Brazilian Market Research Articles

Brazilian natural gas market dynamics: A data panel analysis of the Brazilian market compared with Argentina, Colombia, Mexico, and India using Porter's five forces framework

This study offers a comparative analysis of natural gas markets in Brazil, Mexico, Colombia, Argentina, and India, spanning from 2000 to 2020. Leveraging panel data and historical time series analysis, coupled with Porter's Five Forces framework, it examines industry dynamics across upstream, downstream, midstream, and upstream dimensions. Insights into competitive landscapes are derived, considering regulatory frameworks, resource availability, infrastructure development, and demand patterns. Despite Brazil's efforts to enhance domestic production, infrastructure, and regulatory reforms, challenges persist, hindering sectoral growth. Comparative studies underscore the need for policy improvements to align with investment commitments. This study contributes novel insights into the competitive positioning of natural gas markets, offering actionable recommendations for stakeholders. Identifying potential bottlenecks informs strict decision-making in the global energy landscape.

Market concentration of the Brazilian hospital medical supplementary health system

BackgroundThe Brazilian supplementary health market has undergone transformations in recent years due to constant mergers and acquisitions of by large corporations, contributing to the increase in market concentration, especially in the poorest and least developed regions of the country. Thus, given the care it provides and its economic relevance, understanding the fundamentals of these movements, the likely consequences and trends for the health market are relevant, important, and strategic.ObjectiveTo understand the general and specific context of Brazilian supplementary health, its scenarios, and trends, with emphasis on the analysis of market concentration and recent mergers and acquisitions.MethodologyThe research is applied, descriptive and exploratory and uses secondary data from various sources, submitted to quantitative data analysis methods. The data are organized into three groups: historical and regulatory documents; industry data; and market.ResultsThe results show the growing concentration of the market promoted by large publicly traded corporations, the growing relevance of tech startups on the healthcare landscape, the predominant use of the relative valuation model, with implicit multiples for asset pricing and the prevalence of corporate health plans.ConclusionThe growing concentration of the system projects a market with fewer options and less competitiveness, since the growth of large operators is evident, in addition to the relevant increase in the number of complaints from users of the system, which signals the growing gap between the expectations of users and the levels of quality care offered. The study also highlights the predominance of corporate health plans, revealing the direct relationship between access to supplementary health services and employability rates. The analysis of M&A operations, in addition to the increase in market concentration, reveals the prevalence of the use of the relative valuation model and implicit multiples for the pricing of traded assets. This denotes the future expectation of wealth generation, at least equivalent to the historical series of the sector, on the part of investors, whose frustration may signal the decreasing attractiveness of resources and M&A operations in the sector in the coming years.

MANUFACTURING AND CHEMICAL CHARACTERIZATION OF ISABEL RED

Considering the potential consumption and economic importance that Isabel wine represents in the Brazilian consumer market, the aim of this research was to study the manufacturing and to determine the chemistry composition of red wine produced from Isabel grapes. The wine fermentation was achieved with 0.2 g/L of Saccharomyces cerevisiae yeast at 25ºC. After seven days of fermentation the correction of sugar was performed. After 40 days, the wine was separated from residues. The wine was clarified with commercial unflavored gelatin at the proportion of 0.2 g/L. The parameters total and volatile acidities, ethanol, dry extract, carotenoids, anthocyanins, total phenolic and reducing sugar were studied. Isabel grapes have the potential to be used to produce wine, hence its economic importance in Brazil. The chemical profile provided essential information about the Isabel red wine and the yeast used for inoculation result in good must fermentation, according to Brazilian legislation.

Chilled paddy rice grains applied directly to industrial processing have a better head rice yield

Rice is important for food security around the world, and the search to minimize losses and obtain the highest rate of head yield grains during processing is a recurring demand. In this context, the aim of this study was to understand the impact of grain conditioning temperature, when subjected directly to husking and polishing, on head rice yield. For this purpose, commercial brown rice grains from two locations and red rice grains from one location in the state of Rio Grande do Sul were studied. The grains were stored at temperatures of 15 °C, 20 °C, 25 °C and 30 °C. The following comparisons were made: a) Unhusked grain: Rice in the husk stored at different temperatures for 7 days and husked; b) Polished: Rice in the husk stored at different temperatures for 7 days, husked and stored for a further 7 days at different temperatures and polished; and c) Complete polished: Rice in the husk stored at different temperatures for 7 days, husked and polished in immediate sequence. The head yield of whole and polished grains was quantified according to the above tests. The results show that for both brown and red rice, storage at 15 °C, when subjected directly to the husking and polishing stages, represents a higher yield head rice, about 1.7% in polished grains when comparing 15 and 30 °C, possibly due to the increased hardness of the grains, as verified by the texture, with a financial impact of approximately R$ 540 million on the Brazilian rice market.

