Facing the Regulators: Noncompliance With Detailed Mandatory Compensation Disclosure in Brazil

摘要: AbstractA preliminary court injunction based on alleged personal security risks gave Brazilian public companies the option of noncompliance with new executive and director compensation disclosure rules. We find that is possibly motivated by agency conflicts not crime rates in state where company headquartered. Noncompliers tend to present lower corporate governance (CG) quality, higher ownership concentration, larger total assets, less profitability. State- foreign-owned are significantly likely noncompliers. Shareholders correctly anticipated CG quality firms were more noncompliers but may have been negatively surprised when some did comply.