CORPORATE GOVERNANCE IN THE CONTEXT OF THE RECOVERY OF DISTRESSED FIRMS: A CASE STUDY IN BRAZILIAN AIR TRANSPORTATION SECTOR

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Abstract

Corporate governance is a set of practices and processes of board and executives’ coordination and control that aims at protecting the interests of shareholders and others affected by the value of the company. The discussions and disputes involving shareholders in Brazil and a new corporate law aimed at improving governance practices in the country, reducing the cost of capital of the company and contributing to national economic growth. In this study, we compared the theoretical evidence on the governance structure of airlines with the reality of a large company in the sector in Brazil. The results indicate that a wrong architecture of ownership and control combined with the non-corporate governance system may result in financial distress for an organization.

Keywords: Agency Theory, Corporate Governance, Organizational Structure

How to cite this paper: de Souza e Almeida, V., & Ribeiro Romano, P. (2011). Corporate governance in the context of the recovery of distressed firms: A case study in Brazilian air transportation sector. Corporate Ownership & Control, 9(1-6), 621-627. https://doi.org/10.22495/cocv9i1c6art5