On the regulatory and economic incentives for renewable hybrid power plants in Brazil

The complementarity between renewable generation profiles has been widely explored in the literature. Notwithstanding, complex interactions between regulatory and economic frameworks add interesting challenges and opportunities for hybrid power plant investors, regulators, and planners. Focusing on the Brazilian power market, we study the alignment of incentives between the economically-optimized strategy of hybrid power plant investors and the efficient utilization of the transmission resources. To do that, we propose a decision model that co-optimizes the risk-adjusted strategy of a hybrid power plant owner comprising (i) the forward-market involvement, (ii) the contracted amount of network access, and (iii) the share of renewable sources composing the hybrid power plant. We also propose adjusting the current regulatory framework to consider a unified calculation for the Firm Energy Certificates of non-controllable renewable power plants, including hybrid units. Based on that, we ensure a non-discriminatory regulatory framework for renewables acknowledging the diversity of generation profiles that hybrid units may have due to their optimal hybridization shares and network-access contracting strategies. A case study using realistic data from the northeastern region of the Brazilian power system showcases strong economic incentives for hybridization with reduced transmission resource utilization.

Money value, risk perception and behavior: evidence from the Brazilian market

PurposeThis research sheds light on the distinct decision-making behaviors and perceptions related to the value attributed to money, uncovering nuances in the interrelationship between money valuation and its ensuing influence on risk perceptions and related behaviors, mainly focusing on financial education.Design/methodology/approachExecuted in the Brazilian market, this study employs a quantitative approach, encompassing 663 participants and deploying comprehensive statistical methodologies – principally, structural equation modeling based on variances – to scrutinize the amassed primary data.FindingsThe insights from the study reveal a significant impact of both negative money value (NMV) and positive money value (PMV) on participants' financial decisions, profoundly shaping perceptions, acceptances and responses to risk. Consequently, this study underscores the pivotal role the perceived value of money plays in sculpting financial behaviors and formulating risk management strategies. Distinctly, this research emphasizes intrinsic monetary values, extending unprecedented insights by delineating aversive behaviors toward losses and risks and probing the repercussions of both negative and positive monetary values.Originality/valueIt acts as an avant-garde exploration, unveiling new perspectives on upcoming consumers' anticipated financial decision-making approaches and pinpointing areas warranting deeper exploration and comprehension within the fluid consumer market landscape.

Proposal for the design of studies of intramammary antimicrobials to be conducted in Brazil for registration with the Ministry of Agriculture and Livestock

Before being made available to the Brazilian market, all veterinary medicines must be registered with the Ministry of Agriculture and Livestock after their efficacy, safety, and quality have been proven through clinical studies and scientific literature. Depending on the product class, the studies required by the regulatory authority must be carried out per Brazilian regulations and international reference guides. Some international organizations pursue the harmonization of these requirements, aiming at the mutual acceptance of studies conducted in different regions to facilitate international trade and reduce the use of animals in clinical research. Mastitis is one of the most prevalent and costly diseases in dairy cows, and it is associated with negative impacts on milk production and quality, cow welfare, and the profitability of the dairy industry. Normative Instruction No. 26/2009 determines a few rules for conducting studies for registering intramammary antimicrobials for cows with mastitis. However, the regulated sector and researchers report difficulties in following the recommendations of specific guidelines, which complement this regulation due to the peculiarities of Brazil’s production systems. This review article aims to provide subsidies and orientations that scientifically support the conduction and critical analysis of clinical studies proving the efficacy of intramammary products for treating clinical and subclinical mastitis in cows. Considering the need for scientific rigor in the studies, the recommendations available in international guidelines, and the need to adapt the protocols to the current situation of veterinary clinical research in Brazil, this document is intended to contribute to the internal harmonization of experimental protocols that support both the regulated sector and the regulatory authority.

