Brazilian companies a hundred years ago also provided investor-friendly provisions that protected shareholders from abuses by large shareholders, managers, and other corporate insiders
The current debate in the United States about how to regulate Wall Street focuses on laws, regulations, and monitoring. But lawmakers may want to look to history for guidance, to Brazil 100 years ago, when transparent governance and investor protections came from places we might consider unlikely today: the companies themselves.
Q: The period after 1915 saw a major decline in Brazilian markets. What happened? Why didn't investor protections persist?
This article was provided with permission from Harvard Business School Working Knowledge.