The corporate governance reforms that have swept the US (most led by Sarbanes-Oxley and the accompanying changes in corporate governance requirements for companies listed on the New York Stock Exchange or quoted on Nasdaq) did not go unnoticed by regulators and legislators in Latin America. There have been complete overhauls of the securities laws in Mexico and Colombia since that time – covering all aspects of corporate formation and governance. Chile and Argentina have also made adjustments to their rules. Brazil made changes in corporate governance primarily by launching the Mercado Novo of the Sao Paulo Stock Exchange, with its enhanced corporate governance.
One of the main features of corporate governance reform in Latin America is the recognition that the problems facing Latin American companies and their shareholders tend to be quite different from those of US companies. Much of Sarbanes-Oxley focuses on improving the quality and timeliness of corporate information,...