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Business Students Expectations of Brazilian Corporate Governance: Insights for a Sustainable Path in an Emerging Business Environment

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  • Eduardo Flores

    (School of Accounting and Actuarial Science, University of São Paulo, São Paulo 05508-220, Brazil)

  • Douglas Augusto De Paula

    (School of Accounting and Actuarial Science, University of São Paulo, São Paulo 05508-220, Brazil)

  • Joelson de Oliveira Sampaio

    (School of Economics, Getulio Vargas Foundation (EESP), São Paulo 01313-902, Brazil)

Abstract

This paper aimed to better understand business students’ expectations of Brazilian corporate governance after recent scandals, focusing on capturing their perceptions after the Lava Jato (Car Wash) police investigation. Adapting a prior survey applied to business students, data were collected from three colleges in São Paulo, the largest city in Latin America, with a total of 328 responses. The data were initially submitted to confirmatory factor analysis (CFA), after which we employed a structural equation model (SEM). Our main finding indicates that students are skeptical of an increase in Brazilian corporate governance after this police operation. This result is supported by the prior literature and denotes student consciousness of the need for deep reforms in the business environment and compliance rules. Furthermore, strategic human resources management is the most prominent corporate governance tool today, and the survey revealed disbelief that the Board of Directors and internal audits will act as potential inhibitors of fraud and corruption. These findings are associated with a broad view related to sustainability which denotes that future firm leaders, who are currently business students, comprehend that an ethical business environment needs to be built by professionals who are able to understand the role of corporate governance mechanisms. This paper contributes to the literature by offering a holistic assessment of business student perceptions and encourages a discussion of current models and instruments of Brazilian corporate governance. The scarcity of studies involving education and governance can be considered a constraint to building sustainable companies from a long-term perspective. Comprehending business students’ perceptions about corporate governance mechanisms can be considered a path to increasing the number of business courses with topics aligned with practical effects on environmental, social, and governance subjects, mainly when these mechanisms are evaluated from an integrated perspective.

Suggested Citation

  • Eduardo Flores & Douglas Augusto De Paula & Joelson de Oliveira Sampaio, 2022. "Business Students Expectations of Brazilian Corporate Governance: Insights for a Sustainable Path in an Emerging Business Environment," Sustainability, MDPI, vol. 14(14), pages 1-19, July.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8817-:d:866264
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    References listed on IDEAS

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    Cited by:

    1. Gianni Onesti & Riccardo Palumbo, 2023. "Tone at the Top for Sustainable Corporate Governance to Prevent Fraud," Sustainability, MDPI, vol. 15(3), pages 1-16, January.

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