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Fiduciary Responsibility of Governance: Operational and Financial Management

Author

Listed:
  • José Antonio de França
  • Magda de Lima Lucio
  • Sérgio Ricardo Miranda Nazaré
  • Clesia Camilo Pereira
  • Eduardo Tadeu Vieira
  • Paulo César Melo Mendes

Abstract

This article, as part of research in development, aims to propose an analytical, theoretical-positivist model to assess the fulfillment of the fiduciary responsibility of managers, under operational and financial aspects, based on the efficiency indicator of the fiduciary responsibility of governance (FRG), supported by a set of equations that measure the efficiency of operational management, through the Degree of Operational Leverage (DOL), and the efficiency of financial management using the Financial Efficiency Ratio (FER), the Current Ratio (CR) and the Liquidity Sustainability Ratio (LSR). The model is empirically tested with laboratory data, retrieved from the Standardized Financial Statements (SFS), of a sample of firms listed on B3, in the post-COVID-19 period, in the time horizon 2021 to 2023, in the environment of the research groups “Laboratory of Research and Extension of the Third Sector - LRETS” and “Sustainability of Financial Liquidity Management - SFLM”, at the University of Brasília, accredited by CNPq. The results provide robust evidence of the adequate specification of the model, and the empirical tests using the data from six firms from the laboratory indicate that none of the firms complied, as a whole, with the requirement of fiduciary responsibility of operational and financial management. Finally, it is expected that research with a broader scope of firms and business segments, in a broader time horizon, can evaluate, criticize and test the model to obtain more robust and significant results.

Suggested Citation

  • José Antonio de França & Magda de Lima Lucio & Sérgio Ricardo Miranda Nazaré & Clesia Camilo Pereira & Eduardo Tadeu Vieira & Paulo César Melo Mendes, 2025. "Fiduciary Responsibility of Governance: Operational and Financial Management," International Journal of Business and Management, Canadian Center of Science and Education, vol. 20(1), pages 1-59, February.
  • Handle: RePEc:ibn:ijbmjn:v:20:y:2025:i:1:p:59
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    References listed on IDEAS

    as
    1. Jos¨¦ Antonio de Fran?a & Wilfredo Sosa Sandoval, 2019. "Necessary and Sufficient Conditions for Liquidity Management," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(5), pages 1-85, May.
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      JEL classification:

      • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
      • Z0 - Other Special Topics - - General

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