Elections and CEO successions in Brazilian state-owned companies

Guimarães, Sergio Foldes; Silva, André Luiz Carvalhal da

doi:10.7819/rbgn.v22i0.4060

Sergio Foldes Guimarães

Federal University of Rio de Janeiro, Coppead Institute of Administration, Rio de Janeiro, Brazil E-mail: sergio.foldes@coppead.ufrj.br andrec@coppead.ufrj.br

http://orcid.org/0000-0001-8625-6282

André Luiz Carvalhal da Silva

Federal University of Rio de Janeiro, Coppead Institute of Administration, Rio de Janeiro, Brazil E-mail: sergio.foldes@coppead.ufrj.br andrec@coppead.ufrj.br

http://orcid.org/0000-0003-0210-2775

1.
Sergio Foldes Guimarães, Master in Management Science at PUC-Rio, Rio de Janeiro, Brazil.

2.
André Luiz Carvalhal da Silva, Doctor in Management Science at Coppead/UFRJ, Rio de Janeiro, Brazil.

Responsible editor:

Prof. Dr. Joelson Oliveira Sampaio

Contribution of each author

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Contribution Sergio Guimaraes André Silva 1. Definition of research problem √ √ 2. Development of hypotheses or research questions (empirical studies) √ √ 3. Development of theoretical propositions (theoretical Work) 4. Theoretical foundation/ Literature review √ √ 5. Definition of methodological procedures √ 6. Data collection √ 7. Statistical analysis √ 8. Analysis and interpretation of data √ √ 9. Critical revision of the manuscript √ 10. Manuscript Writing √ 11. Other (please specify which)

Tables (6)

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Contribution Sergio Guimaraes André Silva 1. Definition of research problem √ √ 2. Development of hypotheses or research questions (empirical studies) √ √ 3. Development of theoretical propositions (theoretical Work) 4. Theoretical foundation/ Literature review √ √ 5. Definition of methodological procedures √ 6. Data collection √ 7. Statistical analysis √ 8. Analysis and interpretation of data √ √ 9. Critical revision of the manuscript √ 10. Manuscript Writing √ 11. Other (please specify which)

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Table 1
Presidents in Brazil and number of CEOs of SOEs

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Table 2
CEOs of SOEs

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Table 3
Changes in Top Management Teams filed at CVM after election years

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Table 4
Impacts on SOEs of political events

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Table 5
CEO Successions at SOEs

Contribution	Sergio Guimaraes	André Silva
1. Definition of research problem	√	√
2. Development of hypotheses or research questions (empirical studies)	√	√
3. Development of theoretical propositions (theoretical Work)
4. Theoretical foundation/ Literature review	√	√
5. Definition of methodological procedures		√
6. Data collection	√
7. Statistical analysis	√
8. Analysis and interpretation of data	√	√
9. Critical revision of the manuscript		√
10. Manuscript Writing	√
11. Other (please specify which)

Date	Election Round	President	Term	Banco Brasil	Eletrobras	Petrobras
Oct 3^rd, 1994	1	FHC	1995-1998	1	3	1
Oct 4^th, 1998	1	FHC	1998-2002	3	3^a	3
Oct 27^th, 2002	2	Lula	2002-2006	3^a	3	2^a
Oct 29^th, 2006	2	Lula	2006-2010	2^a	3^a	1
Oct 31^st, 2010	2	Rousseff	2010-2014	1	2^a	1
Oct 26^th, 2014	2	Rousseff	2014-2016 *	2	1^a	1
May 12^th, 2016	Impeachment	Temer	2016-	1	1	2
			Total CEOs	11	12	10

