Efeito da Governança Corporativa nos Retornos das Ações em Decorrência do Anúncio da Recompra

Abstract

Objective: The objective of this study is to analyze whether or not the stock prices of companies respond to the announcement of the share buyback and what are the possible influences that the adoption of stricter corporate governance practices may have on the results.Method: A quantitative research was carried out on 329 public share buyback announcements, carried out by 99 companies, from 2003 to 2014. The quantitative part of this study used the ex-post-facto research technique, with data secondary and event study work methods.Originality/Relevance: The increase in cash distribution by companies through the repurchase of shares, the evidence of an abnormal return on shares as a result of the repurchase and whether or not the adoption of better corporate governance practices reduce information asymmetry in the market, has led researchers to analyze whether or not there is a relationship between the level of governance and the return on shares as a result of the announcement of the share buyback event.Results: The results indicate that there is evidence of an abnormal return in the Brazilian market before, during and after the announcement of the share buyback event. Regarding the adoption of corporate governance practices used by companies, no evidence was found that the adoption of stricter corporate governance practices reduces asymmetry.Theoretical/Methodological contributions: The research contributes to the discussion of the theme in the Brazilian stock market and to broaden the discussion in the literature if the adoption of best corporate governance practices reduces the asymmetry.