THE INFLUENCE OF THE ADHESION TO CORPORATE GOVERNANCE PRACTICES ON THE STOCK’S RISK OF OPEN CAPITAL COMPANIES

Abstract

Recently, Brazilian companies have been facing a new investor’s profile that is not only searching for opportunities, but also worried with the risk involved in the transaction. This concern is the result of many scandals involving major corporations. Thus, the adhesion to corporate governance’s practice can be understood as a strategy of the company, with the intention of becoming competitive and creating a propitious environment for receiving investors, aiming at the reduction of cost with the capitation of financing sources. The goal of this study is to investigate whether there are differences between the companies which adhered to corporate governance practices before and after the effective adherence to the different levels. This is an empirical analytical study which evaluates, from the investor’s point of view, if the risk of a share portfolio optimized by Markowitz’s model has not been significant changed statistically after the adherence. The hypothesis F-Fisher test was used to evaluate whether the variances of the sample, before and after accession to the different levels of governance, differ statistically, considering a significance level of 5%. The results lead to the conclusion that there are statistically significant evidences to reject the null hypothesis that the adherence of these companies to the different levels of BOVESPA’s corporate governance affects the companies’ risk in the market.