The corporate governance impacts on BNDES financing to the agribusiness expanded chain

Abstract

Brazilian agribusiness stands out on the global stage as one of the main food producers and exporters in the world and is currently considered the most powerful segment of the country's economy. the present work aims to understand the impact that corporate governance has on the capture of so-called quality funding (attractive conditions of financial volumes, terms and costs), specifically from subsidized credit lines from BNDES, for the Agribusiness segment. It was used a final sample of 31 publicly traded companies (initially starting from 145 companies in the expanded agribusiness chain), listed on B3 which contracted financing from BNDES. The evidence of multiple linear regression, suggest that the adoption of corporate governance practices may not be decisive in attracting quality funding from the BNDES. It was found that companies in the final sample that adhere to the B3's maximum level of governance, namely the Novo Mercado, do not obtain, necessarily, lower financing costs than Levels 2 and 1 or those not adherent to the institution’s governance.