IIF's Equity Advisory Group Releases Report
Securing increased flows of portfolio equity finance into Brazil will require significant corporate governance reform, stated the Institute of International Finance (IIF) in a new report today. "Brazil is building many components of a strong, dynamic economy. However, Brazil lacks a broadly based equity culture and local equity markets are thin. These situations need to change to enable our companies to become fully competitive in attracting capital" said Dr. Roberto Egydio Setúbal, Vice Chairman of the IIF and President and Chief Executive Officer Banco Itaú S.A.
Dr. Setúbal added, "As Brazil has been steadily moving from a relatively protected and insular economy to greater global integration, many stakeholders have recognized the need to improve company performance. Critical to this goal is the promotion of sound corporate governance, which can help attract additional capital from portfolio investors and deepen capital markets. Although some companies already practice high level corporate governance, the overall legal framework needs to be improved. Some changes in that direction have been implemented recently, but the new IIF report points to important gaps that need to be considered in future reforms."
See full Press Release.
Posts
