Effect of economic and monetary freedom indices on the value of consumer sector companies in Brazil

Abstract

The aim of the article was to estimate the effect of freedom indices and macroeconomic variables on the value of companies of the consumer sector in Brazil. The main contribution was to broaden the discussion around decision-making by managers considering the social, political, and economic situation of a country, which is portrayed in the freedom indices. The panel data method was used, which allowed us to define two equation models that were estimated by generalized least squares-GLS. The results indicate that economic and monetary freedom indicators exert greater influence on a firm's value; thus, decisions made in the business environment should consider them.