Can a Development Bank Improve the Governance of Investee Companies? Evidence from BNDES in Brazil
There are many studies in the literature on
institutional investors- efforts to improve corporate governance,
generally focused on the role of pension funds and private equity
firms. There are only a few studies that analyze the influence of
development banks in the governance of investee companies. The
objective of this research is to examine the role of the Brazilian
Development Bank (BNDES) in the governance of listed companies.
Our analysis provides evidence that companies in which BNDES is a
shareholder have better governance.
[1] W. Carleton, J. Nelson, and M. Weisbach, "The influence of institutions
on corporate governance through private negotiations: evidence from
TIAA-CREF", Journal of Finance, vol. 53, pp. 1335-1362, 1998.
[2] S. Gillan, and L Starks, "A survey of shareholder activism: motivation
and empirical evidence", Contemporary Finance Digest, vol. 2, pp. 10-
34, 1998.
[3] S. Gillan, and L Starks, "Corporate governance, corporate ownership,
and the role of institutional investors: a global perspective", Journal of
Applied Finance, vol.13, pp. 16-17, 2003.
[4] M. Giannetti, and L. Laeven, "Pension reform, ownership structure, and
corporate governance: Evidence from a natural experiment", The Review
of Financial Studies, vol. 22, pp. 4091-4127, 2009.
[5] R. Aggarwal, I. Erel, M. Ferreira, P. Matos, "Does governance travel
around the world? Evidence from institutional investors", Journal of
Financial Economics, vol. 100, pp. 154-181, 2011.
[6] M. Smith, "Shareholder activism by institutional investors: evidence
from CALPERS", Journal of Finance, vol.51, pp. 227-252, 1996.
[7] S. Nesbitt, "Long term rewards from shareholder activism: a study of the
CALPERS effect", Journal of Applied Corporate Finance, vol. 6, pp.
75-80, 1994.
[8] S. Nesbitt, "The CALPERS Effect on targeted company share prices",
NACD Directorship, vol. 2, 2001.
[9] A. Silveira, "Institutional investors and corporate governance in Brazil",
available at <http://ssm.com/author=443083>, 2011.
[10] S. Lazzarini, and A.Musacchio, "Leviathan as a minority shareholder: a
study of equity purchases by BNDES", Harvard Business School
Working Paper 11-073, 2011.
[11] S. Lazzarini, A. Musacchio, R. Bandeira-De-Mello, and R. Marcon,
"What do development banks do? Evidence from Brazil, 2002-2009",
available at at <http://ssm.com/abstract=1969843>, 2011.
[12] R. Leal, and A. Carvalhal, "Corporate governance and value in Brazil
(and in Chile)", In: A. Chong, and F. Silanes, (Org.). Investor Protection
and Corporate Governance: Firm-Level Evidence Across Latin
America. 1 ed. Palo Alto: Stanford University Press, p. 213-288, 2007.
[1] W. Carleton, J. Nelson, and M. Weisbach, "The influence of institutions
on corporate governance through private negotiations: evidence from
TIAA-CREF", Journal of Finance, vol. 53, pp. 1335-1362, 1998.
[2] S. Gillan, and L Starks, "A survey of shareholder activism: motivation
and empirical evidence", Contemporary Finance Digest, vol. 2, pp. 10-
34, 1998.
[3] S. Gillan, and L Starks, "Corporate governance, corporate ownership,
and the role of institutional investors: a global perspective", Journal of
Applied Finance, vol.13, pp. 16-17, 2003.
[4] M. Giannetti, and L. Laeven, "Pension reform, ownership structure, and
corporate governance: Evidence from a natural experiment", The Review
of Financial Studies, vol. 22, pp. 4091-4127, 2009.
[5] R. Aggarwal, I. Erel, M. Ferreira, P. Matos, "Does governance travel
around the world? Evidence from institutional investors", Journal of
Financial Economics, vol. 100, pp. 154-181, 2011.
[6] M. Smith, "Shareholder activism by institutional investors: evidence
from CALPERS", Journal of Finance, vol.51, pp. 227-252, 1996.
[7] S. Nesbitt, "Long term rewards from shareholder activism: a study of the
CALPERS effect", Journal of Applied Corporate Finance, vol. 6, pp.
75-80, 1994.
[8] S. Nesbitt, "The CALPERS Effect on targeted company share prices",
NACD Directorship, vol. 2, 2001.
[9] A. Silveira, "Institutional investors and corporate governance in Brazil",
available at <http://ssm.com/author=443083>, 2011.
[10] S. Lazzarini, and A.Musacchio, "Leviathan as a minority shareholder: a
study of equity purchases by BNDES", Harvard Business School
Working Paper 11-073, 2011.
[11] S. Lazzarini, A. Musacchio, R. Bandeira-De-Mello, and R. Marcon,
"What do development banks do? Evidence from Brazil, 2002-2009",
available at at <http://ssm.com/abstract=1969843>, 2011.
[12] R. Leal, and A. Carvalhal, "Corporate governance and value in Brazil
(and in Chile)", In: A. Chong, and F. Silanes, (Org.). Investor Protection
and Corporate Governance: Firm-Level Evidence Across Latin
America. 1 ed. Palo Alto: Stanford University Press, p. 213-288, 2007.
@article{"International Journal of Business, Human and Social Sciences:53560", author = "Andre Luiz Carvalhal da Silva and Fernanda Farah de Abreu Zorman", title = "Can a Development Bank Improve the Governance of Investee Companies? Evidence from BNDES in Brazil", abstract = "There are many studies in the literature on
institutional investors- efforts to improve corporate governance,
generally focused on the role of pension funds and private equity
firms. There are only a few studies that analyze the influence of
development banks in the governance of investee companies. The
objective of this research is to examine the role of the Brazilian
Development Bank (BNDES) in the governance of listed companies.
Our analysis provides evidence that companies in which BNDES is a
shareholder have better governance.", keywords = "BNDES, corporate governance, development banks,
institutional investors.", volume = "7", number = "2", pages = "351-4", }