	CEO	Insider	Initial Date	End Date	Government
Panel A: Banco do Brasil
	Paulo Cesar Ximenes	Yes	Feb, 16 -1995	Jan, 06 - 1999	FHC
	Andrea Calabi	No	Jan, 06 - 1999	Jul, 29 - 1999	FHC
	Paolo Zaghen	No	Jul, 29 - 1999	Mar, 28 - 2001	FHC
	Eduardo Guimarães	No	Mar, 28 - 2001	Jan, 29 - 2003	FHC
	Cassio Casseb	No	Jan, 29 - 2003	Nov, 17 - 2004	Lula
	Rossano Pinto	Yes	Nov, 17 - 2004	Dec, 11 - 2006	Lula
	Antonio Lima Neto	Yes	Dec, 11 - 2006	Apr, 08 - 2009	Lula
	Aldemir Bendine	Yes	Apr, 08 - 2009	Feb, 06 - 2015	Lula
	Alexandre Abreu	Yes	Feb, 06 - 2015	May, 31 - 2016	Rousseff
	Paulo Caffarelli	Yes	May, 31 -2016		Temer
Panel B: Eletrobras
	Mario Fernando Melo Santos	Yes	Jan, 02 - 1995	May, 04 - 1995	FHC
	Antônio Imbassahy	No	May, 04 - 1995	May, 29 - 1996	FHC
	Firmino Ferreira Sampaio ^b	No	May, 29 - 1996	Apr, 09 - 2001	FHC
	Cláudio Ávila da Silva	No	Apr, 09 - 2001	Apr, 01 -2002	FHC
	Altino Ventura Filho	Yes	Apr, 01 - 2002	Jan, 14 -2003	FHC
	Luiz Pinguelli Rosa	No	Jan, 14 - 2003	May, 12 - 2004	Lula
	Silas Rondeau	No	May, 12 - 2004	Jul,11 - 2005	Lula
	Aloísio Vasconcelos Novais	No	Jul, 11 - 2005	Jan, 02 -2007	Lula
	Valter Luiz Cardeal	Yes	Jan, 02 - 2007	Mar, 10 -2008	Lula
	José Antonio Muniz Lopes ^b	Yes	Mar, 10 - 2008	Feb, 28 - 2011	Lula
	José da Costa Carvalho ^b	Yes	Feb, 28 - 2011	Jun, 01 - 2016	Rousseff
	Wilson Ferreira Júnior	No	Jun, 01 - 2016		Temer
Panel C: Petrobras
	Joel Mendes Rennó ^b	Yes	Jan, 01 - 1995	Mar, 08 - 1999	FHC
	José Coutinho Barbosa	Yes	Mar, 08 - 1999	Mar, 24 -1999	FHC
	Henri Philippe Reichstul	No	Mar, 24 - 1999	Jan, 02 - 2002	FHC
	Francisco Gros	No	Jan, 02 - 2002	Jan, 02 - 2003	FHC
	José Eduardo Dutra	Yes	Jan, 02 - 2003	Jul, 22 - 2005	Lula
	CEO	Insider	Initial Date	End Date	Government
	Sergio Gabrielli ^b	Yes	Jul, 22 - 2005	Feb, 13 - 2012	Lula
	Maria das Graças Foster	Yes	Feb, 13 - 2012	Feb, 06 - 2015	Rousseff
	Aldemir Bendine	No	Feb, 06 - 2015	May, 30 - 2016	Rousseff
	Pedro Parente	No	May, 30 - 2016	Jun, 01 - 2018	Temer
	Ivan Monteiro	No	Jun, 01 - 2018		Temer

Election - Election + 1 year	% change of TMT in Banco do Brasil	% change of TMT in Eletrobras	% change of TMT in Petrobras
1998-1999 (FHC1- FHC2)	57,14%	22,22%	7,14%
2002 -2003 (FHC-Lula)*	86,67%	71,43%	80,00%
2006-2007 (Lula1-Lula2)	37,50%	38,46%	11,76%
2010-2011 (Lula-Dilma)	18,75%	50,00%	47,05%
2014-2015(Dilma1-Dilma2)	29,41%	42,86%	88,23%
2015-2016 (Dilma-Temer)*	88,23%	81,25%	31,25%

