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ARTÍCULO
TITULO

Corporate Governance and Information Incorporation Speed: Lead-Lag between the IGC and IBrX

José Carneiro da Cunha Oliveira Neto    
Otávio Ribeiro de Medeiros    
Thiago Bergmann de Queiroz    

Resumen

Based on intraday data with a frequency of 15 minutes, the present study investigates the relationship between the high corporate governance market (IGC) and the traditional market (IBrX). The hypothesis tested is that a higher level of corporate governance reduces the cost associated to incorporating new information to asset prices, and so firms with higher governance incorporate information faster. The co-integration relationship between the time series was tested using the Engle-Granger method in two stages. The vector error correction model (VECM) and the Granger causality test do not permit the rejection of the hypothesis of faster incorporation of information for the high governance market prices. To estimate the VECM we used a bivariate GARCH BEKK model. The results suggest that the IGC finds its equilibrium price more rapidly and that the IBrX converges to the equilibrium relationship determined by the IGC.

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