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Author Chong, Alberto
Title Investor Protection and Corporate Governance : Firm-level Evidence Across Latin America
Imprint Herndon : World Bank Publications, 2007
book jacket
Descript 1 online resource (615 pages)
text txt rdacontent
computer c rdamedia
online resource cr rdacarrier
Series Latin American Development Forum
Latin American Development Forum
Note Cover -- Title Page -- Contents -- Latin American Development Forum Series -- About the Contributors -- Foreword -- Acknowledgments -- Acronyms and Abbreviations -- Overview: Corporate Governance in Latin America -- Introduction -- Investor Protection and Its Evolution -- Shareholder Rights in the 1990s -- The Evolution of Shareholder Protection to 2005 -- Access to External Finance -- The Size and Breadth of Capital Markets -- Ownership Concentration -- Insider Trading -- Firm-Level Corporate Governance -- Firm-level Samples and Corporate Governance Indicators -- Firm-level Corporate Governance Practices and their Impact -- Firm Migration and Disappearing Stock Markets -- Conclusions and Policy Implications -- Annex 1 Variable Definitions -- Annex 2 Variable Definitions -- Notes -- References -- 1 Insider Trading and Corporate Governance in Latin America -- Introduction -- Testable Hypotheses -- Estimation of Informed Trading Probability -- Methodological Review -- Does Informed Trading Probability Really Measure what we want to Measure? -- Data Sources and Sample Construction -- Stock Data -- Country Data -- Corporate Announcements Data -- Firm-Specific Variables -- Results -- Distribution of Informed Trading Probability -- Cross-Sectional Determinants of Informed Trading -- Informed trading and corporate governance measures used in the literature -- Event Study: The ITP Around Corporate Announcements -- The Market Value of Informed Trading -- Conclusions, Policy Implications, and Directions for Future Research -- Annex 1.1 Additional Figures and Tables -- Notes -- References -- 2 Corporate Governance, Ownership, and Dividend Policies in Argentina -- Introduction -- Literature Review and Working Hypotheses -- Corporate Governance, Ownership, and Performance -- Corporate Governance, Ownership, and Dividend Policies
Corporate Governance and the Ownership Structure in Argentina -- Determinants of Corporate Performance -- Baseline Results -- Robustness Checks -- Endogeneity Checks -- Ownership and Performance -- Determinants of Dividend Policies -- Summary Statistics and Additional Regressors -- Econometric Results -- Conclusions -- Notes -- References -- 3 Corporate Governance and Value in Brazil (and in Chile) -- Introduction -- A Brief Review of the Literature and Working Hypotheses -- A Governance Practices Index for Brazil -- Data Sources -- Index Components -- Disclosure Questions -- Board Composition and Operation -- Ethics and Conflicts of Interest -- Shareholder rights -- Empirical Results -- Ownership Measures -- Value, the CGI, and Control Variables -- Multivariate Regression Analysis -- Market valuation -- Dividend payout -- Individual question analysis -- Extensions and Additional Robustness Checks -- Alternative Implementations of the Multivariate Model -- Endogeneity Checks -- Discussion of Potential Biases -- Comparative Analysis with Chile -- Conclusion and Policy Implications -- Annex 3.1 Variable Definitions -- Notes -- References -- 4 Corporate Governance, Market Valuation, and Payout Policy in Chile -- Introduction -- Capital Markets and the Institutional Environment: An Overview -- Conceptual Framework and Working Hypotheses -- Conglomerates, Corporate Governance, and Company Valuation -- Corporate Governance and Payout Policy -- Data Sources and Corporate Governance Measures -- Data Sources -- Ownership and Control Structures of Listed Chilean Firms -- Dividend Policies and Payout Ratios in Chile -- Agency Problems -- Corporate Governance Practices -- The Effects of Agency Problems on the Market Valuation of Firms -- Econometric Concerns -- Endogeneity -- Panel Data Estimation -- Censored Data
