Is Corporate Governance Synonymous with Profitability? A Performance Analysis of B3 Indexes

Authors

DOI:

https://doi.org/10.37497/jsim.v13.id158.2026

Keywords:

Brazil, corporate governance, Ibovespa, investments, governance indexes

Abstract

Objective: To analyze and compare the financial performance of B3’s corporate governance indexes (IGC, ITAG, IGCT, and IGC-NM) in relation to the Ibovespa, to verify whether corporate governance indexes outperform the main Brazilian stock market index.

Method: An empirical study with a quantitative approach, employing a descriptive comparative method based on time series. Data from the Quantum Axis platform were used up to May 31, 2024, considering return, volatility, Sharpe and Treynor ratios, and maximum drawdown over 60-, 48-, 36-, 24-, and 12-month windows.

Results: ITAG, IGC, and IGCT outperformed Ibovespa in several time windows, while IGC-NM showed inferior performance in terms of both nominal and risk-adjusted returns. Volatility levels were similar across the indexes, but more pronounced drawdowns occurred in the governance indexes.

Originality/Relevance: The study updates the literature by considering multiple time windows up to 2024, including the pandemic period, thereby expanding the analysis of index resilience.

Theoretical/Methodological Contributions: It structures a conceptual model that connects governance theories (Agency Theory, Stakeholder Theory, Resource Dependence Theory, and Stakeholder Salience Theory) to financial metrics, providing a basis for further analyses.

Social/Managerial Contributions: It provides insights for investors, regulators, and policymakers, reinforcing the importance of corporate governance for more transparent and responsible markets.

Author Biographies

Danilo Cesar da Silva Silva, Universidade Salvador (UNIFACS), Salvador, BA, Brazil

holds a Master degree in Administration from Universidade Salvador (UNIFACS), Brazil. He also earned an MBA in Digital Marketing and an MBA in Controllership for Business Management and holds a Bachelor degree in Administration. He currently serves as Investment Risk Coordinator at Néos Previdência Complementar (Neoenergia/Iberdrola Group), where he is responsible for investment risk management, compliance oversight, and portfolio monitoring. He has over 16 years of professional experience in the financial market, with emphasis on investment management, financial analysis, risk governance, and institutional compliance. His research interests include corporate governance, financial performance, institutional sustainability, and investment risk management. He holds professional certifications, including CFP® (Certified Financial Planner) and CEA (ANBIMA). In addition to his professional activities, he contributes to academic and institutional discussions in finance, governance, and sustainable investment practices.

Francis Moura Santos Santos, Universidade Salvador (UNIFACS), Salvador, BA, Brazil

Master degree in Administration from Universidade Salvador (UNIFACS), Brazil. She also holds postgraduate specializations in Functional Sports Nutrition (2014) and Functional Clinical Nutrition (2011), and a Bachelor degree in Nutrition (2009). She has extensive professional experience in Clinical and Sports Nutrition, working in private practice and in partnership with multidisciplinary clinics. She also acts as a consultant for Food and Nutrition Units, conducting training programs and nutritional audits. She has served as a lecturer in postgraduate programs at Faculdade Estácio and as an instructor in an International Certification Program in Nutrition Coaching at Link Education. In addition, she regularly delivers lectures and participates in academic and professional events in the fields of Nutrition and Physical Education.

Hélder Uzêda Castro Castro, Universidade Salvador (UNIFACS), Salvador, BA, Brazil

Ph.D. in Regional and Urban Development and completed postdoctoral research in Geography and Regional Planning. He earned a Master degree in Administration and holds undergraduate degrees in Economics, Business Administration, and Technology. He is a Full Professor and researcher in the Graduate Programs in Administration (PPGA) and in Law, Governance and Public Policies (PPGDGPP) at Universidade Salvador (UNIFACS), Brazil. He served as an Adjunct Professor at the School of Social Sciences and Humanities (FCSH.NOVA) and is an Associate Member of global discussion networks at the Portuguese Institute of Corporate Governance (IPCG), the Shared Services & Outsourcing Network (SSON, United Kingdom), and the International Society for Development and Sustainability (ISDS, Japan). His research focuses on Regional Economics, Governance, and Innovation, with particular emphasis on Economic and Business Development.

Sustainability (ISDS, Japan). He has experience in the fields of Regional Economics, Governance, and Innovation, with an emphasis on Economic and Business Development.

Manoel Joaquim Fernandes de Barros Barros, Universidade Salvador (UNIFACS), Salvador, BA, Brazil

Full Professor at Universidade Salvador (UNIFACS), Brazil. He completed a postdoctoral fellowship at Grenoble École de Management, France (2016). He holds a Ph.D. in Education from the Federal University of Bahia (Brazil) and doctoral research internship abroad at Université de Montréal (Canada), a Master degree in Administration from the Federal University of Bahia, and a specialization in Administration from Universidade Salvador. He also holds a Bachelor degree in Business Administration and a degree in Data Processing. His academic and professional experience focuses on Administration, with emphasis on higher education management and information systems administration. His research interests include university governance, organizational management, and the strategic use of information systems in institutional environments.

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Published

2026-03-19

How to Cite

Silva, D. C. da S., Santos, F. M. S., Castro, H. U. C., & Barros, M. J. F. de B. (2026). Is Corporate Governance Synonymous with Profitability? A Performance Analysis of B3 Indexes. Journal of Sustainable Institutional Management , 13, e0158. https://doi.org/10.37497/jsim.v13.id158.2026

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Vol. 13 (2026): January - December (in progress)

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