Abstract
This paper aims to study the influence of Corporate Governance practices in the institutional decision to invest. It was developed a Governance Index (iGov), a descending rank was prepared and a test was applied to check if the companies in the first 25% of this rank have the highest number of institutional investors among their biggest investors than the companies of the last 25%. For the validation of IGov it was tested if the companies with the best marks present highest Returns, lowest Capital Cost, highest Market Value, and highest Competiveness within the sector, lowest Beta, highest EVA® and lowest Share concentration. It has been proved that the best Corporate Governance practices do not have any statistical relation with the presence of more Institutional Investor.
Subject
General Business, Management and Accounting
Reference33 articles.
1. ADR.com: The Central Source for DR Information. Available on: . Last access Sept, 24 2008 Accessed on: 24 Sep, 2008.
2. Alencar, R. (2007). Nível de Disclosure e Custo de Capital Próprio no Mercado Brasileiro. São Paulo. Tese (Doutorado) – Faculdade de Economia, Administração e Contabilidade, Universidade de São Paulo (FEA-USP).
3. Assaf Neto, A. (2003). Finanças Corporativas. São Paulo: Editora Atlas S.A.
4. Assaf Neto, A. (2006). Estrutura e Análise de Balanços: Um Enfoque Econômico-Financeiro. São Paulo: Editora Atlas S.A.
5. Barontini, R.; Siciliano, G. (2003). Equity prices and the risk of expropriation: an analysis of the Italian stock market. Working Paper. EFMA 2004 Basel Meetings Paper; ECGI - Finance Working Paper n. 24. Available on: . Accessed on: 14 Sep, 2008.