Diversification and control in emerging marketsthe case of chilean firms

  1. Jara Bertín, Mauricio A.
  2. López Iturriaga, Félix Javier
  3. Espinosa Méndez, Christian
Revista:
Business Research Quarterly

ISSN: 2340-9444,  2340-9436

Año de publicación: 2015

Volumen: 18

Número: 4

Páginas: 259-274

Tipo: Artículo

DOI: 10.1016/J.BRQ.2015.01.002 DIALNET GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: Business Research Quarterly

Resumen

Analizamos el efecto de dos tipos de diversificación corporativa (diversificación de negocios y diversificación de propiedad) sobre el valor de mercado de las empresas chilenas. Para una muestra de 83 empresas no financieras que cotizan en la Bolsa de Valores de Santiago de 2005 a 2013, encontramos un descuento tanto para la diversificación de negocios como de propiedad, que es consistente con lo reportado para otros escenarios económicos o institucionales. En segundo lugar, encontramos que el descuento por diversificación de negocios está relacionado con la estructura de propiedad y se debe al exceso de los derechos de control de los mayores accionistas. En tercer lugar, encontramos que el descuento por diversificación de la propiedad se convierte en una prima cuando la diversificación de la propiedad permite el control de las empresas afiliadas.

Referencias bibliográficas

  • Adam T., Goyal V.K. The investment opportunity set and its proxy variables. J. Financ. Res. 2008, 31(1):41-63.
  • Aggarwal R.K., Samwick A.A. Why do managers diversify their firms? Agency reconsidered. J. Finance 2003, 58(1):71-118.
  • Aivazian V.A., Qiu J., Rahaman M.M. Bank Loan Contracting and Corporate Diversification: Does Organizational Structure Matter to Lenders? SSRN Working Paper 2011, http://ssrn.com/abstract=1623427.
  • Almeida H., Wolfenzon D. A theory of pyramidal ownership and family business groups. J. Finance 2006, 61(6):2637-2680.
  • Baker G.P. Beatrice: a study in the creation and destruction of value. J. Finance 1992, 47(3):1081-1119.
  • Becerra M. Theory of the Firm for Strategic Management: Economic Value Analysis 2009, Cambridge University Press, United Kingdom.
  • Berger P.G., Ofek E. Diversification's effect on firm value. J. Financ. Econ. 1995, 37(1):39-65.
  • Berry C. Corporate growth and diversification. J. Law Econ. 1971, 14(2):371-383.
  • Buchuk, Larrain B., Muñoz F., Urzúa F. The internal capital markets of business groups: evidence from intra-group loans. J. Financ. Econ. 2014, 112(2).
  • Campa J.M., Kedia S. Explaining the diversification discount. J. Finance 2002, 57(4):1731-1762.
  • Claessens S., Djankov S., Joseph P.H.F., Lang L.H.P. Corporate Diversification in East Asia: The Role of Ultimate Ownership and Group Affiliation 1999, The World Bank.
  • Claessens S., Djankov S., Lang L.H.P. The separation of ownership and control in East Asian Corporations. J. Financ. Econ. 2000, 58(1/2):81-112.
  • Chakrabarti A., Singh K., Mahmood I. Diversification and performance: evidence from East Asian firms. Strateg. Manage. J. 2007, 28(2):101-120.
  • Chen C.-J., Yu C.-M.J. Managerial ownership, diversification, and firm performance: evidence from an emerging market. Int. Bus. Rev. 2012, 21(3):518-534.
  • Chen S.-S., Ho K.W. Corporate diversification, ownership structure, and firm value: the Singapore evidence. Int. Rev. Financ. Anal. 2000, 9(3):315-326.
  • Chen S., Kim W. Corporate diversification, ownership structure, and firm value: the Singapore evidence. Int. Rev. Financ. Anal. 2000, 9:315-326.
  • Cheung Y.-L., Rau P.R., Stouraitis A. Tunneling, propping, and expropriation: evidence from connected party transactions in Hong Kong. J. Financ. Econ. 2006, 82(2):343-386.
  • Chung H.-M. The role of family management and family ownership in diversification: the case of family business groups. Asia Pac. J. Manag. 2013, 30(3):871-891.
  • Chung H.K. Business groups in Japan and Korea: theoretical boundaries and future direction. Int. J. Polit. Econ. 2004, 34:67-98.
  • Dastidar P. International corporate diversification and performance: does firm selfselection matter?. J. Int. Bus. Stud. 2009, 40:71-85.
  • David P., O'Brien J.P., Yoshikawa T., Delios A. Do shareholders or stakeholders appropriate the rents from corporate diversification? The influence of ownership structure. Acad. Manag. J. 2010, 53(3):636-654.
  • Delios A., Wu Z. Legal person ownership, diversification strategy and firm profitability in China. J. Manag. Gov. 2005, 9(2):151-169.
