Brazil - victor z. chen
advertisement
C ORPORATE GOVERNANCE AND O WNERSHIP S TRUCTURES IN B RAZILIAN M ULTINATIONALS Emerging Market Global Players: Home-Country Institutions and Corporate Governance Hsia Hua Sheng Hsia.sheng@fgv.br Professor of International Financial Management (Fundacao Getulio Vargas, FGV/ EAESP), Brazil The Effects of Institutions on Brazilian MNEs Corporate Governance Institutions • Inefficient Capital Markets • Less Protection to Investor • Inecffective Legal Systems • Local Resources are not Freely Available • Poor Supply of Qualified Labor Corporate Governance • High ownership concentration • "Complex” Pyramidal Schemes • The presence of Shareholders Agreements • Government as Minority Shareholders Brazilian National Bank of Economic Development Participations (BNDESPar) Government Pension Funds • Families Business Group are the largest shareholder Hsia Hua Sheng , FGV-EAESP, AIB 2014 Vancouver 2 Ownership Structure – Example (Grendene – 2011) 30%;40% 24%;32% A. G. Bartelle Part. Verona Part Alexandre Grendene Bartelle Grendene 20%;28% 12%;16% Pedro Gendene Bartelle 30%;40% 3%;4% Agreement Grendene Negócios 26%;0% Float 11%;15% A. G. Bartelle Part. Alexandre Gendene Bartelle Verona Part 3 9%;13% Pedro Gendene Bartelle 4%;6% Maria C. Camargo Giovana Bartelle 1%;2% Pedro Bartelle Maria C. Camargo 2%;3% Pedro Bartelle 1%;2% Giovana Bartelle % Largest Shareholder - Total Voting Shares 11%;15% 6%;8% 3%;4% We have to consider the shareholders agreement and break the pyramidal structures to have a more accurate view of the ownership structure of the Brazilian firmas * x% ; y% = % total voting shares ; % in the control Hsia Hua Sheng , FGV-EAESP, AIB 2014 Vancouver 3 Ownership Structure – Example (Usiminas – 2011) 12%;0% 10%;0% 1%;2% CSN Prev. BB VICUNHA National Steel CFL Part. Clarice Steinbruch Fabio Steinbruch CFL Part. Dorothéa Steinbruch 2%;3% Prosid Investiments Siderar S.A.I.C. Agreement Usimina Ternium Investments. 17%;26% 5%;8% Caixa Prev. Usiminas Nippon Steel Fabio Steinbruch RIO PURUS Rio Purus 24%;36% 1%;1% Nippon Usiminas 7%;10% RIO IACO Vicunha Steel Rio Purus Mitsubishi Corp. Brasil 4%;6% % Largest Shareholder - Total Voting Shares Dorothéa Steinbruch 4 Leo Steinbruch 12%;0% Confab. Float Nippon Steel Mitsubishi Corp. Siderca S.A.I.C. Japan Int. JICA Sojitz Corp. Others Mitsubishi Corp. Dorothéa Steinbruch Metal One 5%;8% Legend Family Civita Pension Funds Leo Steinbruch Foreign Investors % - Control % - Voting Shares Other Ultimate Shareholders We have to consider the shareholders agreement and break the pyramidal structures to have a more accurate view of the ownership structure of the Brazilian firmas Hsia Hua Sheng , FGV-EAESP, AIB 2014 Vancouver 4 Ownership Structure – Example (JBS – 2011) Example of a complex “pyramidal structure” JBS FB Part. José Batista ZMF Part. José Batista Flora Batista José Batista WWMB Part. Wesley Batista José Batista JJBJ Part. J. Batista Junior J&F Part VNMB Part. Vanessa Batista Bertin Fundo ZMF Fundo VVMB Part. Vivianne Batista VLMB Part. JJMB Part. Valéria Batista J. Batista Sobrinho ZMF Fundo Blessed Holdings José Batista Bracol Banco Original BNDESPAR J&F Part Float J&F S.A Float José Batista José Batista Joesley Batista José Batista Joesley Batista Wesley Batista Wesley Batista Vanessa Batista Juracy Bertin Joao Bertin Natalino Bertin Reinaldo Bertin Silmar Bertin Fernando Bertin Vanessa Batista Vivianne Batista Cláudia Bertin Cleonice Bertin Fernanda Bertin Renato Bertin J.H. Bertin Maria Bertin Wesley Batista Vivianne Batista Valéria Batista Fernando Bertin N. Bertin Jr. Giovanni Bertin Vitor Bertin Vanessa Batista Roberta Bertin Aline Bertin Vivianne Batista Berf Part. Mario Bertin JBF PArt Heber Part JUFERB ZMF Part. REIVO SRB VIAMAR José Batista Flora Batista WWMB Part. BNDES Joesley Batista Valéria Batista Silmar Bertin PROT Wesley Batista JJBJ Part. J. Batista Junior J. Batista Sobrinho Development Banks Family Bertin Foreign Investors Legend Vanessa Batista VVMB Part. Vivianne Batista VLMB Part. Valéria Batista JJMB Part. ZMF Fundo Joesley Batista José Batista José Batista Joesley Batista Valéria Batista Rubia Bertin Family Batista VNMB Part. Other Ultimate Shareholders Hsia Hua Sheng , FGV-EAESP, AIB 2014 Vancouver 5 Ownership Effect on Internationalization Brazilian Context Government Participation Family Business Ownership Concentration (Negative Relationship ) (Positive Relationship ) (Positive Relationship ) Internationalization Hsia Hua Sheng , FGV-EAESP, AIB 2014 Vancouver 6
