Endogenous Factors in the Performance of BRICS Companies

Lorrana Damaris Soares Garcia, Rafael Martins Noriller, Josimar Pires da Silva, Ducineli Régis Botelho


Results and contributions of the article: The results indicated positive relationship between capital structure (size) and stock market performance. The current liquidity variable showed a negative and significant 1% relationship with the stock market performance. The capital structure showed a positive and significant relationship at 1% with the share return. We concluded that there is impact of the endogenous variable on the stock return of BRICS companies, corroborating the work of Idada, Atu and Kingsley (2019) and Tran et al. (2019).

Purpose of the paper: In this context, we analyzed the impact of endogenous variables on the performance of BRICS companies.

Gap: The focus on emerging countries reinforces the results of research in developed countries and other economic groups. In time, several studies reinforce the analysis considering macroeconomic variables and performance in an aggregate manner, either by sector or country.

Relevance of the chosen theme: Performance has become the target of all companies at a time with increased competitiveness. Thus, several researchers worldwide aim to study performance and its determinants in order to assist managers, investors, and entrepreneurs through fundamentalist indicators, whether being accounting or macroeconomic indicators.

Impact on the area: Highlight the endogenous fundamentals of companies that impact the performance of emerging economies.Thus, performance focused on companies, without focus on sectoral indexes.

Methodology: Research included annual data from 2014 to 2019 of the 323 companies. Data were collected form the Reuters Eikon. For analysis, we adopted a panel data approach through descriptive statistics and multiple regression using three hypotheses and control variables.


performance; stock return; BRICS; endogenous factors; capital structure.

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