  • Demirgüc-Kunt A., Maksimovic V. Funding growth in bank-based and market-based financial systems: evidence from firm-level data. J. Financ. Econ. 2002, 65(3):337-363.
  • Espinosa C. Estructura de propiedad y desempeño de la firma: el caso chileno. Acad. Rev. Latinoam. Adm. 2009, 43:41-62.
  • Faccio M., Lang L.H.P. The ultimate ownership of Western European corporations. J. Financ. Econ. 2002, 65(3):365-395.
  • Farías P. Business group characteristics and firm operating performance: evidence from Chile. Acad. Rev. Latinoam. Adm. 2014, 27(2):226-235.
  • Fernández A., González F., Suárez N. How institutions and regulation shape the influence of bank concentration on economic growth: international evidence. Int. Rev. Law Econ. 2010, 30:28-36.
  • Fernández V. Monetary policy and the banking sector in Chile. Emerg. Markets Finance Trade 2005, 41(3):5-36.
  • Fluck Z., Lynch A. Why do firm merge and then divest? A theory of financial synergies. J. Bus. 1999, 72:319-346.
  • Friedman E., Johnson S., Mitton T. Propping and tunneling. J. Comp. Econ. 2003, 31(4):732-750.
  • Garrido E., Gomez J., Maicas J.P., Orcos R. The institution-based view of strategy: how to measure it. Bus. Res. Q. 2014, 17(2):82-101.
  • Gomes J., Livdan D. Optimal diversification: reconciling theory and evidence. J. Finance 2004, 59(2):507-535.
  • Hachette D. Privatizaciones: Reforma estructural pero inconclusa. La Transformación Económica de Chile 2000, Santiago.
  • Hann R.N., Ogneva M., Ozbas O. Corporate diversification and the cost of capital. J. Finance 2013, 68(5):1961-1999.
  • Heckman J. Sample selection bias as a specification error. Econometrica 1979, 47(1):153-161.
  • Hoechle D., Schmid M., Walter I., Yermack D. How much of the diversification discount can be explained by poor corporate governance?. J. Financ. Econ. 2012, 103:41-60.
  • Humphery-Jenner M. Diversification as a source of value creation: evidence from private equity. Cap. Budg. Invest. Policy eJ. 2010, 2(95).
  • Huyghebaert N., Wang L. Expropriation of minority investors in Chinese listed firms: the role of internal and external corporate governance mechanisms. Corp. Gov. 2012, 20(3):308-332.
  • Hyland D., Diltz D.J. Why firms diversify: an empirical examination. Financ. Manag. 2002, 31(1):51-81.
  • Iglesias A. Pension reform and corporate governance: impact in Chile. Rev. ABANTE 2000, 3(1):109-141.
  • Jensen M.C. Agency costs of free cash flow, corporate finance, and takeovers. Am. Econ. Rev. 1986, 76(2):323-329.
  • Jiraporn P., Sang-Kim Y., Davidson W.N. Multiple directorships and corporate diversification. J. Empir. Finance 2008, 15:418-435.
  • Khanna T., Palepu K. Is group affiliation profitable in emerging markets? An analysis of diversified Indian business groups. J. Finance 2000, 55(2):867-891.
  • Klein P.G., Lein L.B. Diversification, industry structure, and firm strategy: an organizational economics perspective. Adv. Strateg. Manag. 2009, 26:289-312.
  • Klein P.G., Saidenberg M.R. Organizational structure and the diversification discount: evidence from commercial banking. J. Ind. Econ. 2010, 58(1):127-155.
  • Kock C.J., Guillén M.F. Strategy and structure in developing countries: business groups as an evolutionary response to opportunities for unrelated diversification. Ind. Corp. Change 2001, 10(1):77-113.
  • Kuppuswamy V., Villalonga B. Does Diversification Create Value in the Presence of External Financing Constraints? Evidence from the 2008-2009 Financial Crisis. Working Papers 2010, Harvard Business School.
  • La Porta R., Lopez-de-Silanes F., Shleifer A. Corporate ownership around the world. J. Finance 1999, 54(2):471-517.
  • La Porta R., Lopez-de-Silanes F., Shleifer A., Vishny R.W. Law and finance. J. Polit. Econ. 1998, 106(6):1113-1155.
  • Laeven L., Levine R. Is there a diversification discount in financial conglomerates?. J. Financ. Econ. 2007, 85(2):331-367.
  • Laeven L., Levine R. Complex ownership structures and corporate valuations. Rev. Financ. Stud. 2008, 21(2):579-604.
  • Lamont O.A., Polk C. Does diversification destroy value? Evidence from the industry shocks. J. Financ. Econ. 2002, 63(1):51-77.
  • Lang L.H.P., Stulz R.M. Tobin's q, corporate diversification, and firm performance. J. Polit. Econ. 1994, 102(6):1248-1280.
  • Larraín F., Vergara R. Un Cuarto de Siglo de Reformas Fiscales. La Transformación Económica de Chile 2000, Santiago.
