38024

Ricardo Pereira Câmara Leal
André L. Carvalhal
Ana Paula Iervolino

Revista Brasileira de Finanças

This study presents the evolution of certain corporate governance practices of listed Brazilian companies from 2004 to 2013 gathered in an index (CGI). Results indicate that the overall quality of these practices improved, notably after the creation of voluntary membership exchange trading lists that require better corporate governance and disclosure practices. The average CGI score of 5.8 (out of 10.0) in 2013 may be considered low and points to the need for further improvement. Moreover, firms score very low in the ethics and conflicts of interest aspects of the CGI, when compared to its disclosure, board composition and functioning, and shareholders rights components. The very small number of firms that ban loans to related parties and that facilitate participation in the shareholder meetings is a concern. The decrease in the use of control enhancement mechanisms, such as non-voting shares and indirect control structures, was a remarkable achievement. Even so, shareholder agreements are increasingly used as instruments to interfere with director independence and leverage the controlling bloc power.

board of directors, Brazil, conflicts of interest, corporate governance index, disclosure, shareholder rights

LEAL, R. P. C.; CARVALHAL, A.; IERVOLINO, A. P. One Decade of Evolution of Corporate Governance Practices in Brazil . Revista Brasileira de Finanças, v. 13, n. 1, p. 134-161, 2015.

Leal, R. P. C., Carvalhal, A., & Iervolino, A. P. (2015). One Decade of Evolution of Corporate Governance Practices in Brazil . Revista Brasileira de Finanças, 13(1), 134-161.

https://www.spell.org.br/documentos/ver/38024/one-decade-of-evolution-of-corporate-governance-practices-in-brazil-/i/en

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