Capital structure and performance in Latin American companies
The purpose of this study is to explain the financial performance of companies in Latin America through the lens of capital structure and ownership structure. We perform a quantitative analysis of companies in Brazil, Chile, Mexico, and Peru using a panel data method. To avoid endogeneity problems,...
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2020-01-01
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Online Access: | http://dx.doi.org/10.1080/1331677X.2019.1697720 |
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doaj-f68a054aee454726a26f908c49ecd5092021-04-06T13:27:29ZengTaylor & Francis GroupEkonomska Istraživanja1331-677X1848-96642020-01-013312171218810.1080/1331677X.2019.16977201697720Capital structure and performance in Latin American companiesJuan Gallegos Mardones0Gonzalo Ruiz Cuneo1Department Audit and Information Systems, Faculty of Economics and Administrative Sciences, Universidad Católica de la Santísima ConcepciónFaculty of Engineering, Universidad de ConcepciónThe purpose of this study is to explain the financial performance of companies in Latin America through the lens of capital structure and ownership structure. We perform a quantitative analysis of companies in Brazil, Chile, Mexico, and Peru using a panel data method. To avoid endogeneity problems, instrumental variables, generalised method of moments models, and panels with random effects are employed. The data cover the period 2000 to 2015. We find a positive relationship between financial performance, growth, and size of the company. However, there are mixed results for short- and long-term financial leverage, as well as for company liquidity. With respect to the ownership structure of Chilean companies, a positive effect is observed for the first major shareholder with financial performance. In general, our results are in line with those of previous studies. However, the existence of mixed results between companies and countries makes for an interesting and novel conclusion.http://dx.doi.org/10.1080/1331677X.2019.1697720financial performancecapital structureownership structurelatin america |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Juan Gallegos Mardones Gonzalo Ruiz Cuneo |
spellingShingle |
Juan Gallegos Mardones Gonzalo Ruiz Cuneo Capital structure and performance in Latin American companies Ekonomska Istraživanja financial performance capital structure ownership structure latin america |
author_facet |
Juan Gallegos Mardones Gonzalo Ruiz Cuneo |
author_sort |
Juan Gallegos Mardones |
title |
Capital structure and performance in Latin American companies |
title_short |
Capital structure and performance in Latin American companies |
title_full |
Capital structure and performance in Latin American companies |
title_fullStr |
Capital structure and performance in Latin American companies |
title_full_unstemmed |
Capital structure and performance in Latin American companies |
title_sort |
capital structure and performance in latin american companies |
publisher |
Taylor & Francis Group |
series |
Ekonomska Istraživanja |
issn |
1331-677X 1848-9664 |
publishDate |
2020-01-01 |
description |
The purpose of this study is to explain the financial performance of companies in Latin America through the lens of capital structure and ownership structure. We perform a quantitative analysis of companies in Brazil, Chile, Mexico, and Peru using a panel data method. To avoid endogeneity problems, instrumental variables, generalised method of moments models, and panels with random effects are employed. The data cover the period 2000 to 2015. We find a positive relationship between financial performance, growth, and size of the company. However, there are mixed results for short- and long-term financial leverage, as well as for company liquidity. With respect to the ownership structure of Chilean companies, a positive effect is observed for the first major shareholder with financial performance. In general, our results are in line with those of previous studies. However, the existence of mixed results between companies and countries makes for an interesting and novel conclusion. |
topic |
financial performance capital structure ownership structure latin america |
url |
http://dx.doi.org/10.1080/1331677X.2019.1697720 |
work_keys_str_mv |
AT juangallegosmardones capitalstructureandperformanceinlatinamericancompanies AT gonzaloruizcuneo capitalstructureandperformanceinlatinamericancompanies |
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1721538282110582784 |