Blockholders and firm value Evidence from Brazil
This study investigates the relationship between the presence of large shareholders (blockholders) and the value of Brazilian companies. The dataset encompasses all non-financial publicly traded companies in Brazil with available data from 2010 to 2019 (i.e., 1,091 firm-year observations). We estima...
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| Published in: | Revista Brasileira de Finanças Vol. 20; no. 2; pp. 48 - 76 |
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| Main Authors: | , , |
| Format: | Journal Article |
| Language: | English |
| Published: |
19-06-2022
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| Online Access: | Get full text |
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| Summary: | This study investigates the relationship between the presence of large shareholders (blockholders) and the value of Brazilian companies. The dataset encompasses all non-financial publicly traded companies in Brazil with available data from 2010 to 2019 (i.e., 1,091 firm-year observations). We estimate fixed-effects models and apply the Propensity Score Matching (PSM) to alleviate selection bias concerns. Our findings indicate a negative association between the presence of blockholders and Tobin's Q. This outcome deviates from prior literature on international firms but supports previous research on Brazilian firms. We observe that companies with family-type blockholders exhibit lower Tobin's Q values compared to others. |
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| ISSN: | 1679-0731 1984-5146 |
| DOI: | 10.12660/rbfin.v20n2.2022.83645 |