Institutional investors heterogeneity and firm valuation: evidence from Latin America
This article analyses how the corporate valuation of Latin American firms is affected by the presence of a blockholder institutional investor. The study uses a data set of 562 firms from six Latin American countries for the 1997¿2011 period. We found that the presence of an institutional investor ha...
| Autores: | , |
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| Tipo de recurso: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2015 |
| País: | Colombia |
| Institución: | Universidad de los Andes |
| Repositorio: | Séneca: repositorio Uniandes |
| Idioma: | inglés |
| OAI Identifier: | oai:repositorio.uniandes.edu.co:1992/46939 |
| Acceso en línea: | http://hdl.handle.net/1992/46939 https://www.sciencedirect.com/science/article/pii/S1566014115000679 |
| Access Level: | acceso abierto |
| Palabra clave: | Institutional investors Firm valuation Latin America |
| Sumario: | This article analyses how the corporate valuation of Latin American firms is affected by the presence of a blockholder institutional investor. The study uses a data set of 562 firms from six Latin American countries for the 1997¿2011 period. We found that the presence of an institutional investor has a positive effect of 8% on firm value, which increases to 21% for the cases where there is blockholder coalition with an institutional investor. After dividing the sample by investor type, we found that independent institutional ownership implies a positive premium on firms' Tobin's Q, while the presence of a grey investor has a negative effect on firm valuation. |
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