IDEAS home Printed from https://ideas.repec.org/a/brf/journl/v7y2009i1p107-136.html
   My bibliography  Save this article

Bovespa New Markets Adoption - Novo Mercado, Nível 1 and Nível 2, Determinants and Consequences

Author

Listed:
  • Jairo Laser Procianoy

    (Universidade Federal do Rio Grande do Sul)

  • Rodrigo Verdi

    (Sloan School of Management, MIT)

Abstract

This paper studies the determinants and consequences of firms that adopted the Brazilian new stock exchanges – Novo Mercado, Nível 1 and Nível 2. Since 2001 more than 61 companies chose to be traded in these exchanges with the intention to raise their levels of disclosure and corporate governance. In terms of determinants, firms that adopted the new markets are larger, more profitable, more likely to be traded as ADRs and have more dispersed ownership. As for the consequences, shares of firms that adopted the new markets are more liquid than shares of firms traded in the regular exchange (BOVESPA). In addition, firms that adopted the Nível 2 and the Novo Mercado – markets with stricter disclosure and governance requirements - also experienced an increase in liquidity when compared to their liquidity prior to the adoption.

Suggested Citation

  • Jairo Laser Procianoy & Rodrigo Verdi, 2009. "Bovespa New Markets Adoption - Novo Mercado, Nível 1 and Nível 2, Determinants and Consequences," Brazilian Review of Finance, Brazilian Society of Finance, vol. 7(1), pages 107-136.
    • Handle: RePEc:brf:journl:v:7:y:2009:i:1:p:107-136
    as

    Download full text from publisher

    File URL: http://bibliotecadigital.fgv.br/ojs/index.php/rbfin/article/download/1429/799
    Download Restriction: no
    File URL: http://bibliotecadigital.fgv.br/ojs/index.php/rbfin/article/view/1429
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luciano Rossoni & Cezar Eduardo Aranha & Wesley Mendes-Da-Silva, 2018. "The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging Market," Complexity, Hindawi, vol. 2018, pages 1-12, February.
    2. Luciano Rossoni & Cezar Eduardo Aranha & Wesley Mendes-Da-Silva, 2018. "Does the capital of social capital matter? Relational resources of the board and the performance of Brazilian companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(1), pages 153-185, March.

    More about this item

    Keywords

    corporate governance; disclosure; Bovespa markets; ADRs;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:brf:journl:v:7:y:2009:i:1:p:107-136. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marcio Laurini (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.