The Role of Innovation in the Competition Between Fintechs and Traditional Banks in Brazil

The Brazilian banking market has distinct and peculiar characteristics, resulting from its historical evolution, specific cultural traits and control exercised by the Central Bank. This article aims to analyze, from the perspective of one of the largest Brazilian banks, the role of innovation, products and processes, in the competition between fintechs and traditional banks. The methodology used was a single case study, qualitative and descriptive approach, with data collection through interviews with managers and customers of Alfa Bank and internal and external documentary survey. It has been evident that the emergence of Fintechs, with its flexible business model, with reduced operational costs, provided by product and process innovation, impacted the banking market in Brazil, traditionally dominated by a small number of large banks, which operated in a traditional way. The analyzed bank, known as Alfa, follows technological developments and improves its main products and services, taking into account suggestions from both employees and customers. The results also showed that Brazilian customers recognize the importance of innovation, especially technology-based, but also value the physical presence of traditional banks, which inspires more confidence in them than Fintechs, which operate online.

Hybrid method for benchmarking the operating costs of Brazilian energy distributors

Purpose: This study aims to propose a model for benchmarking evaluation, applied to the Brazilian regulatory system in establishing efficient operating costs for electricity distribution concessionaires. Theoretical framework: The application of data envelopment analysis to the regulation of electrical energy distribution is discussed, elucidating how different regulatory models accompany this modality. Methodology: The proposed methodology is based on a benchmarking evaluation model that integrates the associated use of Data Envelopment Analysis and Stochastic Frontier Analysis, through a methodology that establishes the evaluation of efficiency in Three Stages. Findings: The results of the performance assessment were expressed in terms of management efficiency, in which the effects of the operational environment and statistical noise are controlled, resulting in a rigorous measure of efficiency, by introducing manageable and unmanageable variables into the calculation directly from efficiency. Originality: The methodology allows to adjust operational costs, by levelling the operating environment of each electricity distribution concessionaire before repeating the DEA analysis, making the concessionaires' performance more coherent with the characteristics of the Brazilian market. Keywords: Electricity Distribution; Efficient Operating Costs; Benchmarking; Data Envelopment Analysis (DEA); Stochastic Frontier Analysis (SFA).

Application of Cluster Analysis in the Evaluation of Automotive Fuel Prices Marketed in Goiás

Objective: The aim of this study is to present economic indicators constructed through cluster analysis, aiming to identify which gas station brands offer the lowest overall fuel prices. Theoretical Framework: The increasing demand for low-cost products, particularly automotive fuels, is a constant in the Brazilian market, significantly impacting both the economy and consumers' daily lives. This scenario underscores the analysis of prices as a crucial tool for understanding market behavior. Method: Data were obtained from the open data portal of the National Agency of Petroleum, Natural Gas and Biofuels (ANP), focusing on the historical price series of regular gasoline, premium gasoline, and ethanol in the state of Goiás. Cluster analysis was employed to group eight gas station brands into three distinct clusters. Results and Discussion: Findings reveal that Rodoil offers the lowest overall fuel prices, whereas Alesat, Ciapetro, and Raízen have the highest overall prices. These discoveries provide valuable insights into the competitive dynamics of the fuel market in Goiás. Research Implications: The significant debates generated in society by the rising prices of gasoline, ethanol, and other products such as cooking gas and diesel underscore the urgent need to revise fuel pricing policies in the country. Originality/Value: This study contributes uniquely by applying cluster analysis to identify price patterns among different gas station brands, offering an innovative approach to understanding competitiveness in the fuel distribution sector in Goiás.

Lottery stocks in Brazil: investigating risk premium and investor behavior

PurposeThis study investigates the paradox of lotteries in financial markets, challenging traditional utility models predicated on rational behavior amid uncertainty. It explores why investors are drawn to lotteries despite the potential trade-off between risk-adjusted returns and sporadically substantial gains.Design/methodology/approachEmploying a multifaceted approach, the study first scrutinizes diverse theories elucidating the perplexing behavior of lottery investors. Subsequently, it assesses the premium attached to lottery stock shares in the Brazilian financial market using distinct methodologies, thereby offering a comprehensive analysis of this phenomenon. Finally, the study estimates the risk premium associated with the lottery stocks applying an extended Fama–French multifactor model and searching for evidence of overlap with other risk-based anomalies.FindingsThis research unveils theories underpinning seemingly irrational investor behavior vis-à-vis lotteries, revealing the motivations propelling investors to willingly exchange risk-adjusted returns for the allure of substantial but infrequent gains. Empirical evidence delineates the extent of the premium paid for lottery stocks in the Brazilian market.Originality/valueThe study’s novelty lies in its amalgamation of theoretical exploration, empirical analysis and the application of the Fama–French factor model to gauge the risk premium associated with lottery-related behavior. Furthermore, its investigation of lottery stocks within the Brazilian market introduces a distinctive dimension, elucidating market dynamics and investor behaviors unique to the region.

