Moderating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin America
This paper investigates the moderating effect of economic instability in the relationship between the concentration of control and market value of firms. For this purpose, we built an unbalanced panel dataset composed of 341 Latin American companies from six countries: Argentina, Brazil, Chile, Co...
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| Format: | Article |
| Language: | English |
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FUCAPE Business School
2019-01-01
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| Series: | BBR: Brazilian Business Review |
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| Online Access: | http://www.redalyc.org/articulo.oa?id=123062260006 |
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| _version_ | 1825207319569367040 |
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| author | Dante Baiardo C. Cavalcante Viana Junior Daniel Ferreira Caixe Vera Maria Rodrigues Ponte |
| author_facet | Dante Baiardo C. Cavalcante Viana Junior Daniel Ferreira Caixe Vera Maria Rodrigues Ponte |
| author_sort | Dante Baiardo C. Cavalcante Viana Junior |
| collection | DOAJ |
| description | This paper investigates the moderating effect of economic instability in the relationship between the concentration of control and market value of firms. For this purpose, we built an unbalanced panel dataset composed of 341 Latin American companies from six countries: Argentina, Brazil, Chile, Colombia, Mexico, and Peru. The results of the dynamic models, estimated using the systemic generalized method of moments, indicate, in general, that concentration of control only reduces the market value of firms in environments with high economic instability. Thus, this study provides empirical evidence that times of economic instability encourage controlling shareholders to act even more strongly in their own interests, which may result in the expropriation of the wealth of smaller shareholders. |
| format | Article |
| id | doaj-art-17b10ea85eeb46f599dedf401da75a02 |
| institution | Kabale University |
| issn | 1807-734X |
| language | English |
| publishDate | 2019-01-01 |
| publisher | FUCAPE Business School |
| record_format | Article |
| series | BBR: Brazilian Business Review |
| spelling | doaj-art-17b10ea85eeb46f599dedf401da75a022025-02-06T23:39:32ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2019-01-0116440041510.15728/bbr.2019.16.4.6Moderating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin AmericaDante Baiardo C. Cavalcante Viana JuniorDaniel Ferreira CaixeVera Maria Rodrigues PonteThis paper investigates the moderating effect of economic instability in the relationship between the concentration of control and market value of firms. For this purpose, we built an unbalanced panel dataset composed of 341 Latin American companies from six countries: Argentina, Brazil, Chile, Colombia, Mexico, and Peru. The results of the dynamic models, estimated using the systemic generalized method of moments, indicate, in general, that concentration of control only reduces the market value of firms in environments with high economic instability. Thus, this study provides empirical evidence that times of economic instability encourage controlling shareholders to act even more strongly in their own interests, which may result in the expropriation of the wealth of smaller shareholders.http://www.redalyc.org/articulo.oa?id=123062260006concentration of controlmarket valueeconomic instability |
| spellingShingle | Dante Baiardo C. Cavalcante Viana Junior Daniel Ferreira Caixe Vera Maria Rodrigues Ponte Moderating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin America BBR: Brazilian Business Review concentration of control market value economic instability |
| title | Moderating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin America |
| title_full | Moderating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin America |
| title_fullStr | Moderating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin America |
| title_full_unstemmed | Moderating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin America |
| title_short | Moderating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin America |
| title_sort | moderating effect of economic instability in the relationship between concentration of control and market value empirical evidence in latin america |
| topic | concentration of control market value economic instability |
| url | http://www.redalyc.org/articulo.oa?id=123062260006 |
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