Evolution of the quality of the practical of corporate governance: a study of nonlisted the Brazilian companies in stock exchange



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Moisés Araújo Almeida
Joséte Florencio dos Santos
Lúcio Flávio Vieira de Medeiros Ferreira
Fernando José Vieira Torres

Abstract

This article analyzes the evolution of the quality of corporate governance practices by Brazilian companies that are non listed on the stock exchange from 2003 through 2007. The data were collected through System DIVEXT of the CVM. As a proxy for determining the quality of corporate governance practices, the Corporate Governance Index of the Brazilian Companies Unlisted on Stock Exchange was used, calculated from a set of 14 binary and objective questions. The results of the research show that half of the companies under study had a good level of governance. Concerning the Transparency dimension, the findings showed that there had been an improvement in the drafting of financial reports and that legal deadlines were being met. Furthermore, approximately half of the companies had contracted some form of global auditing. In the Composition and Functioning of Advice there were no signs of improvement, due to less concern over demands concerning the number of members, independence and length of mandate. The results of the Structure of Control and Behavior show that the vast majority of the companies had no agreements between shareholders. This is a positive improvement in good governance practices.

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How to Cite
Almeida, M. A., Santos, J. F. dos, Ferreira, L. F. V. de M., & Torres, F. J. V. (1). Evolution of the quality of the practical of corporate governance: a study of nonlisted the Brazilian companies in stock exchange. Journal of Contemporary Administration, 14(5), 907-924. https://doi.org/10.1590/S1415-65552010000500009
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