Corporate Governance, Value Creation and Growth

The Bridge between Finance and Enterprise

image of Corporate Governance, Value Creation and Growth

This publication examines the role of corporate governance arrangements in providing the right incentives to contribute to the value creation process within the private enterprises and the implications of the differences in ownership structures on corporate governance practices and frameworks. It also addresses these global changes from emerging markets perspective and the distinguishing features of these economies that shape their capital markets, corporate structures and corporate governance landscape.

This publication is an important reminder that all those corporate governance rules, regulations and practices that we discuss are not a goal in themselves. They are supposed to be means to a greater end. Be it minority rights, mandatory bids, or independent directors, the rules and regulations that we put in place should serve a purpose. And it is against this purpose and these objectives that the quality of any corporate governance system should be evaluated. So, we need to find a benchmark against which we can assess new regulations and evaluate existing ones.



Brazilian Perspective

This chapter begins by describing the legal and regulatory framework that existed in Brazil before 2002, when the Novo Mercado was created by the Brazilian Stock Exchange (Bovespa), and the problems that prevailed there at the time. It then presents the types of remedies that were chosen to address the types of problems observed, which constitute the main Novo Mercado rules. It is not a typical set of corporate governance rules, although it was largely influenced by the dominant concepts and prescriptions in this field. Finally, it analyses both how the adoption of these corporate governance provisions has influenced the Brazilian market and whether there is already an outcome after ten years.


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