ASSOCIATION BETWEEN PERFORMANCE-DEPENDENT REWARD AND FINANCIAL INDICATORS: EVIDENCE FROM THE ELECTRICITY SECTOR

Abstract

The goal of this study is to identify whether there is a connection between the financial accounting indexes and the performance-dependent reward practices in companies in the electricity sector in Brazil. This is a descriptive study, using qualitative and quantitative approach. The sample consists of 49 companies listed in BM&FBOVESPA (Bolsa de Valores, Mercadorias e Futuros), which had all information available. The financial accounting indexes used were: net margin (NM); rate of return on total assets (ROTA), return on equity (ROE) and return on shareholders’ funds (ROSF). A descriptive analysis was carried out and the Spearman’s coefficient correlation statistical test was performed so as to reach the goal of this investigation. Among the study's findings, stands out: 65,3% of the total sample refer to the performance-dependent reward practices in the management report; lack of significance in the statistical analysis of correlation between the variables, leading to consider the hypothesis as null, i.e., the performance-dependent reward practices don´t have positive influence on the profitability results of the Brazilian companies in the electricity sector. Based on Herzberg’s motivation-hygiene theory, the results allow us to infer that the practice of performance-dependent reward used as stimulus for a greater organizational commitment, considered apart, does not represent a factor of satisfaction among professionals working in the electricity sector.