Bonding Hypothesis: Analysis of the Relationship Between Disclosure, Corporate Governance and Internationalization of Companies Open in Brazil

The relationship of corporate disclosure, corporate governance practices and the degree of internationalization degree (level of ADRs emitted) of the one hundred largest listed companies in Brazil. The level of disclosure was determined from financial statements for fiscal years 2006, 2007 e 2008, using the disclosure index proposed by Murcia (2009); the level of corporate governance was calculated based on whether the firm participated in one of the 'Differentiated Levels of Governance' recognized by the Brazilian stock exchange (BM & and the degree of internationalization was calculated based on the emission of American Depositary Receipts (ADRs). Single and Multiple Correspondence Analysis was used for analyzing the data. Findings were current with the bonding hypothesis: firms with emission of ADRs on the American stock market have higher levels of disclosure; companies with poor or average disclosure negotiate their stocks only on the Brazilian Stock Exchange; good economic disclosure is related to the over-the-counter U.S Market; poor levels of corporate governance are associated with issuing stocks only in the Brazilian Market; and companies that have their stock listed in the U.S. Stock Market present higher levels of corporate governance.