Estratégias de negócios, competição no mercado de produtos e desempenho da empresa

Abstract

Purpose - This research investigates specifics and combined effects regarding company business strategy and marked competition on companies performances listed on the brazilian stock exchange. Design/methodology/approach - Public companies listed on the brazilian stock exchange from 2001 to 2021 were analyzed. The business strategy was calculated using a composite score following the adaptation suggested by Bentley, Omer and Sharp (2013) by Ittner, Larcker and Rajan (1997) based on Miles and Snow (1978, 2003) structure. Product market competition was measured using multiple dimensions Herfindahl-Hirschman (HHI), Concentration Index (CR4) and Hall-Tideman Index (HTI). The accounting variables return on assets (ROA) and return on equity (ROE) were used to measure companies performance. Hypotheses were tested using the Ordinary Least Squares (OLS) method controlling for year and company fixed effects. Furthermore, additional measures regarding business strategy, diversification and economic cycles were used to test the robustness of the results. Findings - The results show that, in a specific way, the companies business strategy adopted does not exert significant effects on the performance, however companies in more competitive sectors present greater performance than in less competitive markets. The moderating effect of product market competition and business strategy on company performance proved to be significant, as a whole, prospector companies that operate in more competitive markets perform better, corroborating Zhang (2016). In addition, the inclusion of additional tests for business strategies, product diversification and business cycles were observed that the results were maintained or intensified in relation to initial findings. Research limitations/implications – The results of this study help to identifying the various stakeholders (forecast analysts, investors, auditors, regulators and managers) important determinants related to these three dimensions, in order to verify and monitor the strategy to be adapted by the company to achieve better performance in more or less competitive environments. Finally, this study contributes to the theory development and advances in the accounting field, economics and administration that investigate the performance of companies based on accounting measures. Originality/value – The findings of this work offer empirical evidence in the environment brazilian companies, presenting a clear result that may differ in part from the results of companies listed in other countries. This happens due to the particular situations of each country, such as the quality of the capital market, institutional environment, tax system and political and economic instability that must be considered before applying generalized forecasts.