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Author: Andre Carvalhal
Publisher:
ISBN:
Category :
Languages : en
Pages : 17
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Book Description
This study investigates the effects of the corporate governance structure on market valuation and dividend payout of Brazilian companies. The empirical results indicate a high degree of ownership and control concentration. We can also note a significant difference between the voting and total capital owned by the largest shareholders, mainly through the existence of non-voting shares, pyramidal structures, and shareholding agreements. These mechanisms seem to be used by controlling shareholders to keep the firm's control without having to own 50% of the total capital. The evidence also reveals that there is a relationship between governance structure, market valuation, and dividend policy in Brazil.
Author: Andre Carvalhal
Publisher:
ISBN:
Category :
Languages : en
Pages : 17
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Book Description
This study investigates the effects of the corporate governance structure on market valuation and dividend payout of Brazilian companies. The empirical results indicate a high degree of ownership and control concentration. We can also note a significant difference between the voting and total capital owned by the largest shareholders, mainly through the existence of non-voting shares, pyramidal structures, and shareholding agreements. These mechanisms seem to be used by controlling shareholders to keep the firm's control without having to own 50% of the total capital. The evidence also reveals that there is a relationship between governance structure, market valuation, and dividend policy in Brazil.
Author: Alberto Chong
Publisher: World Bank Publications
ISBN: 0821369148
Category : Business & Economics
Languages : en
Pages : 584
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Book Description
'Investor Protection and Corporate Governance' analyzes the impact of corporate governance on firm performance and valuation. Using unique datasets gathered at the firm-level the first such data in the region and results from a homogeneous corporate governance questionnaire, the book examines corporate governance characteristics, ownership structures, dividend policies, and performance measures. The book's analysis reveals the very high levels of ownership and voting rights concentrations and monolithic governance structures in the largest samples of Latin American companies up to now, and new data emphasize the importance of specific characteristics of the investor protection regimes in several Latin American countries. By and large, those firms with better governance measures across several dimensions are granted higher valuations and thus lower cost of capital. This title will be useful to researchers, policy makers, government officials, and other professionals involved in corporate governance, economic policy, and business finance, law, and management.
Author:
Publisher:
ISBN:
Category :
Languages : pt-BR
Pages :
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Book Description
O tema da Governança Corporativa vem ganhando importância recente paraorganizações e pesquisadores mundialmente. Nele, as corporações são analisadascomo uma estrutura de governança, nas quais destacam-se as relações decorrentesda separação entre propriedade e gestão. No Brasil, a partir das mudançasestruturais ocorridas a partir do início dos anos 90, relacionadas à aberturacomercial, aos processos de privatização e estabilização monetária da economia, novos agentes ganharam relevo no cenário nacional, engendrando novas formasde governança corporativa. Observam-se mudanças no controle societário dascorporações no país, tendo como acionistas principalmente investidoresinstitucionais e externos. O propósito deste estudo é verificar se a adoção depráticas de governança corporativa traz benefícios concretos para companhiasabertas no Brasil, especificamente: a transparência e as características doConselho de Administração das companhias abertas no Brasil influenciam o valore o custo de capital próprio destas empresas? Foi realizada uma pesquisadescritiva, documental e bibliográfica, na qual buscou-se verificar se existe umarelação estatística significativa entre variáveis independentes, associadas àtransparência e a características de controle atribuídas ao Conselho deAdministração, e variáveis dependentes, associadas ao valor e ao custo de capitalpróprio. Para tal, utilizou-se um modelo estatístico de regressão linear múltiplacom 95% de nível de confiança aplicado a uma amostra das companhias abertasno Brasil com liquidez significativa no ano de 2004. Apesar de não seremconclusivos, os resultados apontam no sentido proposto pelos códigos demelhores práticas de governança corporativa existentes.
Author:
Publisher:
ISBN:
Category :
Languages : pt-BR
Pages :
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Surgido incialmente na Inglaterra e EUA, o movimento de governança corporativa ganhou repercussão considerável na última década em função da pressão crescente de investidores e acionistas minoritários por maior transparência na divulgação de informações. No Brasil, só muito recentemente, o tema vem atraindo a atenção de empresas, estudiosos e investidores como consequência emgrande parte da necessidade de profissionalização das companhias com o processo de privatização de estatais e globalização. A partir de uma amostra de 145 empresas brasileiras não financeiras listadas em bolsa em 2002, o estudo busca verificar se existe uma relação estatisticamente significante entre os padrões de governança corporativa observados nas empresas brasileiras e seus respectivos valores de mercado e desempenho, particularmente, através da utilização de uma modelagem estatística de regressão múltipla linear. Os resultados revelam que os modelos propostos são válidos estatisticamente com um nível de confiança de 95% e que a estrutura de governança corporativa influencia desempenho e valor de mercado de forma distinta.
Author: Alexandre Di Miceli da Silveira
Publisher:
ISBN:
Category :
Languages : en
Pages : 33
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Book Description
This paper investigates the influence of corporate governance quality on market value of 154 Brazilian listed companies in 2002. In order to obtain a proxy for corporate governance quality, a broad governance index was built. The investigation was carried out by different econometric approaches in increasing order of complexity, including multiple regressions by Ordinary Least Squares (OLS), instrumental variables approach and systems of simultaneous equations. The results obtained in all econometric approaches show a positive and significant influence of corporate governance quality on firm's market value. OLS results with market value variables Tobin's Q and PBV multiple suggest that, ceteris paribus, a worst-to-best change in governance quality would result in a market capitalization increase of around 85% and 100%, respectively. The paper also finds evidence of corporate governance variable endogeneity and proposes different instruments for estimation by instrumental variables approach. Moreover, results by simultaneous equation approach indicate a relation of reverse causality between corporate governance quality and firm valuation.
