We investigate whether the concentration of power in the hands of individuals characterized as business leaders influences the variability of corporate performance. We do so by proposing an original method to estimate the concentration of power that takes into account both the individual...

This paper offers solutions to mitigate the problems associated with the endogeneity issues of explanatory variables faced by corporate finance researchers who analyze observational data via regression methods. Such problems may bias the causality inferences between variables, a fundamental goal...

This paper aims to analyze the ownership structure of 100 companies that went public in the Sao Paulo Stock Exchange (BOVESPA) during 2004 to 2007. We assess, particularly, the effect of pyramidal ownership structures on firm’s market value. In order to do so, we collect data on the firm’s...

This research investigates the determinants of the capital structure of small and medium enterprises (SMEs) using a unique database that includes over 19,000 Brazilian firms and spans 13 years of data. The econometric analysis employs the System Generalized Method of Moments estimator (GMM-Sys)...

Purpose – This paper aims to investigate the determinants and the evolution of voluntarily adopted firm‐level corporate governance practices in Brazil from 1998 to 2004 using broad corporate governance scores. Design/methodology/approach – The authors employ a robust panel‐data procedure...

Corporate governance studies typically assume that the CEO is the main locus of business power. However, when the CEO and Chairman positions are split, the de facto role of corporate leader may reside in the hands of a person who usually chairs the board but does not necessarily hold the CEO...

The Brazilian Development Bank (BNDES) is the main financing agent for long term investments in Brazil. Given its relevance, deriving from its large disbursements at subsidized interest rates, the bank could positively influence the corporate governance landscape among large Brazilian companies....

Most Economics and Finance research relegates the possible influence of managers' personal characteristics or "style" over the main corporate policies and firm performance to a secondary level, preferably investigating market, industry or firm characteristics. However, a growing theoretical and...