Abstract

DA SILVA, Tarcísio Pedro; ROHENKOHL, Leonardo Bernardi  and  BIZATTO, Luana Sara. Relation between Financial Slack and Economic Performance in Companies above and below 50 Years Old. Cuad. Contab. [online]. 2018, vol.19, n.47, pp.130-148. ISSN 0123-1472.  https://doi.org/10.11144/javeriana.cc19-47.ffde.

This study aims to analyze the relationship between financial slack and economic performance in the companies above and below fifty years old. This is intended to promote researches taking into account the differences between companies with different seniority in the market, since there is a lack of research dealing with the seniority of the companies. To conduct this study, companies listed in the index Brazil 100 (IBrx-100) and the Corporate Direction Index-New Market (IGC-NM) from the Future, Goods and Stock Exchange of São Paulo were consulted. It provided a sample of 78 companies below fifty years old and 34 companies above fifty years old. By using the descriptive statistics and the canonical-correlation analysis, it is concluded that in both companies, above and below fifty years old, the financial slack is related to the economic performance. In addition, the companies above fifty years old show a relationship between these two sets of indicators stronger than the companies below fifty years old. This way, the companies may be willing to consider their seniority in the market, i.e., their level of stability and maturity in order to understand the higher or lower use of the financial slack to enhance their economic performance. The fact is that a greater relationship between financial slack and economic performance is perceived in the companies above fifty years old.

Keywords : financial slack; economic performance; companies above 50 years old; companies below 50 years old.

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