Determinants of the level of corporate governance in brazilian public firms of consumption cyclic industry of BM&FBOVESPA

Abstract

The study propose to investigate, from a ranking of corporate governance, which characteristics determine the adoption of corporate governance mechanisms by publicly traded companies listed on the BM&FBovespa that make up the cyclical consumption industry. The research is characterized as descriptive and quantitative approach. The sample consists of 62 companies that make up the cyclical consumption industry of BM&FBovespa. The analysis included the year 2011. We calculated four indexes of corporate governance: the board of directors, investor relations, audit, and a general index, obtained by averaging the first three indexes. The evidences indicate that the presence of institutional investors negatively influence the adoption of governance mechanisms linked to the board. Indicate that the investment opportunity positively influences the adoption of attributes investor relations and growth opportunity, audit attributes. The size and degree of intangibility positively influence the corporate governance index. We conclude that different characteristics of different forms influence the corporate governance of firms and the intangibility degree is the most significant variable in determining the levels of Corporate Governance.