Firms’ Ownership Characteristics and Performance: Evidence from Brazil

Firms’ Ownership Characteristics and Performance: Evidence from Brazil

• Author
• Dante Mendes Aldrighi
• Co-authors
• Alessandro Vinícius Marques de Oliveira
• Abstract

• Relying on a dataset from reports that publicly-traded companies mandatorily file with the Brazilian capital markets’ regulatory and enforcement authority, we provide an in-depth account of their patterns of ownership and examine whether they are associated with valuation and return on assets. Albeit we document the persistence of a highly concentrated corporate ownership structure, some features did change over the sample period: shareholders’ agreements increasingly grew in importance amid the controlling shareholders while the fraction of non-voting shares sharply declined. By estimating an empirical model that takes into account the potential endogeneity of the ownership variables and checking for robustness with propensity score matching analyses, we find that none of these variables is systematic associated with accounting performance, whereas valuation appears to be related to the company’s position at the pyramidal ownership structure.

• Keywords
• Ownership concentration, controlling shareholder, minority shareholders’ expropriation, pyramidal ownership, shareholders’ agreement, family control
• Subject Area
• Corporate Finance, Intermediation, and Banking

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