Level of Corporate Governance and Content of Information Provided in Management Reports of Brazilian Companies Traded on the BOVESPA Stock Exchange

This study examined possible variations in the content of information presented in annual Management Reports of Brazilian companies traded on the Bovespa stock exchange taking into consideration the different levels of Corporate Governance adhered to by these companies and performance indicators. The principal types of information provided, established qualitatively, through content analysis, were the following: Operational Cash Flow, Profit, Revenue, Economic Environment, Market, Environmental Social Responsibility, Corporate Governance, Technology and Resources and Resource Use. Performance indicators calculated were those suggested by Lyra and Corrar (2009): Return on Equity, Return on Assets, Current Liquidity, Debt, Sales Growth, Net Margin and Asset Turnover. Using regression techniques and panel data, two hypotheses were tested and supported: (i) that there is no variation in the informational content of Management Reports of companies that adhere and do not adhere to advanced levels of corporate governance; and (ii) that there is no variation in the informational content of Management Reports of companies adhering to the three different advanced levels of corporate governance of the Bovespa exchange. The findings suggest that good corporate governance practices contribute positively to the quality and transparency of information made available.