Assessment of Mobile Telephony User Satisfaction in the Federal District Through Structural Equation Modeling

Objective: To maintain competitiveness and profitability in the telecommunications sector, it is essential to assess customer satisfaction, as mobile telephony provides convenience and is widely available to the population. Theoretical Framework: The growing demand for low-cost products, especially automotive fuels, reflects a constant in the Brazilian market, significantly impacting the economy and consumers' daily lives. Method: The research was conducted using a questionnaire developed by Anatel to collect data on user satisfaction. The questionnaire items were grouped into four constructs: Perceived Quality, Expectations, Perceived Value, and Overall Satisfaction. Structural Equation Modeling was used to evaluate the relationships between these constructs and consumer satisfaction. Results and Discussion: The results indicate that Perceived Quality, Expectations, and Perceived Value have a significant impact on Overall Satisfaction. The rejected hypotheses suggest areas where consumer perceptions may not align with expectations or where certain factors may not have the anticipated influence on satisfaction. Research Implications: The results provide valuable insights for mobile telephony companies, highlighting the importance of improving perceived quality and aligning customer expectations with the perceived value of the service. Originality/Value: This study contributes to the understanding of factors affecting consumer satisfaction in the mobile telephony sector, with a detailed analysis applied to the Federal District context.

A quantitative comparison of viral and hit songs in the Brazilian music market

A viralização de músicas através de plataformas de streaming e redes sociais é comum, mas nem todas as músicas virais se tornam sucessos. Neste contexto, nosso objetivo é descobrir o que difere as músicas virais dos hits para além da definição. Nós utilizamos uma metodologia quantitativa em paradas de sucesso do mercado brasileiro. Comparamos músicas de sucesso e virais quanto às suas características intrínsecas e extrínsecas, e os resultados revelam diferenças significativas entre elas. Características como gêneros musicais, tópicos das letras e emoções surgem como elementos cruciais para distinguir tais canções no contexto brasileiro. Além disso, características temporais indicam diferenças nos processos de difusão entre hits e virais. Em geral, este estudo oferece percepções sobre o consumo de música no Brasil, revelando a conexão entre as características das músicas e seu sucesso e viralização em plataformas de streaming.

UHT A2 milks marketed in Brazil: Physicochemical and electrical characterization, rheological behavior and fatty acid profile

UHT A2 Milk offers a consumption alternative for consumers experiencing intestinal discomfort from consuming dairy products. A2 milk, derived from cows with the A2A2 genotype, does not promote the formation of betacasomorphin-7 (BCM-7). However, little is known about the comprehensive composition of this product, as well as its impact on physicochemical and electrical parameters. This study aimed to investigate potential physicochemical and chemical differences between UHT milk with the A2 β-casein genotype and conventional milk without A2 certification, sourced from brands available in the Brazilian market. Therefore, the physicochemical parameters, rheological behavior, electrical impedance, and fatty acid composition were evaluated. The results indicated that A2 milk had higher density, fat, protein, and total solids content compared to UHT milk without A2 certification. Furthermore, it obtained a higher electrical impedance modulus and lower admittance within the analyzed frequency range (1 kHz a 5 MHz). The UHT milk samples showed Newtonian fluid behavior at both temperatures analyzed (10 and 25 °C). Furthermore, the type of UHT milk (with and without A2 certification) did not significantly influence the absolute viscosity of the samples (p > 0.05) across both commercial brands and temperature. Overall, both types of milk had the same composition of fatty acids, with palmitic acid being the major compound. However, C12:0 and C18:1 cis-7 were more abundant in A2 milk. In this sense, the analytical methods used in this study were able to identify differences in macromolecules and compounds within the lipid fraction in the samples investigated. These analytes are suggested as potential identity markers to evaluate the authenticity of UHT bovine containing only beta-casein of the A2 genotype in its composition.

