O impacto do investimento no valor das empresas : evidência empírica da existência de underinvestment e overinvestment no mercado brasileiro

Abstract

This article aims at identifying the existence of a great level of investment, through the finding of two effects in the Brazilian market, the underinvestment and overinvestment. The information for this study were collected from companies listed in the São Paulo Stock Exchange.Li (2004) points out the difficulty in finding works that investigate how the investments affect the companies. In a national scope, Fortunato, Funchal and Da Motta (2012) and Pellicani (2015), pointed out that works that explore the explanatory power of investments in the company's performance are not easily found, and Lyra and Olinquevitch (2007) point out the existence of few works that analyze the performance of the companies¿ shares according to their investment decisions.Therefore, the present study gains relevance, since it tests the company's investment and value relationship aiming at identifying the existence of a great level of investment, through the identification of the underinvestment and overinvestment effects.The technique used for the analysis was a panel, by observing a single individual during several years, through the Generalized Method of Moments (GMM). Observations about 266 companies listed in the São Paulo Stock Exchange during the period 2006 to 2015 were collected for the model totalizing 2004 observations. The observed dependent variable was the market value divided by the capital stock. In order to test the Hypothesis in the study, the main independent variables observed were the investments made, and such variable was observed when squared. As the control variables, we have the indebtedness and the distribution of dividends.The obtained results allow us to conclude that the hypotheses in the study are true, pointing to the existence of a great level of investment for the Brazilian market, and the underinvestment and overinvestment effects, such as Morgado and Pindado (2003) did for the Spanish companies. Thus, we hope to help in the pricing, valuation of companies, and the managers in making decisions about their investment policies.