The Influence of Ownership Concentration on Firm Resource Allocations to Employee Relations, External Social Actions, and Environmental Action


Corporate social responsibility
Ownership structure
Ownership concentration.

How to Cite

Crisóstomo, V. L., & Freire, F. de S. (2015). The Influence of Ownership Concentration on Firm Resource Allocations to Employee Relations, External Social Actions, and Environmental Action. Review of Business Management, 17(55), 987–1006.


Objective – The purpose of this work is to examine the influence of
ownership concentration on the funds allocated to CSR in Brazilian firm.
Design/methodology/approach – Econometric models have been
estimated, with an index of CSR as the dependent variable, and
ownership concentration as the explanatory variable, together with
relevant control variables suggested in the literature (profitability,
leverage, growth opportunities, and firm size). A Brazilian CSR database
has been built using data extracted from two different sources, one
relative to CSR data and another that provides ownership structure and
financial data. CSR policy is proxied by an index obtained as the ratio
between funds directed to social action (employee relations, external
social actions, and environmental action) and net sales.
Findings – The findings indicate that CSR is positively influenced by
firm ownership concentration in Brazil.
Practical implications – The positive influence of ownership
concentration on CSR may be an indication that large controlling
shareholders of Brazilian firm may be considering CSR as an effective
way to improve the image and reputation of the firm and its owners. This
belief may be stimulating CSR projects and their disclosure in Brazil.
Originality/value – This work is an additional contribution to the
debate about the role played by ownership structure on CSR. Taking
into account that the central point of Stakeholder Theory is a firm’s
concern with all its stakeholders, the research builds on Stakeholder
and Agency Theories by assessing the influence of large controlling
shareholders on a firm’s social concerns.

If a paper is approved for publication, its copyright has to be transferred by the author(s) to the Review of Business Management – RBGN.

Accordingly, authors are REQUIRED to send RBGN a duly completed and signed Copyright Transfer Form. Please refer to the following template: [Copyright Transfer]

The conditions set out by the Copyright Transfer Form state that the Review of Business Management – RBGN owns, free of charge and permanently, the copyright of the papers it publishes. Although the authors are required to sign the Copyright Transfer Form, RBGN allows authors to hold and use their own copyright without restrictions.

The texts published by RBGN are the sole responsibility of their authors.

The review has adopted the CC-BY Creative Commons Attribution 4.0 allowing redistribution and reuse of papers on condition that the authorship is properly credited.