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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Autores principales:	Dante Baiardo C. Cavalcante Viana Junior, Daniel Ferreira Caixe, Vera Maria Rodrigues Ponte
Formato:	article
Lenguaje:	EN PT
Publicado:	FUCAPE Business School 2019
Materias:	concentration of control market value economic instability Business HF5001-6182
Acceso en línea:	https://doaj.org/article/17b10ea85eeb46f599dedf401da75a02
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spelling	oai:doaj.org-article:17b10ea85eeb46f599dedf401da75a022021-11-11T15:48:07ZModerating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin America1807-734X10.15728/bbr.2019.16.4.6https://doaj.org/article/17b10ea85eeb46f599dedf401da75a022019-01-01T00:00:00Zhttp://www.redalyc.org/articulo.oa?id=123062260006https://doaj.org/toc/1807-734XThis 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.Dante Baiardo C. Cavalcante Viana JuniorDaniel Ferreira CaixeVera Maria Rodrigues PonteFUCAPE Business Schoolarticleconcentration of controlmarket valueeconomic instabilityBusinessHF5001-6182ENPTBBR: Brazilian Business Review, Vol 16, Iss 4, Pp 400-415 (2019)
institution	DOAJ
collection	DOAJ
language	EN PT
topic	concentration of control market value economic instability Business HF5001-6182
spellingShingle	concentration of control market value economic instability Business HF5001-6182 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
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
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
title	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_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
publisher	FUCAPE Business School
publishDate	2019
url	https://doaj.org/article/17b10ea85eeb46f599dedf401da75a02
work_keys_str_mv	AT dantebaiardoccavalcantevianajunior moderatingeffectofeconomicinstabilityintherelationshipbetweenconcentrationofcontrolandmarketvalueempiricalevidenceinlatinamerica AT danielferreiracaixe moderatingeffectofeconomicinstabilityintherelationshipbetweenconcentrationofcontrolandmarketvalueempiricalevidenceinlatinamerica AT veramariarodriguesponte moderatingeffectofeconomicinstabilityintherelationshipbetweenconcentrationofcontrolandmarketvalueempiricalevidenceinlatinamerica
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Moderating effect of economic instability in the relationship between concentration of control and market value: empirical evidence in Latin America

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