Financial distress and corporate governance: a study in the brazilian capital market/Financial distress e governanca corporativa: um estudo no mercado de capitais brasileiro

• Published in: GeSec : Revista de Gestão e Secretariado 2023-11, Vol.14 (11), p.20158
• Main Authors: dos Santos, Renato Ribeiro, Peixoto, Fernanda Maciel
• Format: Article
• Language: Portuguese
• ISSN: 2178-9010; 2178-9010
• DOI: 10.7769/gesec.v14i11.3172

Corporate governance is a growing area of management studies, especially for developing economies where its practices have become a focal point for researchers. The objective of the study is to investigate the impact of CG mechanisms on the probability of financial distress of Brazilian non-financial companies listed on B3 in the period from 2010 to 2022. The research analyzes the relationship between shareholder concentration, composition of the board of directors and state ownership with financial distress, and audit variables, COVID19 and regionality were also analyzed. The method adopted was logistic regression and the proxy for financial distress was based on Altman's Z-Score (1968). As main results, it was found that when the company has state ownership, high shareholder concentration and CEO duality, it is more likely to present financial distress. The audit variables, Covid19, return on equity, and return on net profit are negatively related to FD. Finally, the study contributed to the literature in monitoring the risk of bankruptcy, business prosperity and prevention of financial restrictions, bringing important implications for the financial stability of Brazilian firms. Keywords: Financial Distress. Corporate Governance. Shareholding Concentration. Administrative Council. Audit. A governanca corporativa e uma area crescente dos estudos em gestao, especialmente para economias em desenvolvimento onde suas praticas tem se tornado um ponto focal para os pesquisadores. O objetivo do estudo e investigar o impacto de mecanismos de GC sobre a probabilidade de financial distress de empresas brasileiras nao financeiras listadas na B3 no periodo de 2010 a 2022. A pesquisa analisa a relacao entre concentracao acionaria, composicao do conselho de administracao e propriedade estatal com financial distress, e tambem foram analisadas variaveis de auditoria, COVID19 e regionalidade. O metodo adotado foi a regressao logistica e a proxy para financial distress foi baseada na pontuacao Z-Score de Altman (1968). Como principais resultados, constatou-se que quando a empresa tem propriedade estatal, alta concentracao acionaria e dualidade do CEO, ela tem maior probabilidade de apresentar financial distress. Ja as variaveis de auditoria, Covid19, retorno sobre o patrimonio liquido, e retorno sobre o lucro liquido sao negativamente relacionados ao FD. Por fim o estudo contribuiu com a literatura no monitoramento sobre o risco de falencia, prosperidade dos negocios e pre