Shareholder coalitions and dividends: evidence from the Brazilian capital market

ABSTRACT This article examines the effect of heterogeneity shareholder coalitions on distribution dividends in companies listed Brazil. To analyze relationship between large shareholders and dividends, it is essential to consider way control ensured. Large can share by forming coalitions, differences composition alter incentives cooperating parties have for activity monitoring. Based agreements, we explore among presenting elements that characterize role shared corporate governance a market environment described concentration single shareholder. study presents potential economic social impacts, as particular interest outsider shareholders, even investors, know how insiders use dividend policy, since profits tends mitigate agency problems. identify resorted agreements. The analysis model was estimated using two-stage system generalized method moments (GMM-Sys) with unbalanced panel data period from 2008 2019. We discovered number coalition leveraging voting rights biggest are negatively related distributed, positively distributed. These results contribute principal-principal approach theory highlight capacity pursue private benefits depend their own characteristics.