Corporate governance, stock market and economic growth in Brazil

Abstract

Literature points that the development of the stock market depends on the introduction of good practices of corporate governance, what in its own would make the country economic growth more dynamic. This work aims to investigate to which extent the institution of better practices of corporate governance is related to the economic growth. To reach the objective, it were performed comparative sensibilities analysis of the Index of Corporate Governance (IGC) and of the Ibovespa (São Paulo’s Stock Exchange Index) in relation to the macroeconomic variables present in the literature that influence the most the national stock market, including one proxy of the real economic growth. In methodological terms, it was developed a quantitative descriptive research: it were estimated models in differences by the use of the Ordinary Least Squares Method (OLS) and models in quasi-differences by the use of the Feasible Generalized Least Squares Method (FGLS). By the methodology adopted there are evidences that companies who adopt better practices of corporate governance have better performances (collect more benefits) in the economic growth cycle than those companies that do not adopt them.

Still on board configuration: SEC recommendations and the efficiency of adhering firms in Nigeria

“…Interestingly, this approach was equally consistent with those adopted in previous studies (e.g. Rogers et al 2008). The second post-diagnostic analysis, the Theil inequality coefficient forecast test was conducted to determine the reliability and predictive accuracy of the models across the three multidimensional performance measures (i.e.…”

Firm ownership and internationalisation: is it context that really matters?

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Corporate Governance, Iran Stock Market andEconomic Growth

“…Teixeira [6] strengthens that the economic development is determinant of the development of the Brazilian stock market, and a developed stock market only occurs through the search for a sustainable standard of economic growth. Rogers, Ribeiro, Securato [7], they work had for objective to test the sensitivity of the companies who adopt practices of corporate governance, measured by the Index of Corporate Governance (IGC) of the Sã o Paulo Stock Exchange, in relation to the economic growth, comparatively to the sensitivity of those companies who do not adopt them. In general, the study found evidences on the inter-relationship between economic growth, stock market and corporate governance in Brazil.…”