Rating based indexing of Istanbul Stock Exchange, lessons from its failure and Novo Mercado's sucess in to advance corporate governance reforms

This paper compares the objectives, processes and outcomes of different approaches adopted by BOVESPA and ISE for differentiating “better governed” firms listed on their respective boards. Novo Mercado of BOVESPA, launched at the end of December 2000, was able to attract over 30 companies within 5 years, whereas ISE CG Index, announced in February 2005, is not yet launched due to lack of interest from the issuers.