Principal versus principal conflicts in the brazilian context

Abstract

The purpose of the study is to estimate the magnitude of the votes and the excess of votes of the majority shareholders in Brazilian companies grounded by the agency theory. The ownership structure of Brazilian organizations differs from Anglo-Saxon ones that are the most common studied. Thereby, there is a gap of literature about the conflicts between managers, shareholders and sprayed ownership in the Brazilian context. In Brazil, which has concentrated ownership structure, duality of classes of shares and strong presence of major shareholders, the conflict occurs between majority and minority shareholders. Thus, from a separation of majority shareholder types of Ibovespa companies of the year of 2010, the research is characterized as descriptive and explanatory. The author utilizes bibliographic and documentary resources, using the data system Economática of IAN's as well as Bovespa website for the analysis. The results showed that the capital structure of publicly traded companies is mainly concentrated on equity, occurring in several cases a considerable distance between the voting power and the power of the majority shareholders' cash flow. The results also suggest that publicly traded Brazilian companies have in most cases, a controlling shareholder - with more than 50% of the shares with voting rights of companies - and in many cases when there is not a controlling shareholder, there is a controlling bloc, formed by the three main majority shareholders of the companies.