Dual Class Firms: A Study on the Impact Value of Brazilian Companies

Authors

  • Tadeu Grando Universidade de Passo Fundo - UPF e Universidade do Vale do Rio dos Sinos - Unisinos Author
  • Antônio Carlos Brunozi Júnior Universidade Federal de Viçosa - Campus de Rio Paranaíba Author
  • Débora Gomes Machado Universidade Federal do Rio Grande – FURG Author
  • Francisco Zanini Unisinos Author

DOI:

https://doi.org/10.4025/enfoque.v35i2.30016

Keywords:

Conflitos de Interesses, Dual Class, Estrutura de Propriedade, Teoria de Agência.

Abstract

From the ‘Agency Theory' and the conflict of interest assumption the aim of this study is verify the impact of the use of two classes of shares (dual class) on the value in brazilian companies. The sample consisted of non-financial traded companies, with concentrated ownership structure, data are available in Economática®, totaling 354 companies and 1,915 observations. The data refer to the period 2005 to 2012. It terms of methodology, to research the hypothesis of the study it was used a regression by ordinary least squares, with panel data. The results indicate that companies using two classes of shares, such as separation mechanism between the cash flow and the equity control, have lower value then the ones not using such a mechanism. Additionally, it can be inferred that the governance levels and the higher dividend payment policy in the preferred shares are not able to mitigate the higher level of conflicts of interest and agency costs in dual class companies.

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Author Biographies

  • Tadeu Grando, Universidade de Passo Fundo - UPF e Universidade do Vale do Rio dos Sinos - Unisinos
    Doutorando em Ciências Contábeis – Universidade do Vale do Rio dos Sinos – Unisinos. Docente da Universidade de Passo Fundo – UPF.
  • Antônio Carlos Brunozi Júnior, Universidade Federal de Viçosa - Campus de Rio Paranaíba
    Doutorando em Ciências Contábeis - Universidade do Vale do Rio dos Sinos – Unisinos. Docente da Universidade Federal de Viçosa – Campus de Rio Paranaíba.
  • Débora Gomes Machado, Universidade Federal do Rio Grande – FURG
    Doutora em Ciências Contábeis e Administração pela Universidade Regional de Blumenau – FURB. Docente do Instituto de Ciências Econômicas, Administrativas e Contábeis – ICEAC, da Universidade Federal do Rio Grande – FURG.
  • Francisco Zanini, Unisinos
    Doutor em Ciências Contábeis e Organização Empresarial - Universidad Autónoma de Madrid. Docente da Universidade do Vale do Rio dos Sinos – Unisinos.

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Additional Files

Published

2016-08-24

Issue

Vol. 35 No. 2 (2016)

Section

Original Articles

License

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How to Cite

Grando, T., Brunozi Júnior, A. C., Gomes Machado, D., & Zanini, F. (2016). Dual Class Firms: A Study on the Impact Value of Brazilian Companies. Enfoque: Reflexão Contábil, 35(2), 67-86. https://doi.org/10.4025/enfoque.v35i2.30016