CREDIT RATING, CORPORATE GOVERNANCE AND PERFORMANCE OF LISTED COMPANIES IN BM&FBOVESPA

Abstract

This study aimed to analyze the effects of corporate governance practices on the credit rating assigned by
Moody's to open, non-financial companies with shares traded on the BM&FBOVESPA in the period 2008-
2012. Analysis relied on theoretical grounds addressed by the Agency Theory (JENSEN; MECKLING, 

1976), particularly with regard to the mechanisms of transparency and quality of assets that, as a
consequence, may affect the performance indicators and credibility of firms (LARKER; TAYAN, 2011;
BAKER, ANDERSON, 2011). To achieve the research purposes, ordered Probit regressions were used,
having as dependent variable the credit rating of the companies, and, as independent variables, indicators of
corporate governance and performance. Among the main results, it was possible to observe that there was a
positive and significant relationship between the credit rating and the level of corporate governance and
return on assets. Additionally, there was a negative relationship between rating and leverage firms. It was
found also that during the height of the financial crisis of 2008, firms in the highest levels of governance
were superior to those in lower levels. The main contributions of this study concern the ratification of
existing evidence in the sense that there is a positive effect of corporate governance on the ratings assigned
by Moody’s, suggesting that the level of governance should be considered in credit analysis, as well as
evidence that better levels of governance resonated positively on business performance during a financial
crisis.