Determinants of Corporate Governance Practices in Brazil: 2010 to 2014

26 Pages Posted: 1 Jul 2019

See all articles by Antonio Gledson De Carvalho

Antonio Gledson De Carvalho

Fundacao Getulio Vargas School of Business at Sao Paulo

Filipe Dal'Bó

Sao Paulo School of Business Administration, Students

Joelson Oliveira Sampaio

Getulio Vargas Foundation (FGV), Sao Paulo School of Economics, Students

Date Written: June 30, 2019

Abstract

We study the determinants of corporate governance (CG) practices in Brazil between 2010 and 2014. We build CG subindices for Board Structure, Board Procedures, Minority Shareholders Rights, and Disclosure, and an overall CG index, BCGI, computed as the average of these four subindices. During our sample period, CG practices changed significantly: improvement was stronger among firms in the High- than Low-requirement listings. Tangibility and Liquidity are the only two variables predict CG practices with some consistency. We find no evidence that Tobin’s q predicts CG practices. This last result lowers the possibility of reverse causation in analyses that use CG practices as determinant of firm value.

Keywords: Brazil, corporate governance, governance indices

JEL Classification: G18

Suggested Citation

De Carvalho, Antonio Gledson and Dal'Bó, Filipe and Sampaio, Joelson Oliveira, Determinants of Corporate Governance Practices in Brazil: 2010 to 2014 (June 30, 2019). Available at SSRN: https://ssrn.com/abstract=3412583 or http://dx.doi.org/10.2139/ssrn.3412583

Antonio Gledson De Carvalho

Fundacao Getulio Vargas School of Business at Sao Paulo ( email )

R. Itapeva, 474 - 7o. andar
Sao Paulo 01313-902
Brazil
+5511 3281-7767 (Phone)

Filipe Dal'Bó

Sao Paulo School of Business Administration, Students ( email )

Sao Paulo
Brazil

Joelson Oliveira Sampaio (Contact Author)

Getulio Vargas Foundation (FGV), Sao Paulo School of Economics, Students ( email )

Rua Itapeva 474 s.1202
São Paulo
Brazil

HOME PAGE: http://eesp.fgv.br/

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