Has financial globalization since 1990 reduced income inequality: the role of rating announcements on the volatility and the returns of the Brazilian Financial Market[Les annonces de notation souveraine, la volatilité des marchés financiers et les inégalités des revenus : une analyse du marché brésilien]

This study aims to investigate whether the returns and volatility of the Brazilian equity market adjust quickly to the announcements of the Sovereign Rating and whether direct finance (by international investors) helps to create a better allocation of resources in Brazil. For the financial profitability and the stock volatility, our paper analyzes the role of ratings changes, not anticipated by the markets, on the performance of the Brazilian Stock Market Index by examining if the hypothesis of the EMH of the economist Fama (1965) is hold. We will then analyze the allocative efficiency of capital inflows into Brazil by questioning whether these capital inflows have allowed this country to accelerate its growth and raise its standard of living. We will particularly investigate whether the inflows of FDIs have upgraded the Brazil's specialization in order to make this emerging country less dependent on the international markets.