Ownership Concentration and Corporate Decisions: a clinical study of JBS and BRF companies

Setembro, 2021


Pierre Oberson de Souza

We analyze the two major companies of the Brazilian food processing industry: JBS and BRF. These companies have very different ownership structures, but very similar operations. However, JBS made over twelve times more acquisitions than BRF, which did not increase operational margins nor were positively valued by shareholders. Our results suggest that the main reason for such a different acquisition policy relates to the personal preferences of JBS controlling shareholders since the company’s concentrated ownership structure did not hinder their influence over corporate decisions. The results shed light on the necessity of deeper studies regarding the relationship between ownership concentration and the level of risk companies accept to take.