Financial Market Reform ? The Brazil Case: What ?Works? and What Doesn?t.

Author examines the evidence linking the corporate governance literature and financial market development. Through an analysis of recent reforms in Brazil, the author suggests that the prescriptions of the large N studies are not appropriate when taken to the country level. Although the Brazil case confirms much of the large N literatures? results, it links important variables with their causal paths. This case also demonstrates the political practicality of adopting the literature?s prescriptions for market development. The result is that statistically less-significant changes are often more easily implemented than those with stronger support in the large N studies. Finally, this case suggests an innovative solution to market development amidst strong interest-group opposition. [ABSTRACT FROM AUTHOR]