Mercado de capitais e desenvolvimento

• Autor(a) principal: Malaga Butron, Guillermo Roberto Tomas
• Data de Publicação: 1997
• Tipo de documento: Relatório
• Idioma: por
• Título da fonte: Repositório Institucional do FGV (FGV Repositório Digital)
• Texto Completo: http://hdl.handle.net/10438/3154
• topic: Public goods; Financial markets; Monitoramento; Investidores de longo prazo; Administração de empresas; Bens públicos; Mercado financeiro

Brazilian corporations tend to sell mainly preferred shares instead of common shares in the stock market. This paper analyses some of the consequences of this practice. We argue that it tends to displace long term investors which may perform a double function: monitor activities that prevent undesirable practices of the managers and stabilize the market reducing the chances of hostile takeovers. We develop the conditions under which management monitoring services are offered taking into account its public good nature and the reputational problems involved that result in under-supply of this activity. It is also analysed how the participation of these long term investors in the market affects the action of arbitrageurs trying to extract signs from the market in order to profit from prices out of their fundamental values.