Country level governance variables and ownership concentration as determinants of firm value in Latin America

Saona, Paolo; Martín, Pablo San

doi:10.1016/j.irle.2016.06.004

Cited by 36 publications

(41 citation statements)

References 72 publications

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“…There exists a positively significant association between firm's age ( β 9 ) and firm value (consistent with Eisenberg, Sundgren, & Wells, 1998). For country‐level variables, the impact of regulatory quality situation ( β 12 ) in the country has a positively significant influence on firm value (consistent with Saona & San Martín, 2016). There exists a positive association between the situation of press freedom ( β 13 ) in the country and firm value (consistent with Chang, Shim, & Yi, 2019).…”

Section: Resultssupporting

confidence: 71%

CSR permanency, family ownership, and firm value: Evidence from emerging economies

Noor

Saeed

Baloch

et al. 2020

Corp Soc Responsibility Env

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Prior research suggests that undertaking corporate social responsibility (CSR) activities affect firm value. We extend this line of research by considering CSR activities over a longer period (a consistent CSR behavior) and examine the impact of CSR permanency on firm value. Using a cross‐country sample of 600 top‐listed firms from four leading emerging economies, Brazil, Russia, India, and China (BRIC) over the period 2010–2018, we find that CSR permanency positively impacts firm value after controlling for various firm and country characteristics. This effect is observed more pronounced for family‐owned firms. Additional analysis reveals that permanent CSR activities in both social and environmental dimensions positively influence firm value, however, CSR permanent activities in the social dimension exert a larger impact on firm value. Our results make important contributions to theory and practice.

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Section: Resultssupporting

confidence: 71%

CSR permanency, family ownership, and firm value: Evidence from emerging economies

Noor

Saeed

Baloch

et al. 2020

Corp Soc Responsibility Env

View full text Add to dashboard Cite

show abstract

“…In such cases, estimates are more biased and more likely to provide the wrong statistical inference than O.L.S. estimates that make no correction for endogeneity (Saona & San Mart ın, 2016). Hence, instrumental variable methods are not used in the econometric analysis.…”

Section: Resultsmentioning

confidence: 99%

“…According to Lefort and Walker (2007), this highly concentrated ownership system works as an efficient governance tool against weak protection of investors' rights and feeble law enforcement. Empirical findings for the Latin American region demonstrate that the ownership concentration is an essential driver of firm value supported by the monitoring hypothesis (Saona & San Mart ın, 2016).…”

Section: Ownership Structure Features and Real Activities Manipulationmentioning

confidence: 89%

“…Regarding these two theoretical hypotheses, we believe that in the context of Latin American countries the monitoring hypothesis is more plausible. Differing from most of the previous literature focused on the U.S. and developed markets, Latin American countries are characterised by the civil-law legal system, in which most of the monitoring is performed through internal governance systems, low levels of investor protection of minority shareholders, and concentrated as well as pyramidal ownership structures (Ataay, 2018;Lefort, 2005;Saona & San Mart ın, 2016). For instance, according to Lefort (2005), corporate governance in Latin America is characterised by a high level of ownership concentration in which many companies are controlled by one of the industrial or financial conglomerates.…”

Section: Ownership Structure Features and Real Activities Manipulationmentioning

confidence: 99%

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Real earnings management and corporate governance: a study of Latin America

Mellado

Saona

2019

Economic Research-Ekonomska Istraživanja

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This article analyses the impact of ownership structure features and institutional settings on real activities manipulation. The analysis is based on a sample of listed companies in the underexplored Latin American market for the period of 2004-2016. Paneldata-based G.M.M. System Estimation is used in the empirical analysis. The results confirm that the monitoring role of the majority owner is crucial in mitigating managerial opportunistic behaviour. Here, opportunistic behaviour refers to engaging in real activities manipulation that reduces the informative content of financial statements. However, analysis of insider ownership revealed that managers had a negative impact on transparency. We observed that as insider ownership increases, managers engage more actively in real earnings management. We also find that the institutional ownership and the quality of the regulatory system proved to be effective mechanisms in reducing real activities manipulation. ARTICLE HISTORY

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“…G€ ursoy & Aydogan, 2002). Existing studies reveal mixed results when looking at ownership concentration and company performance risks (Kapopoulos & Lazaretou, 2007;Saona & San Mart ın, 2016). The prior studies concentrate mainly on concentration-performance aspects of immediate ownership without looking specifically at ultimate ownership.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Ultimate owner and risk of company performance

Staszkiewicz

Szelągowska

2019

Economic Research-Ekonomska Istraživanja

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The purpose of this paper is to investigate the links between a company's ultimate owner and the risk involved with financial performance. The study tests hypotheses on the relation between ultimate ownership origin and risk of return on assets. The research adopts cross-sectional data from a unique sample of 32,614 companies across 43 European countries with ultimate owners from 105 countries. The results indicate that the domestic ultimate owner is, in general, less likely to be a risk-taker than overseas investors. The research develops the nature of ownershipperformance relations in the specific economic context of Europe. The results add robust evidence on attitudes towards performance risk of Europe wide ultimate owners.

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Country level governance variables and ownership concentration as determinants of firm value in Latin America

Cited by 36 publications

References 72 publications

CSR permanency, family ownership, and firm value: Evidence from emerging economies

CSR permanency, family ownership, and firm value: Evidence from emerging economies

Real earnings management and corporate governance: a study of Latin America

Ultimate owner and risk of company performance

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