Empirical Results on Agency Problems and Firm Valuation -- Robustness Checks -- Endogeneity -- Dividend Payout Ratios -- Do Governance Practices Affect Market Valuation and Payout Policy? -- Correlations with the Market Valuation of Firms -- Controlling for Endogeneity -- Conclusions -- Notes -- References -- 5 Corporate Governance and Firm Valuation in Colombia -- Introduction -- Data and Methodology -- Definitions of Ownership and Control -- Valuation and Performance Measures -- Corporate Ownership and Control -- Ownership Statistics -- The Separation between Ownership and Control -- Corporate Best Practices -- The CGI -- The Company Sample -- Survey Results -- Ownership, Control, and Firm Valuation -- Working Hypotheses -- Variable Statistics -- Econometric Results -- Final Remarks and Policy Implications -- Annex 5.1 Ownership Data Structure -- Annex 5.2 Variable Definitions -- Notes -- References -- 6 Corporate Governance and Firm Value in Mexico -- Introduction -- Capital Markets in the Last 30 Years -- The Birth of the Modern Stock Exchange and the Initial Collapse (1975-87) -- The Spurt: Stabilization and the North American Free Trade Agreement (1987-97) -- Back to the Same Place (1997-2006) -- What Explains the Poor Performance of Capital Markets? -- Shareholder Protection in 1995 -- The Letter of the Law -- The Enforcement of Laws -- The Evolution of Shareholder Protection from 1995 to 2005 -- Shareholder Rights in Corporate Law -- Securities Law in 2005 (Before the December 2005 New Law) -- Regulations on Self-Dealing Transactions in 2005 (before the December 2005 New Law) -- Pension Funds: The Consequences of Poor Investor Protection -- Ownership Concentration and Lack of Institutional Investors -- The Size and Breadth of Local Capital Markets -- Dividend Payments -- Enforcement -- Migration, Cross-Listings, and Acquisitions
So, what might firms do? -- Corporate Governance, Valuation, and Investor Returns -- The Sample -- Data on Corporate Governance Practices -- Econometric Results -- Robustness Checks -- The Impact of Various Areas of Firm-Level Governance -- Reforms for Deepening Financial Markets -- Further Legal Reform -- Market-Based Mechanisms -- Conclusions and Policy Implications -- Annex 6.1 Variable Definitions -- Annex 6.2 Variable Definitions -- Notes -- References -- 7 CEO and Director Turnover in República Bolivariana de Venezuela -- Introduction -- Institutional Characteristics -- An Overview of the Economy and Stock Market -- The Legal Framework of the Capital Market -- Corporate Governance Practices -- Data -- Summary Statistics -- Empirical Analysis on CEO and Director Turnover -- CEO and Director Turnover, a Univariate Approach -- CEO Turnover, a Logit Approach -- Director Turnovers, a Poisson Approach -- Director Turnovers, OLS Approach -- Robustness Checks -- Lagged Values of Performance Measures -- Macroeconomic Controls -- Ownership Structure -- Endogeneity Problem -- Forced Turnover -- Conclusions and Policy Recommendations -- Annex 7.1 Nonparametric Tests and Regression Analysis -- Notes -- References -- Index -- Back Cover
Investor Protection and Corporate Governance analyzes the impact of corporate governance on firm performance and valuation. Using unique datasets gathered at the firm-level - the first such data in the region - and results from a homogeneous corporate governance questionnaire, the book examines corporate governance characteristics, ownership structures, dividend policies, and performance measures. The book's analysis reveals the very high levels of ownership and voting rights concentrations and monolithic governance structures in the largest samples of Latin American companies up to now, and new data emphasize the importance of specific characteristics of the investor protection regimes in several Latin American countries. By and large, those firms with better governance measures across several dimensions are granted higher valuations and thus lower cost of capital
Description based on publisher supplied metadata and other sources
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2020. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries
Link Print version: Chong, Alberto Investor Protection and Corporate Governance : Firm-level Evidence Across Latin America Herndon : World Bank Publications,c2007 9780821369135
Subject Corporate governance.;Investments
Electronic books
Alt Author Lopez-de-Silanes, Florencio
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