Valor patrimonial: usos, abusos e conteúdo informacional

Abstract

This paper discusses the use of book value per share in investment analysis in the Brazilian equities markets. The concept of book value per share is first discussed on the basis of the generally accepted notion of value in the modem theory of Finance, that is, present value of future cash flows, and we refer to some of its uses in the Brazilian contexto We then move on to test the significance of the information content of book value per share, by measuring the magnitude of market price reactions to news of changes in book value per share. The results reported in this paper indica te a lack of significance in the information content of book value per share, an evidence of rational behavior by market participants. We perceived some antecipation by the market to the news of financiai statement submission to the São Paulo Stock Exchange.