This book provides a detailed historical description of the
evolution of corporate governance and stock markets in Brazil in
the late nineteenth and twentieth centuries. The analysis details
the practices of corporate governance, in particular the rights
that shareholders have to restrict the actions of managers, and how
that shaped different approaches to corporate finance over time. In
the case of Brazil, even if the protections for investors included
in national laws were relatively weak before 1940, corporate
charters contained a series of provisions that protected minority
shareholders against the abuses of large shareholders, managers, or
other corporate insiders. The investigation uses the Brazilian case
to challenge some of the key findings of a recent literature that
argues that legal systems (e.g., common vs. civil law) shape the
extent of development of stock and bond markets in different
nations.
General
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