Analysis of the compliance of Brazilian firms with good corporate governance practices

Abstract

Analysis of the compliance of Brazilian firms with good corporate governance practices Análisis del cumplimiento de las empresas brasileñas a las buenas prácticas de gobierno corporativoAnálise do compliance das empresas brasileiras às boas práticas de governança corporativa Abstract Purpose: Studies report that the adoption of good corporate governance practices tends to improve firm value. However, the results of such adoption seem to be conditioned by specific institutional and legal characteristics of each country. This study aims to analyze compliance with good corporate governance practices in the context of publicly traded companies in the Brazilian market. Methodology:The sample is made up of 1336 annual observations of 167 companies listed on the B3 (Brasil, Bolsa, Balcão) in the period 2010-2017. The practices recommended by the main corporate governance codes in Brazil were used as benchmark. Tests for the difference Vicente Lima Crisóstomo, Aline Maria Coelho Girão Revista Ambiente Contábil-UFRN -Natal- RN. v. 11, n. 2, p. 40 -64, Jul./Dez. 2019, ISSN 2176 in means (t-test) and in proportions (z-test) were used to compare the observed situation in the group of firms and the recommendations in the Brazilian market.Results: Despite the adoption of many of the best practices recommended, there is still space for advancement in the Brazilian firm corporate governance. The results indicate noncompliance of the Brazilian firm with the recommendations regarding the audit committee and fiscal council, which may particularly weaken transparency and control of firm's internal activities. In addition, adherence to distinguished market segments is associated to a greater trend to observe the suggestions emanating from the codes, which may be due to the perception of a favorable cost-benefit ratio of the adoption of corporate governance practices. Contributions of the Study:The work provides additional contribution by presenting a detailed analysis of the current scenario of the Brazilian firm corporate governance captured from the evaluation of the degree of adoption of each practice recommended individually. ResumenObjetivo: La literatura indica que la adhesión a las buenas prácticas de gobierno corporativo agrega valor a la empresa. Sin embargo, los resultados de tal adhesión parecen estar condicionados a características institucionales y legales específicas de cada país. Este trabajo tiene como objetivo analizar el cumplimiento de las buenas prácticas de gobierno corporativo en el contexto de las compañías de capital abierto en el mercado brasileño.Metodología: La muestra está compuesta por 1336 observaciones anuales de 167 empresas cotizadas en la B3 (Brasil, Bolsa, Balcão) en el período 2010-2017. Se ha utilizado como referencia las recomendaciones de los principales códigos de gobierno corporativo existentes en Brasil. Se ha hecho prueba de comparación de media (test t) y de proporción (prueba z) entre lo observado en el conjunto de empresas y las recomendaciones en el mercado brasileño.Resultados: A pesar ...

Relationship between Corporate Sustainability and Compliance with State-Owned Enterprises in Central-Europe: A Case Study from Hungary

“…However, the full content of these cannot be covered by normative rules, and therefore, in the case of state-owned enterprises, ownership, control and the company's chief executive officer have a key role to play. This is also to be emphasized because the specific methods and rules of risk management applicable in a given organization cannot be determined by the legal regulators [38] and must always be adapted to the specific eligibility criteria of the organization concerned. In this process, the commitment of the leader of the organization to ensuring compliance is of paramount importance.…”