		Banco do Brasil		Eletrobras		Petrobras		Cross-Section SOEs
	window size	RAC	t	CAR	t	CAR	t	CAR	t-cross
1994 election	0	2,16%	0,46	-3,81%	-0,83	-5,97%	-1,22	-2,50%	-1,05
	1	0,84%	0,1	-6,93%	-0,87	-9,88%	-1,16	-5,30%	-1,66
	5	-17,28%	-1,11	-17,80%	-1,16	-18,30%	-1,12	-17,79%	-59,86**
	10	-32,05%	-1,48	-25,52%	-1,21	-33,46%	-1,49	-30,35%	-12,41**
1998 election	0	-0,45%	-0,12	-0,81%	-0,26	-0,17%	-0,09	-0,48%	-2,58**
	1	0,18%	0,03	-4,42%	-0,83	-0,33%	-0,1	-1,52%	-1,05
	5	1,53%	0,13	-0,37%	-0,04	9,58%	1,46	3,58%	1,17
	10	-16,23%	-0,97	8,02%	0,57	23,83%	2,62**	5,21%	0,45
2002 election	0	-1,10%	-0,39	3,77%	1,69	0,70%	0,35	1,12%	0,79
	1	1,80%	0,36	11,22%	2,90 **	-2,13%	-0,61	3,63%	0,92
	5	-0,51%	-0,05	17,24%	2,32 *	1,24%	0,19	5,99%	1,06
	10	-0,81%	-0,06	2,29%	0,22	7,76%	0,85	3,08%	1,22
2006 election	0	0,61%	0,26	-2,42%	-1,2	-0,24%	-0,19	-0,68%	-0,75
	1	1,47%	0,36	-1,90%	-0,55	0,44%	0,2	0,00%	0
	5	2,97%	0,38	-6,30%	-0,94	4,22%	1,02	0,30%	0,09
	10	1,94%	0,18	-13,91%	-1,51	5,48%	0,95	-2,16%	-0,36
2010 election	0	0,47%	0,32	2,17%	1,91	1,49%	0,97	1,37%	2,78**
	1	-0,13%	-0,05	1,24%	0,63	1,85%	0,7	0,99%	1,68
	5	-3,13%	-0,65	-1,70%	-0,45	11,35%	2,23*	2,17%	0,47
	10	-2,13%	-0,32	-12,66%	-2,43*	4,56%	0,65	-3,41%	-0,68
2014 election	0	-1,45%	-0,78	-8,12%	-3,69**	-7,17%	-5,27**	-5,58%	-2,68**
	1	0,05%	0,02	-4,46%	-1,17	-9,10%	-3,85**	-4,50%	-1,70
	5	-11,62%	-1,88	-7,55%	-1,04	-17,98%	-3,98**	-12,38%	-4,08**
	10	-13,29%	-1,55	0,15%	0,01	-25,26%	-4,05**	-12,80%	-1,74
2016 Impeach- ment	0	-4,54%	-1,57	0,81%	0,32	-6,41%	-2,27*	-3,92%	-2,38*
	1	-5,98%	-1,19	3,97%	0,92	-2,46%	-0,5	-1,49%	-0,51
	5	-8,20%	-0,85	-9,56%	-1,16	0,17%	0,02	-5,86%	-1,92
	10	-13,32%	-1	15,18%	1,33	0,91%	0,07	0,92%	0,11
Cross section	0	-0,61%	-0,54	-1,43%	-0,97	-2,54%	-1,78	-1,53%	-2,12*
	1	-0,25%	-0,12	-0,18%	-0,08	-3,09%	-1,77	-1,17%	-1,14
	5	-5,17%	1,83	-3,72%	-0,91	-1,39%	-0,3	-3,43%	-1,58
Political event	10	-10,84%	-2,44 *	-3,78%	0,71	-2,31%	-0,31	-5,64%	-1,68

