Corporate Governance in Emerging Markets After Lava Jato: What Lessons Can We Learn from Brazil?

After ending 2014 with major corporate scandals in China (GlaxoSmithKline), Brazil (Petrobras) and Portugal (Banco Espírito Santo), some investors thought we were back to business as usual in 2015. Instead, Brazil’s Operação Lava Jato (Operation Car Wash) corruption probe mushroomed to an even broader investigation that has entwined senior management at some of the country’s largest corporations and dragged a number of bonds and stocks to distressed levels. These recent scandals are happening in environments that have typically accepted non-transparent behavior, suggesting that there may growing intolerance for corporate misbehavior. In the long term, increased transparency and improved corporate governance will help investors to better assess value and risk. In the meantime, investors must learn to predict and protect themselves from the issues that Lava Jato brought to the fore: bribery, opaque procurement policies, and corporate controls.
 
The event used Lava Jato as a launching point to discuss these risks more broadly across emerging markets. Topics included the response of corporate governance to corrupt behavior in Brazil and other markets and possible improvements that investors can push for to better protect their interests.

Additional information: 

To RSVP, please visit http://lavajato.eventbrite.com

Participants: 

Edgardo Sternberg, Loomis Sayles
Michael Brodsky, Deloitte Advisory
Stephen Davis, Harvard Law School Program on Corporate Governance
Ric Marshall, MSCI ESG Research

Host Commitee Members: 

Carla Buffulin, AIG Investments
Chulantha De Silva, Credit Suisse AG
Jack Deino, Blackrock
Amelie Derosne, Societe Generale
Bill Gulya, Bank of America Merrill Lynch
Richard Katz, Standard Chartered Bank
Eleanor Mapa, CIBC World Markets
Mandeep Manihani, J.P. Morgan Chase
Lynne Mazin, Commerzbank AG
Ana Merlano, Cantor Fitzgerald & Co.
Patricia Medina, ING Investment Management
Daniel Shin, UBS Financial Services
Aniket Shah, UN Sustainable Development Solutions Network and Investec
Harry Wool, Oppenheimer & Co.
Albert Yuen, Kariba Capital