Blockholders and value creation of publicly traded companies in Brazil

Authors

DOI:

https://doi.org/10.4025/enfoque.v40i2.50518

Keywords:

Blockholders. Mechanisms of Voice and Exit. Value creation. Ownership structure. Corporate governance.

Abstract

Theoretical and empirical studies suggest that blockholders, shareholders with a share of 5% or more, may interfere in managerial efficiency and consequently in corporate value. In this sense, the objective of this research is to evaluate the implications of the presence of blockholders in the creation of value in listed companies Brazil. The sample was made up of brazilian non-financial
companies, whose data are available in Economática®, totaling 334 companies, with 1,899
observations. The data refer to the period from 2010 to 2016. Methodologically, to answer the
purposes of this article, two hypotheses were formulated, and for each hypothesis two ordinary
least squares regressions were set up, with panel data, according to the metrics of value creation
considered in this research, Q of Tobin (Q) and return (R). The general results of this research
indicate a negative relation between the simple presence of blockholders and the value creation
metrics. However, when we identify the presence of active blockholders in brazilian companies,
we can see that in this situation, the relationship is positive for return (R) metric and not significant
for the Tobin Q (Q) metric. The theoretical and empirical contribution of this research was
to demonstrates that the influence of the blockholders in the creation of value of the brazilian
companies is different from the results presented by the United States of America research. The
concentration of the brazilian property structure, the liquidity and the level of activism of blockholders
explain these findings.

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Author Biographies

  • Tadeu Grando, Universidade de Passo Fundo – UPF

    Doutor em Ciências Contábeis pela Universidade do Vale do Rio dos Sinos - Unisinos

    Professor da Universidade de Passo Fundo – UPF

  • Francisco Antônio Mesquita Zanini, Universidade do Vale do Rio dos Sinos – Unisinos

    Doutor em Ciências Contábeis e Organização de Empresas pela
    Universidad Autónoma de Madrid

  • Antônio Carlos Brunozi Junior, Universidade Federal de Viçosa – UFV

    Doutor em Ciências Contábeis
    pela Universidade do Vale do Rio dos Sinos - Unisinos
    Professor da Universidade Federal de Viçosa – UFV
    Programa de Pós Graduação em Administração – UFV

  • Debora Gomes Machado, Professora do PPGCONT da Universidade Federal do Rio Grande - FURG

    Doutora em Ciências Contábeis e Administração pela
    Universidade Regional de Blumenau - FURB
    Professora da Universidade Federal do Rio Grande – FURG
    Programa de Pós-Graduação em Contabilidade – PPGCONT/FURG

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Published

2021-03-05

Issue

Vol. 40 No. 2 (2021): Enf.: Ref. Cont.

Section

Original Articles

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How to Cite

Blockholders and value creation of publicly traded companies in Brazil. (2021). Enfoque: Reflexão Contábil, 40(2), 1-22. https://doi.org/10.4025/enfoque.v40i2.50518