
Contents
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13.1 Introduction 13.1 Introduction
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13.2 The Emergence and development of business groups in Brazil 13.2 The Emergence and development of business groups in Brazil
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13.2.1 Brazilian business groups during the state‐led industrialization phase 13.2.1 Brazilian business groups during the state‐led industrialization phase
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13.2.2 Structural changes in the Brazilian economy since the 1990s 13.2.2 Structural changes in the Brazilian economy since the 1990s
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13.2.3 Institutional changes related to corporate governance 13.2.3 Institutional changes related to corporate governance
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13.2.4 Equity stakes of government‐related institutions on private groups 13.2.4 Equity stakes of government‐related institutions on private groups
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13.2.5 Resilience 13.2.5 Resilience
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13.3 Ownership, control, and strategies of Brazilian business groups 13.3 Ownership, control, and strategies of Brazilian business groups
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13.3.1 Ownership and control 13.3.1 Ownership and control
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13.3.1.1 Newly privatized business groups' ownership structures 13.3.1.1 Newly privatized business groups' ownership structures
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13.3.1.2 Pyramidal ownership structures in Brazil 13.3.1.2 Pyramidal ownership structures in Brazil
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13.3.1.3 Boards of directors 13.3.1.3 Boards of directors
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13.3.2 Business diversification 13.3.2 Business diversification
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13.3.3 Internationalization: Trade and foreign direct investment 13.3.3 Internationalization: Trade and foreign direct investment
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13.4 Concluding remarks 13.4 Concluding remarks
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References References
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13 Business Groups in Brazil
Get accessDante M. Aldrighi is Associate Professor of Economics at the University of São Paulo and Researcher at the National Counsel of Technological and Scientific Development, Brazil. His research interests include corporate governance and corporate finance. He has published in journals such as Revista Brasileira de Economia, Brazilian Journal of Political Economy, and Estudos Econômicos. He was also one of the contributors to the Global corruption Report 2009.
Fernando A. S. Postali is Professor of Economics at the Department of Economics, University of São Paulo, Brazil. His current research interests include corporate governance and investment and regulation policy, with special attention to the oil and gas sector. His research has been published in such journals as Energy Economics and Pesquisa e Planejamento Econômico.
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Published:02 September 2010
Cite
Abstract
As in many other countries, business groups in Brazil are typically owned by families and owe much of their evolution and weight in the national economy to government policies. Nonetheless, their structures and strategies seem to present some idiosyncrasies. Focusing on the context wherein business groups in Brazil emerged and have evolved, this article endeavors to shed some light on why their structures and strategies exhibit some peculiarities. As a rule, the current main Brazilian business groups typically originated before 1960; were either founded or strongly supported, through various types of subsidies, by the state; have one ultimate controlling shareholder owning a great number of firms through pyramidal schemes; started to target more systematically export markets only in the 1970s and 1980s; and only after 1990 have pursued a strategy of direct investment abroad.
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