Abstract
The aim of this study is to analyze the reaction of equity mutual funds to changes in the classification of Brazilian public firms according to the special listing segments of the Brazilian Stock Exchange. To do so, we selected all firms who have experienced any change in their listing segment from January 2010 to November 2018; the final sample consisted of 34 firms. Regarding mutual funds, we considered all equity mutual funds with available data in the period. The results showed a positive and statistically significant relationship between the variables that indicate the sum of the percentage invested by funds in companies and the dummy variable for the month of change in the listing segment and the next two months. Therefore, institutional investors seem to increase investments in stocks of firms which moved to a listing segment with greater requirements in terms of corporate governance. This research contributes by providing evidence of the effect that corporate governance standards have on investment decisions of equity mutual funds. As for the limitations, this study is subject to the sample of 34 companies that had some change in the listing segments and the use of only the equity mutual funds category.
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