Non-compliance in Executive Compensation Disclosure: the Brazilian Experience

摘要: We examine the determinants and consequences of firms’ choice not to comply with a new executive compensation disclosure regulation. exploit unique feature Brazilian markets, where change in regulation could arguably lead personal security-related costs for executives. This major reform Brazil became effective December 2009. While some firms complied regulation, other explicitly refused fully by using court injunction. After controlling firm-specific characteristics both social economic inequality measures, we find that degree criminality state which firm is headquartered (a proxy costs) level CEO are important firm's decision disclose information. also show do face form higher bid-ask spreads, suggesting investors leery discuss potential implications our results context reform.