Several Latin American companies have seen big boosts to their stock prices, and/or to their bottom lines, after improving their corporate governance practices in the past few years. 'Case Studies of Good Corporate Governance Practices' (PDF, 2.9MB) showcases the experiences of these firms, which are known as the 'Companies Circle' of the Latin America Corporate Governance Roundtable - a group of Latin American firms sponsored by the IFC and OECD that have improved their governance practices.
The cases demonstrate the practical approaches companies take to improve their transparency and disclosure, accountability, respect for the rights of shareholders, and equitable treatment of all stakeholders. Each firm has taken its own path, adopting governance structures and practices tailored to its own situation, rather than blindly adopting “best practices”.
Here are some of the success stories featured in the book:
- Buenaventura (mining, Peru): The company converted all of its shares into a single share class prior to its 1996 IPO. Since then, its market cap has risen more than five times. The firm has complied with Sarbanes Oxley since July 2005.
- Argos (cement, Colombia): After adopting a code of corporate governance in March 2004, its share price rose 108% over the next 18 months.
- Natura (cosmetics, Brazil): The firm made its IPO on the "good governance exchange", the Novo Mercado, in 2004. The IPO was 14 times oversubscribed.
The case studies are available in English, Português, y Español.
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