Can a Development Bank Improve the Governance of Investee Companies? Evidence from BNDES in Brazil
There are many studies in the literature on
institutional investors- efforts to improve corporate governance,
generally focused on the role of pension funds and private equity
firms. There are only a few studies that analyze the influence of
development banks in the governance of investee companies. The
objective of this research is to examine the role of the Brazilian
Development Bank (BNDES) in the governance of listed companies.
Our analysis provides evidence that companies in which BNDES is a
shareholder have better governance.