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Does good corporate governance pay off in the long-run? Evidence from stock market segment switches in Brazil

Brazilian Review of Finance

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Title Does good corporate governance pay off in the long-run? Evidence from stock market segment switches in Brazil
Governança corporativa compensa no longo prazo? Evidência a partir de mudanças no segmento no mercado acionário brasileiro
 
Creator Moura, Luiz; Getulio Vargas Foundation
Norden, Lars; Getulio Vargas Foundation
 
Subject Business
Financial Markets; Corporate Governance; Emerging Markets
G10; G14; G30
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Description We investigate the long-run effects of higher standards of corporate governance in the stock market. We consider Brazilian firms that switched from the traditional segment to the Nível 1, Nível 2 or Novo Mercado since 2000. We document that higher standards of governance result in significantly higher abnormal stock returns in the long run, controlling for firm and time fixed effects. The positive impact increased after the Global Financial Crisis, market microstructure has improved, and the market impact is stronger for financially healthy firms. Evidence suggests that committing to higher standards of corporate governance paid off for Brazilian firms in the long run.
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Publisher Link to the Brazilian Society of Finance
 
Contributor —
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Date 2019-11-05
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Double blind reviewed articles
Empirical
Avaliado por Pares
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Format application/pdf
 
Identifier http://bibliotecadigital.fgv.br/ojs/index.php/rbfin/article/view/79874
10.12660/rbfin.v17n3.2019.79874
 
Source Brazilian Review of Finance; Vol 17, No 3 (2019): July-September; 1-25
Revista Brasileira de Finanças; Vol 17, No 3 (2019): July-September; 1-25
1984-5146
1679-0731
 
Language eng
 
Relation http://bibliotecadigital.fgv.br/ojs/index.php/rbfin/article/view/79874/77111
 
Rights Copyright (c) 2019 Brazilian Review of Finance