Tamanho da fonte: 

This research aims to answer if the usage of corporate governance mechanisms by companies in the Brazilian market can help them avoid insolvency. To achieve such goal, this paper proposes an insolvency prediction model, which is based on a logistic regression that uses a dummy variable pointing whether the firm belongs or not to the categories Novo Mercado (New Market) or Nível 2 (Level 2). Besides the aforementioned variable, accounting ratios previously considered relevant in the prediction of insolvency by other researches regarding the Brazilian market are included in the model as well. The sample used in this paper includes the companies listed at BM&FBOVESPA in the period 2001-2013. However, it does not include financial institutions, companies with unavailable information, and firms whose shares were not traded in BM&FBOVESPA during the period. The model estimations presented statistically significant evidences that firms with better corporate governance practices have a lower probability of being in an insolvency situation. This research also used financial ratios as control variables to the model and found evidences, regarding their relation with insolvency, similar to other previous studies present in the literature.