Narrative texts of relevant facts

The comprehensibility of companies' accounting information is extremely important to users, as they need to be up to date on the financial and equity situation. Material facts are narrative texts released to the market with information that can influence the decisions of shareholders, investors and other users. The aim of this study was to analyse whether these texts influence their readers and share prices. The research is exploratory with a qualitative and quantitative approach. For the analysis, the Financial Sector was selected - banks with data listed on the Bovespa, where the sample was classified as positive, negative and neutral facts. In conclusion, it can be seen that the value of the shares increased in the period when most of the relevant facts were classified as beneficial to the company, while there was a reduction in their share price when information was released that caused damage, either financial or to the company's image. It was therefore found that, as they present the real day-to-day situation of the company, material facts can be considered an influencing factor.

Autorentext

Graduated in Accounting from the Federal University of Campina Grande (UFCG), Specialist in Environmental Management from UFCG, Postgraduate student in Public Management at IFPB, Postgraduate student in Accounting for Public and Business Management. Master in Agroindustrial Systems - CCTA/UFCG.

Klappentext

The comprehensibility of companies' accounting information is extremely important to users, as they need to be up to date on the financial and equity situation. Material facts are narrative texts released to the market with information that can influence the decisions of shareholders, investors and other users. The aim of this study was to analyse whether these texts influence their readers and share prices. The research is exploratory with a qualitative and quantitative approach. For the analysis, the Financial Sector was selected - banks with data listed on the Bovespa, where the sample was classified as positive, negative and neutral facts. In conclusion, it can be seen that the value of the shares increased in the period when most of the relevant facts were classified as beneficial to the company, while there was a reduction in their share price when information was released that caused damage, either financial or to the company's image. It was therefore found that, as they present the real day-to-day situation of the company, material facts can be considered an influencing factor.