CEO Successions at SOEs	AR	t	CAR in window (-1, 1)	t	CAR in window (-5, 5)	t	CAR in window (-10, 10)	t
Panel A: BB
Ximenes	4.79%	1.57	-1.86%	-0.35	0.37%	-0.03	10.33%	0.74
Calabi	0%	0	-0.42%	-0.07	0.46%	0.43	-0.62%	-0.04
Zaghen	1.54%	0.61	2.51%	0.58	-2.99%	-0.36	-0.40%	-0.03
Eduardo Guimarães	2.22%	0.89	0.37%	0.93	4.44%	0.59	15.26%	1.33
Casseb	2.61%	1.07	-0.07%	-0.17	-1.49%	-0.17	13.47%	1.13
Rossano	-2.72%	-2.15*	0.25%	0.11	-1.25%	0.30	-2.00%	-0.34
Lima Neto	2.40%	1.41	1.68%	0.57	-2.39%	-0.42	8.36%	1.08
Bendine	-9.36%	-3.14**	-15.18	-2.94**	-4.01%	-0.4	2.47%	0.18
Alexandre Abreu	-2.48%	-1.19	0.38%	0.11	3.16%	0.46	-4.69%	-0.49
Caffarelli	2.14%	0.74	2.77%	0.55	-4.44%	0.65	-6.06%	-0.46
Cross BB	-0.94%	-0.67	-0.96%	-0.63	-0.39%	-0.43	4.21%	1.14
Panel B: Eletrobras
Mario Fernando	1.65%	1.05	0.05%	0.01	4.29%	0.82	6.37%	0.89
Imbassahy	0.31%	0.13	0.63%	0.16	-0.27%	-0.03	0.84%	0.08
Firmino	-0.60%	-0.54	-3.88%	-2.03*	-6.64%	-1.82	-4.36%	-0.86
Claudio Avila	2.02%	0.94	-5.63%	-1.52	-14.36%	-2.03*	-14.28%	-1.46
Altino	0.05%	0.02	3.32%	0.72	4.98%	0.57	1.97%	0.16
Pinguelli	2.70%	1.06	-1.85%	-0.42	-5.92%	-0.7	-13.08%	-1.12
Silas Rondeau	0.39%	0.13	-2.46%	-0.47	-1.95%	-0.19	-3.63	-0.26
Aluisio Novais	0.39%	0.13	-2.46%	-0.47	-1.95%	-0.19	-3.63	-0.26
Valter Cardeal	-1.03%	-0.53	0.63%	0.85	-2.23%	-0.34	-3.68%	-0.41
Muniz Lopes	0.10%	0.04	5.04%	1.25	14.48%	1.87	8.79%	0.82
Costa Carvalho	1.59%	1.00	0.53%	0.19	4.81%	0.91	2.91%	0.4
Wilson Ferreira	5.43%	2.00*	5.33%	1.13	9.96%	1.11	11.93%	0.96
Cross Petrobras	1.33%	2.49*	0.62%	0.58	0.60%	0.28	-1.82%	-0.62
Panel C: Petrobras
Joel Renno	-0.72%	-0.42	-0.09%	-0.03	-0.51%	-0.09	-1.04%	-0.13
Jose Barbosa	0.72%	0.56	7.21%	1.36	17.29%	1.7	17.78%	1.26
Reichtul	-3.22%	1.16	1.86%	0.39	11.24%	1.22	19.33%	1.53
Gros	-0.94%	-0.44	-0.21%	-0.06	1.44%	0.2	0.62%	0.06
Dutra	-1.34%	-0.75	-2.63%	-0.85	0.00%	-0.02	3.11%	0.38
Gabrielli	2.72%	2.22*	3.91%	1.85	-0.68%	-0.17	-1.81%	-0.32
Graça Foster	0.89%	0.92	-8.75%	-5.18**	-4.73%	-1.46	-6.84%	-1.53
Bendine	-5.02%	-2.17*	-6.89%	-1.72	5.65%	0.74	-5.69%	-0.54
Parente	2.15%	0.78	-3.39%	-0.7	-7.09%	-0.77	1.15%	0.09
Monteiro	-17.29%	-13.17**	-15.41%	-6.77**	-28.23%	-6.48**	-32.74%	-5.46**
Cross Petrobras	-2.10%	-1.13	-2.44%	0.013	-0.57%	-0.15	-0.61%	-0.13

[1] 1.
Sergio Foldes Guimarães, Master in Management Science at PUC-Rio, Rio de Janeiro, Brazil.

Brasil

Brasil

Elections and CEO successions in Brazilian state-owned companies

Abstract

Purpose:

Design/methodology/approach:

Findings:

Originality/value: