| Summary: | In 2001, Bovespa created the IGC index, a segment composed of companies´ shares, which apply Corporate Governance principles to their administrations. The migration of companies from Ibovespa -a traditional Bovespa Index – to IGC was done voluntarily with the signing of a formal contract between the companies’ representatives and Bovespa. As it is a voluntary migration, one expects that a greater exposition of the shares in this segment bring about a higher return to the shareholders. Through an econometric study making use of information originating from daily quotations, Consolidated Patrimonial Balance and the Demonstrative of Results of the Exercise of those companies, one expects to find positive effects in that migration for the stockholders and for the stock market due to reduction of the conflict of agency between agent -principal.
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