FGV EAESP

We show that overall corporate governance (CG) level improved significantly between 2010 and 2019. Such improvement has two sources: the increase in the proportion of high-standard listings (Novo Mercado and Nivel 2, NMN2) vis-à-vis low-standard listings (Nivel 1 and regular market, N1R), and the improvement in CG practices. Between 2010 and 2015, firms improved CG practices considerably in all of its aspects. Improvement between 2015 and 2019 was mostly due to the rise of NMN2. Improvements were stronger for Board Procedures and Disclosure. Firms in both listings improved their CG. However, improvement in N1R was weaker than in NMN2.