Portfolio resampling in the Brazilian stock market

Markowitz optimization plays a crucial role in modern portfolio theory. However, it is well known that Markowitz optimization is highly affected by estimation errors in the mean vector and covariance matrix, resulting in extreme and/or unrealistic portfolio weights, lack of diversification, and poor out-of-sample performance. In response to these challenges, Michaud and Michaud (1998) proposed a heuristic portfolio resampling approach aimed to deliver more diversified and better out-of-sample portfolio performance. This approach has received both criticism and praise among academics and practitioners, with the main critique being the unclear economic benefits of applying this method to empirical data. To contribute to this ongoing debate, our study assess the performance of the Michaud and Michaud (1998) portfolio resampling approach using data from the Brazilian stock market. Additionally, we evaluate whether a resampling approach based on factor structure can yield superior out-of-sample performance. Our findings indicate no evidence of superiority over Markowitz optimization, reinforcing criticisms of the portfolio resampling approach.

A new economic policy uncertainty index for Brazil

This study has created a novel economic policy uncertainty (EPU) index for Brazil by analyzing the frequency of news articles published by the country’s major news portals. The measurement proposed here is based on news from different news outlets, unlike the similar index previously available, extracted by a web-scraping procedure. This research also evaluated the role of EPU in its relationship with stock returns in the Brazilian market, comparing the new index with the one previously available. The new measure showed a negative relationship with the return in excess of the risk-free rate, similar to that found using the previously existing index, but with a greater magnitude. Furthermore, the explanatory power of the regression model is substantially greater when the proposed measure is used. In this way, the study contributes not only by deepening the understanding of the relationship between uncertainty and stock returns but also by serving as a methodological subsidy for future research focusing on EPU in the country.

Evolution of the Brazilian Consumer Market for Alcoholic Beverages in the XXI Century

Evolution of the Brazilian Consumer Market for Alcoholic Beverages in the XXI Century

Global Financial Factors and the COVID-19 Pandemic: What Drove the Degree of (In)Efficiency of the Brazilian Stock Market in the Recent Period?

Global Financial Factors and the COVID-19 Pandemic: What Drove the Degree of (In)Efficiency of the Brazilian Stock Market in the Recent Period?

Health risk assessment of potentially toxic elements in minerals-fortified milk and young child formula in Brazil

Exposure to potentially toxic elements above certain limits can cause adverse effects on human health, with young children being the most vulnerable. Then, the aim of this study was to determine, by inductively coupled plasma mass spectrometry (ICP-MS), the concentration of potentially toxic elements (Al, As, Cd, Hg, Ni, Pb, Sn, Ti, and U) in minerals-fortified milk (MFM) and young child formula (YCF) commercialized in Brazil and recommended for children aged 1–3 years. High concentrations (mg kg−1) were found in MFM and YCF, respectively, for Ti (21.1–23.7 and 8.62–25.7), Al (0.59–4.69 and 0.23–4.92), and Ni (0.66–2.89 and 1.09–1.59). Total As concentrations varied from 0.02 to 0.07 mg kg−1, Pb, Sn, Cd, and U were present at low concentrations and Hg was not detected in any sample. The target hazard quotient (THQ) and the target carcinogenic risk (TCR) were also determined, and almost all the THQ values were found below 1, except for Ni, indicating potential risk to children in two of the brands analyzed. The concentrations determined for total As were worrying because, if it was inorganic form, all analyzed samples would represent health and cancer risk, indicating the urgent need for updated protocols for As speciation and food monitoring in the Brazilian market. Thus, controlling the processing and increasing the monitoring of these products is essential to avoid adverse effects on children’s health in the short and long term.

Testing the algebraic modeling of competitive impacts from wage premium shocks: a case study from a booming airline market

Labor relations issues such as collective bargaining and strike threat power have recently gained increased attention in the Brazilian air transportation market due to a short-term shortage of qualified workforce, leading stronger pilot unions to demand higher wages and better working conditions. Exacerbated by the notable expansion of the Brazilian economy between 2020 and 2023, where air travel demand surged by 60%, this pressure has driven labor costs to grow more rapidly than other cost categories. This paper examines exogenous flight crew cost shocks, treating these as increases in wage premiums resulting from stronger unionization and higher labor market rents. Using a differentiated duopoly model, we analyze the impact of these wage increases on competition between a major network carrier and a small low-fare carrier, introducing the hypothesis of non-exhausted economies of density. Our findings indicate that smaller airlines are more adversely affected by labor cost shocks, though differentiated wage increase schemes can mitigate these impacts, reducing market concentration and preserving consumer welfare. This study contributes to the literature by incorporating wage premium shocks into existing models and suggesting that labor regulations in Brazil should be liberalized to address the rapid growth in air transportation demand and the resultant workforce shortage.