Influence of Ownership Structure on the Debt Level and Efficiency of Electricity Companies

Márcio Marcelo Gross () and Adriano Mendonça Souza
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Márcio Marcelo Gross: Graduate Program in Production Engineering, Federal University of Santa Maria, Santa Maria 97105-900, Brazil
Adriano Mendonça Souza: Statistics Department, Federal University of Santa Maria, Roraima Avenue, Santa Maria 97105-900, Brazil

Sustainability, 2025, vol. 17, issue 20, 1-14

Abstract: Corporate ownership structure has been extensively studied as a complementary indicator of corporate performance; however, there is a lack of research on specific sectors. This research aims to understand the effects of ownership structure on debt levels and the efficiency of companies in the electricity sector. The efficiency of electricity companies can help reduce dependence on fossil fuels. The analysis covers 7777 observations of 38 companies from 1996 to 2023, including all publicly traded electricity companies on the Brazilian stock exchange (B3). The method is based on a panel data regression model with statistical tests to support the results. The results were robust and significant. Regarding efficiency, ownership structure revealed a negative relationship (−0.107); however, as company capital becomes more dispersed, it ceases to influence company efficiency. In terms of debt levels, the relationship was positive (0.095) and, despite the dispersion of capital among the five largest common shareholders (0.103), continues to exert influence. This research contributes to the scientific literature by confirming relationships and providing evidence between new and previously unexplored variables specific to the electricity sector. It is expected to create a benchmark for future analyses, highlighting the importance of ownership structure in the performance of electricity sector companies, which can contribute to improving the management of these companies, making them more competitive and sustainable.

Keywords: electricity; ownership structure; panel data; efficiency; debt levels (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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