Ownership structure and its effects on the performance of agribusiness firms in Brazil

Purpose This research aims to understand whether ownership structure, interpreted as a social indicator of the composition and organization of these companies, affects the debt and efficiency of agribusiness companies listed on the Brazilian stock exchange (B3). Design/methodology/approach The analysis includes 3,702 observations from 23 companies over the longest available period, from 1996 to 2023. The study employed a regression model using panel data, with the random effects model providing the best fit. Findings Regarding efficiency, ownership structure revealed a positive relationship; as a company's capital diversifies, the influence of ownership structure on efficiency increases (from 0.69% to 0.81%). In terms of debt, the relationship was positive; as shareholder control diversifies, the structure's influence on debt decreases (from 0.21% to 0.1%). Research limitations/implications Few publicly traded agribusiness companies are listed on stock exchanges in Brazil, which limited the sample size. Social implications Research has shown that companies with diversified ownership structures are, on average, more efficient. This indirectly implies that society will have access to products and services at a lower cost if companies have a diversified ownership structure, which should be encouraged by industry regulators. Originality/value No specific research on the ownership structure of agribusiness companies was identified to compare the results found in this study, highlighting its originality.