Evolution in compliance disclosure by Brazilian listed companies during the corruption investigation “Operation Lava Jato (Car Wash)”

Abstract

This study investigates the evolution of compliance disclosure by Brazilian public companies in the context of Operation Lava Jato (Car Wash), comparing the opening year and the last year of its protagonism. Using the interpretive paradigm, the Management Reports of 2014 and 2019 of 104 companies listed in the New Market segment of B3 were analyzed through the content analysis technique. The findings indicated a substantial increase in compliance disclosure in the analyzed companies, mainly in categories such as Anti-corruption Policy, Compliance Organizational Culture, Internal Compliance Programs and Processes, and Compliance Legislation and Standards. It was revealed that the disclosure of Monitoring and Risk Management Practices played a relevant role in the voluntary disclosure practices of these entities. The increased compliance disclosure by companies with a strong relationship with the Public Power suggests that coercive pressures of a government nature tend to maximize the adoption of compliance practices and disclosure. The findings contribute from a theoretical perspective by identifying the progress in voluntary compliance disclosure as a response strategy to institutional pressures, especially in companies exposed to coercive governmental pressures. From a practical viewpoint, it contributes by revealing the compliance categories emphasized in the disclosures by Brazilian companies, helping corporate report developers, and informing other economic agents. On a social level, the increased compliance disclosure points to progress in creating conditions that seek to increase confidence among economic agents, thus favoring economic growth.