Premium Listing Segments And Information Based Trading In Brasil

Non-traditional listing rules based on corporate governance practices may ensure investors a higher level of protection and reduce expropriation of minority shareholders. We investigate how listing levels that are different according to corporate governance practices, a natural experiment provided b...

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Bibliographic Details
Published in:	Academia (Consejo Latinoamericano de Escuelas de Administración) 2010-09 (45), p.1
Main Authors:	Barbedo, Claudio Henrique, Eduardo Camilo da Silva, Ricardo Pereira Câmara Leal
Format:	Article
Language:	por
Subjects:	Cash flow statements Consolidated financial statements Corporate governance Emerging markets Equity capital Financial Audits Initial public offerings Investments Related party transactions Securities markets Stock exchanges Stock market delistings Stockholders Voting rights
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Summary:	Non-traditional listing rules based on corporate governance practices may ensure investors a higher level of protection and reduce expropriation of minority shareholders. We investigate how listing levels that are different according to corporate governance practices, a natural experiment provided by the Brazilian stock exchange (Bovespa), and liquidity levels are associated to the probability of informed trading (PIN) using the number of intraday buy and sell orders. We find that PIN is lower in stricter corporate governance practices listing levels, after controlling for liquidity. Greater liquidity is associated to a lower PIN due, particularly, to the presence of non-informed investors.
ISSN:	1012-8255 2056-5127