Governança corporativa e sensibilidade investimento-fluxo de caixa no Brasil

This study aimed to investigate the investment-cash flow sensitivity for Brazilian companies with different levels of corporate governance. Investment models were estimated through System Generalized Method of Moments (GMM-Sys) for longitudinal data of 248 Brazilian publicly traded companies from 2006 to 2015. The firms were a priori classified in two groups of governance quality according to the Corporate Governance Practices Index (IPGC). The results showed that the quality of corporate governance influenced the investment-cash flow sensitivity, and this relationship was negative and significant only for firms with poor governance. This result can be interpreted as a sign that these firms seek to increase their cash flow reserves and reduce investments for reasons related to financial constraints and/or agency problems.