Determinants of RPTs in the Brazilian stock market: analysis of control-ownership wedge, firm value, performance and corporate governance

Q4 Economics, Econometrics and Finance

Estudos Economicos Pub Date : 2023-09-01 DOI:10.1590/1980-53575331sfis

Silvia Amélia Mendonça Flores, Igor Bernardi Sonza

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Abstract

Abstract This study aims to analyze the influence of the control-ownership wedge, firm value, performance, and corporate governance in the value of Related Party Transactions (RPTs) of companies with pyramidal structures. The research is conducted in Brazil over an eight-year period from 2010 to 2017 and uses an unbalanced sample of 153 firms or 929 firm-year observations. The paper uses an OLS panel and a quantile regression as robustness. Our findings show that control-ownership wedge, performance, and corporate governance are determinants of the total value of RPTs. The deviation has a positive influence, showing that the excess of control rights increases the total value of RPTs. On the other hand, performance has a negative effect, showing that less profitable companies have incentives to participate in RPTs. In corporate governance, the relationship is positive, contrary to the expected in the literature. It signals that the corporate governance environment in Brazil has not reduced the total value of RPTs in pyramidal companies. The research contributes to the literature by presenting evidence of an emerging market and relating relevant themes in corporate finance, characterizing the use of RPTs by companies with pyramidal structures.

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巴西股票市场RPTs的决定因素:控制权-所有权楔子、公司价值、绩效和公司治理分析

摘要本研究旨在分析控制-所有权楔子、公司价值、绩效和公司治理对金字塔结构公司关联交易价值的影响。该研究是在巴西进行的，为期8年，从2010年到2017年，使用了153家公司的不平衡样本或929家公司的年度观察结果。本文使用OLS面板和分位数回归作为稳健性。我们的研究结果表明，控制权-所有权楔子、绩效和公司治理是rpt总价值的决定因素。偏差具有正向影响，表明控制权的超额增加了rpt的总价值。另一方面，业绩有负面影响，表明利润较低的公司有参与RPTs的动机。在公司治理方面，这一关系是正相关的，这与文献的预期相反。这表明巴西的公司治理环境并没有降低金字塔型公司rpt的总价值。该研究通过提出新兴市场的证据和公司融资的相关主题，描述金字塔结构公司使用rpt的特征，为文献做出了贡献。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Estudos Economicos Economics, Econometrics and Finance-Economics, Econometrics and Finance (all)

CiteScore

0.50

自引率

0.00%

发文量

审稿时长

41 weeks

期刊介绍： Estudos Econômicos publishes original manuscripts in all areas of economics, written by Brazilian and foreign researchers. Created in 1971, Estudos Econômicos is published every trimester by the Department of Economics of the School of Economics, Business and Accounting of the University of Sao Paulo. Its abbreviated title is Estud. Econ., which should be used in bibliographies, footnotes and bibliographical references and strips.