The firm–investor level characteristics of institutional investor engagement in Brazil

Maranho, Flávia Schwartz; Bortolon, Patrícia Maria; Leal, Ricardo P. C.

doi:10.1057/s41310-020-00095-w

Cited by 3 publications

(3 citation statements)

References 38 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The small number of activism campaigns in Brazil imposes limitations on quantitative analyses of the impacts of shareholder activism, especially if the intention is to examine a specific type of investor, as in this article (Maranho et al, 2020;Collares, 2020;Vargas et al, 2018). Thus, the study of cases is interesting because it can complement quantitative studies and their results, helping to elucidate apparent contradictions.…”

Section: Methodsmentioning

confidence: 99%

“…Collares (2020) claims that there was no impact of activism on company performance and that companies with fewer independent directors were targeted more often. Maranho et al (2020) found little impact of institutional investors on the quality of CG practices of investee companies by means of an activism index that considered each investor-investee pair. They found that holding a board seat and being a signatory of the shareholders' agreement was actually associated with worse CG practices when they examined each scoring component of their index.…”

Section: Literature Reviewmentioning

confidence: 97%

“…The low activism of institutional investors in Brazil suggests that maybe these and other factors, such as ownership concentration, ineffective institutions, and portfolio diversification motivations, prevent it (de Almeida & Leal, 2020; Vargas, Bortolon, Barros, & Leal, 2018; Sonza & Granzotto, 2018;Pereira & Leal, 2018). Finally, the difficulty to empirically verify a relationship between activism and CG can be attributed to the limitations of the methods and data employed in quantitative studies, particularly in Brazil (Maranho et al, 2020;Collares, 2020;Becht, Franks, Mayer, & Rossi, 2009;Gillan & Starks, 2007).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Principal-principal conflicts leading to activism of a large government-owned investor in Brazil

Duarte

Leal

2021

CGOBR

View full text Add to dashboard Cite

This article analyzes conflicts between principals that led to activism by one large Brazilian government-owned investor as a minority shareholder and verifies the antecedents, means employed, apparent motivations, and effectiveness of its reactions (Goranova & Ryan, 2014). It examines the cases of three large high ownership concentration listed companies using solely public sources. Poor performance was a frequent conflict antecedent. No evident trade-off between activism and corporate governance (CG) practices emerged. High ownership concentration influenced the way the investor reacted and its success because opposition through internal CG mechanisms was usually not successful and led to legal proceedings. The limitations of the regulatory framework became evident from the mixed outcomes of these proceedings. The investor was not exclusively financially motivated and it occasionally opposed the interests of other minority shareholders to follow government policy. These findings illustrated how high ownership concentration rendered difficult the mitigation of principal-principal conflicts even for a large government-owned investor and help explain the failure of previous econometric studies to relate activism, quality of CG practices and performance (Young, Peng, Ahlstrom, Bruton, & Jiang, 2008)

show abstract

Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 97%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Principal-principal conflicts leading to activism of a large government-owned investor in Brazil

Duarte

Leal

2021

CGOBR

View full text Add to dashboard Cite

show abstract

Corporate governance and the internationalisation of African firms: An institutional investor perspective

Anderhofstadt,

Wesson,

Viviers

2024

Int J Discl Gov

View full text Add to dashboard Cite

The aim of this study was to investigate the impact of corporate governance on the internationalisation of African firms from the perspective of institutional investors. While African firms have significantly expanded their international operations over the past two decades, international business literature has not given the related corporate governance aspects enough attention. In particular, the complex interaction between firm-level corporate governance mechanisms and country-level corporate governance systems has considerable implications for the value creation of internationalisation strategies. To address this research gap, semi-structured interviews were conducted with 24 senior decision-makers of institutional investors operating in South Africa, Botswana, Zambia, Mauritius, Ghana, and Nigeria to gain an unprecedented view of the internationalisation of African firms. Based on the findings of the thematic analysis, this study developed a theoretical framework of high practical relevance that combines the concepts of corporate governance and internationalisation in the dynamic and diverse African context. The study further provides novel insights into the cultural dimension of corporate governance by demonstrating that the outcome of corporate governance practices depends on cultural norms and values across a multinational firm’s international operations.

show abstract

Activism failure of state-owned pension funds with board seats in Brazil

Almeida

Leal

2020

View full text Add to dashboard Cite

There is no clear positive and significant impact of institutional investor activism in Brazil possibly due to lack of skills, portfolio diversification motivations (Sonza & Granzotto, 2018), and conflicts of interest (Maranho, Leal, & Bortolon, 2020). This article investigates two high profile activism cases to assess these conjectures and address two very large and widely held Brazilian companies, which had good corporate governance indicators and were not state-controlled or closely regulated. The cases involve the two largest Brazilian pension funds, both sponsored by state-owned companies because their size and importance would make a positive outcome more likely. Yet, in both cases, the pensions funds failed in their attempts, even when acting jointly with other foreign and domestic institutional investors. The conclusion suggests that these investors may lack skills to assess the likelihood and consequences of events that occurred soon after their investment and that changed the fundamental nature of their investees. This study places the lack of activism success under the general discussion of the challenge of costly active versus passive portfolio management. Finally, there was no evidence of conflicts of interest and political alignment of these state-related pension funds in these two activism situations

show abstract

The firm–investor level characteristics of institutional investor engagement in Brazil

Cited by 3 publications

References 38 publications

Principal-principal conflicts leading to activism of a large government-owned investor in Brazil

Principal-principal conflicts leading to activism of a large government-owned investor in Brazil

Corporate governance and the internationalisation of African firms: An institutional investor perspective

Activism failure of state-owned pension funds with board seats in Brazil

Contact Info

Product

Resources

About