclosure under IFRS

Abstract

This article analyzes the relationship between financial disclosure in business combinations and the performance of Brazilian companies that apply International Financial Reporting Standards (IFRS). The research focuses on companies listed on the B3 Stock Exchange (Brazil), exploring how corporate factors such as debt, profitability, return on assets (ROA), size, type of external auditor, major shareholders, and industry influence the level of compliance with the disclosure requirements of IFRS 3 – Business Combinations. The sample consists of 60 companies and is based on data extracted from their 2018 annual reports. The results indicate that size, debt, and industry type are positively associated with the level of compliance, while profitability, ROA, auditor quality, and shareholder structure were not significantly related. The study contributes to the literature on financial disclosure and corporate governance by offering relevant empirical evidence for emerging countries and suggesting recommendations for accounting regulators and standard setters.