THE ANALYSIS OF PERSISTENCE AND CONSERVATISM ON THE PROCESS OF INTERNATIONAL CONVERGENCE IN PUBLIC COMPANIES OF THE CONSTRUCTION SECTOR IN BRAZIL

This study aims at checking out if the quality of accounting information of open capital companies of the construction sector in Brazil has suffered any changes after its insertion in the process of international accounting convergence. One can point out that Brazilian research on the effects of the adoption of International Financial Reporting Standards (IFRS), focusing on opportunistic behavior of managers, who presented ambiguous results, and suggest that there will be some resistance among economic sectors. This research limited itself to analyze only companies which belong to the construction sector industry because of the adoption of Pronouncement 17 of the Brazilian Accounting Pronouncements Committee (CPC), it is possible to, conveniently, isolate the effects of the convergence of local rules to the IFRS in such a specific and significant important sector to the Brazilian economy. The analysis of the effects of the IFRS limited itself to two characteristics about the quality of the accounting information, which are the conservatism and persistence. Thus, this work was carried out in a sample comprising twenty-three companies, from 2004.4 to 2015.1, being the estimations of models carried out through panel data. The evidences presented showed effects of the adoption of CPC 17 on the quality of accounting information, so that before the adoption was identified a conservative behavior in the accounting results, but after the adoption of the financial statements were not conservative. Regarding the persistence there was also change after the adoption of CPC 17 where before adopting the accounting information proved persistent, however, post adoption was not possible to infer there is persistence in the accounting results.