Effects of Internationalization on Ownership Structure: Evidence from Latin American Firms

Manuscript Type: ReviewResearch Question/Issue: This article addresses the diverse and fragmented literature about the corporate governance of business groups. We collected scholarly work on the subject, proposed a conceptualization of the main research questions they addressed, classified them according to their research themes, and identified future research directions. Research Findings/Insights: Academic research on corporate governance in business groups has been increasing but is still a developing field. Available analyses make use of the main theoretical frameworks in general in corporate governance research. However, there are several areas of analysis that still need stronger conceptualization and empirical work, leaving many opportunities for future studies and a pressing need to substantiate and extend the findings of previous studies. Theoretical/Academic Implications: Our study identifies four avenues for future research on corporate governance in business groups. This includes the examination of the complex relationships and co-evolutionary processes among corporate governance attributes, and organizational and performance outcomes of business groups; the effects of ownership goals on groups' performance outcomes; the role and the actual functioning of boards inside business groups; and the analyses of cross-national comparison and long-term development of the governance of business groups. Practitioner/Policy Implications: This research allows practitioners and policymakers to get a better understanding of the crucial areas regarding business groups and their governance, and offers pathways to examine inside the "black-box" of business groups.

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“…On the impact of internationalization on ownership and governance attributes, see, e.g., Sheng and Silva Pereira ().…”

mentioning

confidence: 99%

Business Groups and Corporate Governance: Review, Synthesis, and Extension

Colli

Colpan

2015

Corporate Governance

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“…In the Brazilian context, we noticed a lack of studies approaching the relationship of export versus corporate governance mechanisms, which indicates the innovative character of the present study. Most Brazilian studies have addressed the relationship between internationalization and corporate governance (Duarte et al, 2019;Maia et al, 2013), as well as the impacts of the quality of corporate governance on internationalization (Grossi, Vilela, & Pereira, 2017;Moizinho et al, 2014;Sheng & Pereira, 2014). With a sample of 245 companies listed from 2005 to 2010, Moizinho et al (2014) found that best practices in CG reflect positively on exports, corroborating Sheng and Pereira (2014).…”

Section: Export and Corporate Governancementioning

confidence: 87%

“…After an extensive research, we failed to find a study in Brazil that investigated the relationship between board composition and the level of exports. Brazilian studies have either addressed governance in the form of indexes (Moizinho et al, 2014) or other cross-CG mechanisms with internationalization (Sheng & Pereira, 2014). Therefore, in order to verify this important relationship in Brazil, we elaborated the following hypothesis:…”

Section: Board Composition and Exportmentioning

confidence: 99%

Do Ownership Concentration and the Board of Directors Affect Exports?

Dias

Cunha

Peixoto

et al. 2021

RAM, Rev. Adm. Mackenzie

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Purpose: To investigate whether the shareholder concentration and the board composition influence the export of Brazilian listed firms from 2010 to 2017. Originality/value: The study contributes to the literature on exports and corporate governance by highlighting that companies with good governance practices, measured by the board composition and ownership/control structure, might increase their exports. This research can serve as a guide for companies to structure their boards in order to positively influence exports and improve performance. In addition, the study raises the question of what would be the “optimal level” of firms’ shareholding concentration in order to improve the decision-making process involved in choosing to expand borders through export. Design/methodology/approach: The study performed logistic regression (logit model) and regression with the censored dependent variable (tobit model). Propensity to export and intensity of export were used as dependent variables. The logit regressions involved a sample of 307 exporting and non-exporting companies, and the tobit regressions involved a sample of 61 exporting firms. Findings: We found a positive relationship between board independence and exports, that is, the greater presence of independent members on the board, the higher the export level of firms. We also found that there is a non-monotonic relationship between shareholder concentration and level of exports. In summary, the study suggests that some corporate governance mechanisms may act as antecedents for firms’ export practices.

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“…VCs have been argued to "open up networks and opportunities" (Espenlaub, Khurshed, & Mohamed, 2015, p. 217), especially those that are already internationalized themselves, so that new ventures can increase their resource base (Dai et al, 2012). Internationalized VCs can transform a local business into a global business (Humphery-Jenner & Suchard, 2013b) since financial network diversity, derived from firm's ownership structures (Sheng & Pereira, 2014), tends to increase the degree of internationalization of firms (Manolova, Manev, & Gyoshev, 2014). In addition, internationalization of investee firms can be important for the VC as it increases the chances of a successful exit strategy (Espenlaub et al, 2015).…”

Section: Influences Of Venture Capitalistsmentioning

confidence: 99%

Influences of Foreign and Domestic Venture Capitalists on Internationalisation of Small Firms

Carneiro

Moreira

Sheng

2022

BAR, Braz. Adm. Rev.

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This study investigates whether venture capitalists (VCs) influence the internationalization of small firms and whether such impact differs between foreign and domestic VCs. Our findings, based on in-depth interviews with top decision-makers from two VCs and four portfolio ventures, indicate contrasts between the perceptions of VCs and portfolio firms, so that the former claim to have a higher impact than what is perceived by the latter. Additionally, our evidence about the differential impacts of foreign versus domestic VCs runs counter to the literature and suggests that the purported stronger impact of foreign VCs may have been over-emphasized in the literature. Two contingencies are revealed that seem to affect the impact of the VC and of its nationality on the internationalization of investee firms: breadth of the industry (global versus local industries) and firm's vocation (born global firm versus local leader).

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Effects of Internationalization on Ownership Structure: Evidence from Latin American Firms

Cited by 5 publications

References 20 publications

Business Groups and Corporate Governance: Review, Synthesis, and Extension

Business Groups and Corporate Governance: Review, Synthesis, and Extension

Do Ownership Concentration and the Board of Directors Affect Exports?

Influences of Foreign and Domestic Venture Capitalists on Internationalisation of Small Firms

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