  • Lefort F., González R. Hacia un mejor gobierno corporativo en Chile. Rev. ABANTE 2008, 11(1):17-37.
  • Lefort F., Urzúa F. Board independence, firm performance and ownership concentration: evidence from Chile. J. Bus. Res. 2008, 61(6):615-622.
  • Lefort F., Walker E. The effect of economic and political shocks on corporate governance system in Chile. Rev. ABANTE 2000, 2(2):183-206.
  • Lefort F., Walker E. Ownership and capital structure of Chilean conglomerates: facts and hypotheses of governance. Rev. ABANTE 2000, 3(1):3-27.
  • Lefort F., Walker E. Do markets penalize agency conflicts between controlling and minority shareholders? Evidence from Chile. Dev. Econ. 2007, 45(3):283-314.
  • Lensink R., van-der-Molen R. Does group affiliation increase firm value for diversified groups?. J. Empir. Finance 2010, 17(3):332-344.
  • Lins K.V. Equity ownership and firm value in emerging markets. J. Financ. Quant. Anal. 2003, 38(1):159-184.
  • Lins K.V., Servaes H. International evidence on the value of corporate diversification. J. Finance 1999, 54(6):2215-2239.
  • Lins K.V., Servaes H. Is corporate diversification beneficial in emerging markets?. Financ. Manag. 2002, 31(2):5-31.
  • Lodh S., Nandy M., Chen J. Innovation and family ownership: empirical evidence from India. Corp. Gov. 2014, 22(1):4-23.
  • Majluf N., Silva F., Paredes R. Family ties, interlocking directors and performances of business groups in emerging countries: the case of Chile. J. Bus. Res. 2006, 59(3):315-321.
  • Majluf N.S., Abarca N., Rodríguez D., Fuentes L.A. Governance and ownership structure in Chilean economic groups. ABANTE 1998, 1(1):111-139.
  • Matsusaka J.G. Corporate diversification, value maximization, and organizational capabilities. J. Bus. 2001, 74:409-531.
  • Miller D.J. Technological diversity, related diversification, and firm performance. Strateg. Manag. J. 2006, 27:604-619.
  • Morck R., Shleifer A., Vishny R.W. Do managerial objectives drive bad acquisitions?. J. Finance 1990, 45(1):31-48.
  • Ozbas O., Scharfstein D.S. Evidence on the dark side of internal capital markets. Rev. Financ. Stud. 2010, 23(2):581-599.
  • Purkayastha S., Manolova T.S., Edelman L.F. Diversification and performance in developed and emerging market contexts: a review of the literature. Int. J. Manag. Rev. 2012, 14(1):18-38.
  • Rajan R.G., Servaes H., Zingales L. The cost of diversity: the diversification discount and inefficient investment. J. Finance 2000, 55(1):35-80.
  • Riyanto Y.E., Toolsema L.A. Tunneling and propping: a justification for pyramidal ownership. J. Bank. Finance 2008, 32(10):2178-2187.
  • Ruiz-Mallorquí M.V., Santana-Martín D.J. Ultimate institutional owner and takeover defenses in the controlling versus minority shareholders context. Corp. Gov. 2009, 17(2):238-254.
  • Ruiz-Mallorquí M.V., Santana-Martín D.J. Dominant institutional owners and firm value. J. Bank. Finance 2011, 35(1):118-129.
  • Santalo J., Becerra M. Competition from specialized firms and the diversification-performance linkage. J. Finance 2008, 68(2):851-883.
  • Santana D.J., Aguiar I. El último propietario de las empresas cotizadas españolas (1996-2002). Cuad. Econ. Dir. Empres. 2006, 26:47-72.
  • Servaes H. The value of diversification during the conglomerate merger wave. J. Finance 1996, 51(4):1201-1225.
  • Shleifer A., Vishny R.W. Liquidation values and debt capacity: a market equilibrium approach. J. Finance 1992, 47(4):1343-1366.
  • Silva F., Majluf N. Does family ownership shape performance outcomes?. J. Bus. Res. 2008, 61(6):609-614.
  • Tong Z. Firm diversification and the value of corporate cash holdings. J. Corp. Finance 2011, 17:741-758.
  • Villalonga B. Diversification discount or premium? Evidence from the business information tracking series. J. Finance 2004, 59(2):479-506.
  • Whited T.M. Is it inefficient investment that causes the diversification discount?. J. Finance 2001, 56:1667-1692.
  • Yao Y., Xu L., Liu Z. Taking away the voting powers from controlling shareholders: evidence from the Chinese securities market. J. Int. Financ. Manag. Acc. 2010, 21(3):187-220.
  • Yigit I., Behram N.K. The relationship between diversification strategy and organizational performance in developed and emerging economy contexts: evidence from Turkey and Netherlands. Eurasian Bus. Rev. 2013, 3(2):121-136.
Fuente de los datos: Dialnet