Stock liquidity and second blockholder as drivers of corporate value: Evidence from Latin America

Carlos Pombo and Rodrigo Taborda

No 14074, Documentos CEDE from Universidad de los Andes, Facultad de Economía, CEDE

Abstract: This paper examines the relationship between firm value and blockholders in Latin America. Econometric results for a comprehensive data set of more than 550 firms listed in the six largest stock markets of the region support a positive effect of variables measuring the existence, contestability, dispersion and identity of blockholder on performance (Tobin’s Q) only for highly liquid stocks. The identity of the second largest blockholder (family, foreign, financial or the State) emerges as critical for such effects. The study supports the voice and exit approach as a disciplinary mechanism on firm performance.

Keywords: Blockholders; firm value; corporate governance (search for similar items in EconPapers)
JEL-codes: G32 G34 (search for similar items in EconPapers)
Pages: 40
Date: 2015-11-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Stock liquidity and second blockholder as drivers of corporate value: Evidence from Latin America (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000089:014074

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