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Ownership concentration of equity shares with and without voting rights: Does it influence CSR voluntary disclosure?

    Dermeval Martins Borges Junior   Bio
    ; Denise Mendes da Silva   Bio

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Abstract

The aim of this study is to examine the relationship between ownership and control concentration and voluntary disclosure of corporate social responsibility (CSR) reports. Our sample was comprised of 207 listed firms with data among the period between 2012 and 2019. We collected firm’s financial data and CSR reports, which were analyzed through logistic regression models. The main results suggest that the higher the concentration of equity shares with voting rights in the hands of the largest shareholder, or even the aggregate shares of the three largest ones, the less likely the firm is to voluntarily disclose CSR reports. This research demonstrates the relevance of legitimacy theory to explain aspects concerning capital markets and corporate reports disclosure. It also indicates a possible principal-principal conflict, in which the largest shareholders are not inclined to disclose CSR reports that could bring informational benefits to minority shareholders. Finally, this study highlights the need to protect minority shareholders in respect to their demands for voluntary CSR information.

Keyword : Ownership Concentration, Voting Rights, CSR Disclosure. Concentração de propriedade, Direito a voto, Divulgação de RSC

How to Cite
Junior, D. M. B., & Silva, D. M. da. (2023). Ownership concentration of equity shares with and without voting rights: Does it influence CSR voluntary disclosure?. Brazilian Business Review. https://doi.org/10.15728/bbr.2022.1404.en

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