State ownership and governance
DOI:
https://doi.org/10.5007/2175-8069.2021.e76019Abstract
Considering the challenges for governance arising from the presence of the state as a shareholder in Brazilian companies, this study sought to investigate the effect of state ownership on corporate governance, using data from a sample of 234 Brazilian public companies between 2010 and 2016. Two governance indices were created (ratio and factorial), contemplating 12 aspects of governance for each company for each year, which is the innovation offered by this paper. The data were obtained from the Brazilian Securities and Exchange Commission (CVM) and regression analysis with unbalanced panel data using the GMM-Sys model was adopted. We found that the presence of the state as a shareholder had a negative effect on the Corporate Governance Index (IGC) of public companies, that is, state ownership was associated with a lower quality of governance.
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