Author: Ricardo P. C. Leal
Publisher:
ISBN:
Category :
Languages : en
Pages : 77
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Book Description
We construct a corporate governance practices index (CGI) from a set of 24 questions that can be objectively answered from publicly available information. Our goal was to measure the overall quality of corporate governance practices of the largest possible number of firms without the biases and low response ratios typical of qualitative surveys. CGI levels have improved over time in Brazil. CGI components demonstrate that Brazilian firms perform much better in disclosure than in other aspects of corporate governance. We find very high concentration levels of voting rights leveraged by the widespread use of indirect control structures and non-voting shares. Control has concentrated between 1998 and 2002. We do not find evidence for either entrenchment or incentives in Brazil using ownership percentages but find that the separation of control from cash flow rights destroys value. The CGI maintains a positive, significant, and robust relationship with corporate value. A worst-to-best improvement in the CGI in 2002 would lead to a .38 increase in Tobin's q. This represents a 95% rise in the stock value of a company with the average leverage and Tobin's q ratios. Considering our lowest CGI coefficient, a one point increase in the CGI score would lead to a 6.8% rise in the stock price of the average firm in 2002. We found no significant relationship between governance and the dividend payout but there are indications that dividend payments are greater when control and cash flow rights concentration are greater. We place our results in context by offering a comparative analysis with Chile. We would offer a sound quot;yesquot; if asked whether good corporate governance practices increase corporate value in Brazil.
Author: Vicente Lima Crisóstomo
Publisher:
ISBN:
Category :
Languages : en
Pages : 17
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The paper analyzes whether nonfinancial firms as large blockholders of the Brazilian firm shape dividend policy. Under the Agency Theoretical framework, a set of good corporate governance practices is suggested as able to control management activity and prevent managers from incurring in moral hazard problems and the emergence of excessive management power as predicted by the Managerial Power Hypothesis. In this context, the Management Monitoring Hypothesis proposes that dividend policy may be used as a management control mechanism given that dividend distribution affects the free cash flow available for managers. Dividend models were estimated by the Generalized Method of Moments (GMM) for an unbalanced panel data, composed of 1.890 firm-year observations of 234 companies listed on the BM&FBovespa, in the period 1996-2012. The results indicate that nonfinancial firms as large shareholders increase dividend payout which leads to the reduction of free cash flow. This result is in accordance with the monitoring hypothesis which predicts the reduction of free cash flow available for managers through dividend policy.
Author: Alexandre Di Miceli da Silveira
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Related Party Transactions (RPTs) are operations with high potential for conflict of interests between shareholders and managers or between controlling and minority shareholders. In environments characterized by concentrated ownership structures, such as in Brazilian, such transactions could be used as a way for reaping private benefits of control by controlling shareholders. This paper undertakes this issue from both legal and empirical point of view. On the legal side, we survey the legal strategies currently employed in Brazil by regulators and self-regulatory bodies aiming at to avoid the problems from the inherently conflict of interests present in such dealings. On the empirical side, we analyze the RPTs reported by all Brazilian companies listed at Bovespa's corporate governance special listing segments in 2006. We also analyze the relation between the use of RPTs and proxies for corporate governance quality, as well as the relation between RPTs and firm market value. As the main qualitative result from our legal survey, we observe that Brazilian legal system makes use of two main legal strategies: definition of expected standards with ex-post analysis, and mandatory disclosure of relevant RPTs. From our quantitative analyses, three results stand out: RPTs are significant and frequent among Brazilian listed companies, there's a negative association between the use of RPTs and corporate governance quality, and there's a negative association between RPTs and firm market value. Overall, the empirical results provide evidence that RPTs are a signal for conflicts of interests taking place, rather than efficient business transactions.
Author: Pablo Rogers
Publisher:
ISBN:
Category :
Languages : en
Pages : 27
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Book Description
The literature indicates that, mainly in countries with high stock concentration, the ownership structure is an important internal mechanism of control of the corporate governance, with effects in the companies' value and performance. In Brazil, the existing relationship among corporate governance - ownership structure - performance is still not conclusive. The present study investigates if there is any relationship among ownership structure, financial performance and value in the Brazilian non-financial public companies with stocks negotiated in the Satilde;o Paulo Stock Exchange, between the period of 1997 to 2001, as well as the determinant of the level of concentration of the ownership in these companies. In the empiric investigation it was used a multiple regression analysis through the estimators of the Ordinary Least Squares with heteroscedasticity in accordance with White (1980). Concerning the used methodology, the results indicate that the variables of ownership structure as defined do not have influence on the financial performance and value of the companies. Remaining to the determinant of the ownership structure of the Brazilian non-financial public companies, the results indicate that the ownership structure can be explained by the size of the firm, market instability and regulation, being the latter the main determinant of the ownership structure.
Author: Pedro Matos
Publisher:
ISBN: 9781942713388
Category :
Languages : en
Pages :
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