(How) Does Self-Regulation Work? Evidence from Brazilian Corporate Governance Listing Segments

Donaggio, Angela Rita Franco

doi:10.2139/ssrn.3198201

Cited by 2 publications

(7 citation statements)

References 49 publications

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“…Launched in 1997, it was called the Neuer Market and focused on medium and small-sized companies, requiring better disclosure standards than for other companies. Comparing the German listing segment with those of other European countries, Donaggio (2017) affirms that its rules were considered more rigid and, at the same time, the most successful. In a consultation carried out of the German stock exchange (Deutsche Börse) in October of 2020, the German market had a total of 495 listed companies, 303 (61%) of which formed part of the highest governance segment.…”

Section: Regulation In Brazil and Around The Worldmentioning

confidence: 65%

“…The Brazilian market is primarily regulated by the State; however, since the start of the 21 st century, the share of private regulation has grown (Donaggio, 2017). In 2001, the B3 created three special listing segments, Level 1, Level 2, and New Market, which present increasing requirements for corporate governance practices.…”

Section: Regulation In Brazil and Around The Worldmentioning

confidence: 99%

“…The Brazilian model has been largely based on the German one (Donaggio, 2017). Launched in 1997, it was called the Neuer Market and focused on medium and small-sized companies, requiring better disclosure standards than for other companies.…”

Section: Regulation In Brazil and Around The Worldmentioning

confidence: 99%

“…Despite various studies indicating positive consequences of listing in the differentiated segments (Silva & Leal, 2005;Gonzalo & Silva, 2009;Procianoy & Verdi, 2009;Silveira et al, 2004), there are criticisms of some rules and the need for greater enforcement. By analyzing the notifications and fines applied by the B3 when carrying out the role of regulator, however, Donaggio (2017) identifies that the self-regulation model in Brazil can be considered successful. The author also shows that, over time, alterations have been made in the rules of the listing segments in order to improve their efficiency.…”

Section: Regulation In Brazil and Around The Worldmentioning

confidence: 99%

See 3 more Smart Citations

Factors associated with the non-migration to the New Market of companies of the one share, one vote type,

Sella¹,

Bortolon

2022

Rev. contab. finanç.

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This study aimed to understand which characteristics and listing rules relate with non-migration to the New Market (Novo Mercado) segment in companies that already obey the “one share, one vote” principle. The study sought to understand which governance characteristics, as well as the one share, one vote principle, represent challenges to listing in the New Market. Given the benefits of adhesion to the New Market shown in the literature and the existence of companies in the traditional segment that already meet one of the challenges to migration, namely the use of shares with only voting rights, the relevance of the study lies in showing which other governance characteristics may represent challenges to migration. The study indicates to regulators and markets which governance characteristics may represent challenges to adhesion to higher segments. This understanding may influence strategies for promoting better practices aimed at overcoming resistances to these governance rules. For the literature, the results show characteristics that warrant additional studies as they represent adoption challenges for companies. We chose the companies from the traditional segment that already have only common shares and with propensity score matching we chose comparable companies from the New Market. We observed variables related to the other New Market rules, ownership structure, pyramid structures, shareholder agreements, and the score in a comprehensive corporate governance index. The analyses involved descriptive statistics, differences of means and proportions tests, and logit models. The results show that the free float and minimum tag along rules have a strong relationship with the non-listing in the New Market of companies that already fulfill the one share, one vote rule. In addition, ownership concentration and corporate governance quality are also related to non-listing in the New Market.

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Section: Regulation In Brazil and Around The Worldmentioning

confidence: 65%

Section: Regulation In Brazil and Around The Worldmentioning

confidence: 99%

Section: Regulation In Brazil and Around The Worldmentioning

confidence: 99%

Section: Regulation In Brazil and Around The Worldmentioning

confidence: 99%

See 2 more Smart Citations

Factors associated with the non-migration to the New Market of companies of the one share, one vote type,

Sella¹,

Bortolon

2022

Rev. contab. finanç.

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show abstract

“…O mercado brasileiro é regulado principalmente pelo Estado, porém, desde o início do século XXI, vem crescendo a participação da regulação privada (Donaggio, 2017). Em 2001, a B3 criou três segmentos especiais de listagem, Nível 1, Nível 2 e Novo Mercado, que apresentam exigências crescentes de práticas de governança corporativa.…”

Section: Regulação No Brasil E No Mundounclassified

Fatores associados à não migração para o Novo Mercado de empresas do tipo uma ação - um voto,

Sella¹,

Bortolon

2022

Rev. contab. finanç.

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RESUMO O objetivo desta pesquisa foi entender quais características e regras de listagem se relacionam com a não migração para o segmento do Novo Mercado em empresas que já obedecem ao princípio “uma ação - um voto”. A pesquisa busca entender quais características de governança, além do princípio uma ação - um voto, representam desafios à listagem no Novo Mercado. Dados os benefícios da adesão ao Novo Mercado mostrados na literatura e a existência de empresas no segmento tradicional que já atendem a um dos desafios à migração, qual seja, o uso de ações somente com direito a voto, a relevância do estudo reside em mostrar quais outras características de governança podem representar desafios à migração. O estudo sinaliza para reguladores e mercados quais características de governança podem representar desafios à adesão de segmentos superiores. Esse entendimento pode influenciar estratégias para a promoção de melhores práticas visando à superação de resistências a essas regras de governança. Para a literatura, os resultados mostram características que merecem estudos adicionais na medida em que representam desafios de adoção pelas empresas. Foram selecionadas as empresas do segmento tradicional que já têm apenas ações ordinárias e com o propensity score matching foram selecionadas empresas comparáveis do Novo Mercado. Foram observadas variáveis relacionadas às demais regras do Novo Mercado, estrutura de propriedade, estruturas piramidais, acordos de acionistas e a pontuação em um índice amplo de governança corporativa. As análises envolveram estatísticas descritivas, testes de diferença de médias e proporções e modelos logit. Os resultados mostram que as regras de free float e tag along mínimo têm forte relação com a não listagem no Novo Mercado de empresas que já cumprem a regra uma ação - um voto. Além disso, a concentração de propriedade e a qualidade da governança corporativa também estão relacionadas à não listagem no Novo Mercado.

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(How) Does Self-Regulation Work? Evidence from Brazilian Corporate Governance Listing Segments

Cited by 2 publications

References 49 publications

Factors associated with the non-migration to the New Market of companies of the one share, one vote type,

Factors associated with the non-migration to the New Market of companies of the one share, one vote type,

Fatores associados à não migração para o Novo Mercado de empresas do tipo uma ação - um voto,

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