The Influence of Adherence to the Arbitration Chamber in Creating Value for Companies

Abstract

The relationship between shareholders is likely to be conflicting, and the Brazilian Corporate Law has proved insufficient to safeguard minority rights. B3 (name of the new Brazilian stock exchange, which resulted from the merger of BM & FBOVESPA and CETIP) created listing segments that favor strict corporate governance rules, which aim to improve the valuation of those that decide to join one segments. Based on the arguments of agency theory and signaling, assess whether adhesion of the arbitration chamber, a mandatory requirement in Novo Mercado and Nível 2, both B3’s segments, influences the creation of corporate value. The result of the qualitative research carried out, of an exploratory nature, indicates that arbitration as a mechanism for resolving conflicts presents several advantages over the traditional Judicial Branch, and that, in general, benefits minority shareholders. There are evidences that adhesion of the arbitration chamber reduces the capital’s cost and positively influences the creation of value. Research is important to help company managers make better decisions, and to collaborate in the development of the capital market, with the consequent growth of the country's economy.