Moderating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin America

Detalhes bibliográficos
Autor(a) principal: Viana Junior, Dante Baiardo C. Cavalcante
Data de Publicação: 2019
Outros Autores: Caixe, Daniel Ferreira, Ponte, Vera Rodrigues Maria Rodrigues
Tipo de documento: Artigo
Idioma: eng
por
Título da fonte: BBR. Brazilian Business Review (English edition. Online)
Texto Completo: http://www.bbronline.com.br/index.php/bbr/article/view/536
Resumo: 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.
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spelling Moderating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin AmericaEfeito moderador da instabilidade econômica na relação entre concentração de controle e valor de mercado: evidências empíricas na América LatinaConcentration of ControlMarket ValueEconomic InstabilityConcentração de ControleValor de MercadoInstabilidade Econômica 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. Este artigo investiga o efeito moderador da instabilidade econo?mica na relac?a?o entre a concentrac?a?o de controle e o valor de mercado da empresa. Com tal objetivo, constro?i-se um painel na?o balanceado composto por 341 companhias latino-americanas de seis pai?ses: Argentina, Brasil, Chile, Colo?mbia, Me?xico e Peru. Os resultados dos modelos dina?micos, estimados pelo me?todo dos momentos generalizado siste?mico, apontam, no geral, que a concentrac?a?o de controle reduz o valor de mercado das firmas somente em ambientes de elevada instabilidade econo?mica. Assim, este estudo fornece evide?ncias empi?ricas de que momentos de instabilidade econo?mica incentivam os acionistas controladores a agirem ainda mais fortemente de acordo com os pro?prios interesses, o que pode resultar na expropriac?a?o da riqueza de menores acionistas. FUCAPE Business Shool2019-07-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPeer-reviewed ArticleArtigo revisado pelos paresapplication/pdfapplication/pdfhttp://www.bbronline.com.br/index.php/bbr/article/view/53610.15728/bbr.2019.16.4.6Brazilian Business Review; Vol. 16 No. 4 (2019): July to August 2019; 400-415Brazilian Business Review; v. 16 n. 4 (2019): Julho a Agosto de 2019; 400-4151808-23861807-734Xreponame:BBR. Brazilian Business Review (English edition. Online)instname:Fucape Business School (FBS)instacron:FBSengporhttp://www.bbronline.com.br/index.php/bbr/article/view/536/816http://www.bbronline.com.br/index.php/bbr/article/view/536/817Copyright (c) 2019 Brazilian Business Reviewhttps://creativecommons.org/licenses/by/4.0info:eu-repo/semantics/openAccessViana Junior, Dante Baiardo C. CavalcanteCaixe, Daniel FerreiraPonte, Vera Rodrigues Maria Rodrigues2019-07-01T09:58:20Zoai:ojs.pkp.sfu.ca:article/536Revistahttps://www.bbronline.com.br/index.php/bbr/indexONGhttp://www.bbronline.com.br/index.php/bbr/oai|| bbronline@bbronline.com.br1808-23861808-2386opendoar:2019-07-01T09:58:20BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS)false
dc.title.none.fl_str_mv Moderating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin America
Efeito moderador da instabilidade econômica na relação entre concentração de controle e valor de mercado: evidências empíricas na América Latina
title Moderating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin America
spellingShingle Moderating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin America
Viana Junior, Dante Baiardo C. Cavalcante
Concentration of Control
Market Value
Economic Instability
Concentração de Controle
Valor de Mercado
Instabilidade Econômica
title_short 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_sort Moderating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin America
author Viana Junior, Dante Baiardo C. Cavalcante
author_facet Viana Junior, Dante Baiardo C. Cavalcante
Caixe, Daniel Ferreira
Ponte, Vera Rodrigues Maria Rodrigues
author_role author
author2 Caixe, Daniel Ferreira
Ponte, Vera Rodrigues Maria Rodrigues
author2_role author
author
dc.contributor.author.fl_str_mv Viana Junior, Dante Baiardo C. Cavalcante
Caixe, Daniel Ferreira
Ponte, Vera Rodrigues Maria Rodrigues
dc.subject.por.fl_str_mv Concentration of Control
Market Value
Economic Instability
Concentração de Controle
Valor de Mercado
Instabilidade Econômica
topic Concentration of Control
Market Value
Economic Instability
Concentração de Controle
Valor de Mercado
Instabilidade Econômica
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.
publishDate 2019
dc.date.none.fl_str_mv 2019-07-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
Artigo revisado pelos pares
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://www.bbronline.com.br/index.php/bbr/article/view/536
10.15728/bbr.2019.16.4.6
url http://www.bbronline.com.br/index.php/bbr/article/view/536
identifier_str_mv 10.15728/bbr.2019.16.4.6
dc.language.iso.fl_str_mv eng
por
language eng
por
dc.relation.none.fl_str_mv http://www.bbronline.com.br/index.php/bbr/article/view/536/816
http://www.bbronline.com.br/index.php/bbr/article/view/536/817
dc.rights.driver.fl_str_mv Copyright (c) 2019 Brazilian Business Review
https://creativecommons.org/licenses/by/4.0
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Copyright (c) 2019 Brazilian Business Review
https://creativecommons.org/licenses/by/4.0
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv FUCAPE Business Shool
publisher.none.fl_str_mv FUCAPE Business Shool
dc.source.none.fl_str_mv Brazilian Business Review; Vol. 16 No. 4 (2019): July to August 2019; 400-415
Brazilian Business Review; v. 16 n. 4 (2019): Julho a Agosto de 2019; 400-415
1808-2386
1807-734X
reponame:BBR. Brazilian Business Review (English edition. Online)
instname:Fucape Business School (FBS)
instacron:FBS
instname_str Fucape Business School (FBS)
instacron_str FBS
institution FBS
reponame_str BBR. Brazilian Business Review (English edition. Online)
collection BBR. Brazilian Business Review (English edition. Online)
repository.name.fl_str_mv BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS)
repository.mail.fl_str_mv || bbronline@bbronline.com.br
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