4. Varig is an airline company based in Brazil. The company is 55.67 percent owned by FRB-Par Investimentos, a local holding company. The rest of Varig's shares are owned as follows: Brazilian Government (30.68 percent); Interunion Capitalizao, a private firm (7.4 percent); Instituto Aerus de Seguridade Social, a pension fund (5.19 per- cent); Estado do Rio Grande do Sul, a state in southern Brazil (0.44 percent); Varig's Employees (0.29 percent); Foreigners (0.34 percent). Varig lists its shares on several Brazilian stock exchanges. Wnership structure, what can you predict about the property rights, financial system, and the prevalence of interfirm networks in Brazil? Varig? Based on your predictions, how do capital holders exercise control over Based on Varig's own a. b. (Hint: Review this chapter's discussion on the cross-national diversity of corporate governance.) Now that you have considered Varig's ownership structure, consider Bayer, the German pharmaceutical firm. Bayer's ownership structure is as follows: Banks and insurance companies (55 percent), individuals (24 percent), investment funds (12 percent), trade and industry (3 percent), others (6 percent). What differences do you notice between Bayer's and Varig's ownership structures? b. What does Bayer's structure tell you about the property rights, financial system, and prevalence of interfirm networks in Germany? 5. a