RELATIONSHIP BETWEEN THE SOCIOECONOMIC ENVIRONMENT AND THE ECONOMIC AND FINANCIAL PERFORMANCE AND THE MARKET VALUE OF TRADE CAPITAL COMPANIES IN THE BRAZILIAN ELECTRIC SECTOR

Abstract

Objective: The objective of this paper was to evaluate the correlation of macroeconomic variables and the 2015-2016 financial crisis with the ROA, ROA-O, ROI and MTB of Brazilian capital companies in the Brazilian electricity sector, listed on B3. Background: Companies are expected to have longevity and, therefore, they must present adequate financial health. It is up to managers to make decisions to maximize the profit of the firm, contributing to raising its market value, providing long-term financial and economic sustainability. Method: We used a sample with quarterly data from 42 publicly traded companies in the Brazilian electricity sector, collected at Base Economatica, between the first quarter of 2010 and the fourth quarter of 2020. Regressions with panel data in fixed effects were used and random effects. Results: The results showed that macroeconomic variables correlated with the financial performance and market value of companies in the electricity sector in different ways in relation to each dependent variable. The financial crisis showed a negative correlation with ROA and MTB. Contributions: It was verified that the macroeconomic variables presented distinct correlations in relation to the economic-financial performance and the market value, showing that exogenous shocks demand specific strategies of the managers for the maintenance of satisfactory levels of economic-financial performance and the preservation of the value organizations market. Managers and investors can benefit from this study, as the analysis of the electricity sector offers satisfactory return investment alternatives, especially in times of uncertainty.