Corporate governance in state-owned companies: effects on performance

  • Thiago Nery da Cunha Universidade do Vale do Itajaí - UNIVALI
  • Rosilene Marcon Universidade do Vale do Itajaí - UNIVALI
  • Jaison Caetano da Silva Fundação Getúlio Vargas EBAPE
  • Cinara Gambirage Fundação Getúlio Vargas EBAPE

Abstract

Based on agency theory, this article analyzes the adoption and the strengthening of corporate governance and their resulting on performance of state-owned companies. Therefore, it was employed as empirical context the Brazilian state-owned companies that, by force of law, adopted and started to monitor corporate governance mechanisms. Thus, a longitudinal approach was adopted, between 2013 and 2019, and a panel data model for the analysis of all Brazilian and federal state companies directly controlled by the Union, dependent and not dependent from federal government. To our analysis, we employed and original database with longitudinal information at firm level. The main results suggest that the adoption and the strengthening of corporate governance mechanisms by state-owned companies can positively influence economic and financial performance and reduce their financial dependence from the government. However, considering the characteristics of public administration, we argue that this effect can be delayed in state-owned companies. This study contributes to the literature in several ways. The study sheds light on the understood aspects of the theme and includes in the discussion the delayed aspect of the effect from corporate governance on state-owned companies. Moreover, the paper also supports managers and formulators of public politics. 

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Published
May 15, 2021
How to Cite
CUNHA, Thiago Nery da et al. Corporate governance in state-owned companies: effects on performance. Revista de Negócios, [S.l.], v. 26, n. 1, p. 49-62, may 2021. ISSN 1980-4431. Available at: <https://proxy.furb.br/ojs/index.php/rn/article/view/9720>. Date accessed: 05 oct. 2022. doi: http://dx.doi.org/10.7867/1980-4431.2021v26n1p49-62.
Section
Articles

Keywords

Corporate governance, State-owned companies, Economic and financial performance.