Effects of Internationalization on Ownership Structure: Evidence from Latin American Firms
We analyze the direct and simultaneous effects of internationalization on the ownership structure of Latin American companies based on agency theory. Using a sample of 425 Latin American firms between 2007 and 2011, which corresponds to 1,776 observations, we use random effects and three-stage l...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)
2014-07-01
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| Series: | BAR: Brazilian Administration Review |
| Subjects: | |
| Online Access: | http://www.anpad.org.br/periodicos/arq_pdf/a_1478.pdf |
| _version_ | 1828077279856558080 |
|---|---|
| author | Hsia Hua Sheng Vinícius Silva Pereira |
| author_facet | Hsia Hua Sheng Vinícius Silva Pereira |
| author_sort | Hsia Hua Sheng |
| collection | DOAJ |
| description | We analyze the direct and simultaneous effects of internationalization on the ownership structure of Latin
American companies based on agency theory. Using a sample of 425 Latin American firms between 2007 and
2011, which corresponds to 1,776 observations, we use random effects and three-stage least squares panel data
regression to test these effects. We find that the hypothesized positive effect of internationalization on ownership
concentration is rejected. Our results support the negative relationship that is predicted by principal-agent theory
when analyzing the effect of ownership on the degree of internationalization. Greater internationalization via the
equity entry mode is associated with lower levels of ownership concentration. Finally, there is simultaneity in the
determination of the relationship between the degree of internationalization and ownership concentration. |
| first_indexed | 2024-04-11T02:27:04Z |
| format | Article |
| id | doaj.art-8b2a10a132794daa9f67becc5794cb7f |
| institution | Directory Open Access Journal |
| issn | 1807-7692 1807-7692 |
| language | English |
| last_indexed | 2024-04-11T02:27:04Z |
| publishDate | 2014-07-01 |
| publisher | Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD) |
| record_format | Article |
| series | BAR: Brazilian Administration Review |
| spelling | doaj.art-8b2a10a132794daa9f67becc5794cb7f2023-01-02T22:28:09ZengAssociação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)BAR: Brazilian Administration Review1807-76921807-76922014-07-01113323339http://dx.doi.org/10.1590/1807-7692bar2014353Effects of Internationalization on Ownership Structure: Evidence from Latin American FirmsHsia Hua Sheng0Vinícius Silva Pereira1Fundação Getúlio Vargas - EAESP/FGV. Fundação Getúlio Vargas, Rua Itapeva, 474, 01332-000, São Paulo, SP, Brazil. Universidade Federal de Uberlândia – FAGEN/UFU. FAGEN/UFU, Av. João Naves de Ávila, 2121, 38408-100, Minas Gerais, MG, Brazil. We analyze the direct and simultaneous effects of internationalization on the ownership structure of Latin American companies based on agency theory. Using a sample of 425 Latin American firms between 2007 and 2011, which corresponds to 1,776 observations, we use random effects and three-stage least squares panel data regression to test these effects. We find that the hypothesized positive effect of internationalization on ownership concentration is rejected. Our results support the negative relationship that is predicted by principal-agent theory when analyzing the effect of ownership on the degree of internationalization. Greater internationalization via the equity entry mode is associated with lower levels of ownership concentration. Finally, there is simultaneity in the determination of the relationship between the degree of internationalization and ownership concentration.http://www.anpad.org.br/periodicos/arq_pdf/a_1478.pdfinternationalization; entry modes; ownership structure; ownership concentration; property identity. |
| spellingShingle | Hsia Hua Sheng Vinícius Silva Pereira Effects of Internationalization on Ownership Structure: Evidence from Latin American Firms BAR: Brazilian Administration Review internationalization; entry modes; ownership structure; ownership concentration; property identity. |
| title | Effects of Internationalization on Ownership Structure: Evidence from Latin American Firms |
| title_full | Effects of Internationalization on Ownership Structure: Evidence from Latin American Firms |
| title_fullStr | Effects of Internationalization on Ownership Structure: Evidence from Latin American Firms |
| title_full_unstemmed | Effects of Internationalization on Ownership Structure: Evidence from Latin American Firms |
| title_short | Effects of Internationalization on Ownership Structure: Evidence from Latin American Firms |
| title_sort | effects of internationalization on ownership structure evidence from latin american firms |
| topic | internationalization; entry modes; ownership structure; ownership concentration; property identity. |
| url | http://www.anpad.org.br/periodicos/arq_pdf/a_1478.pdf |
| work_keys_str_mv | AT hsiahuasheng effectsofinternationalizationonownershipstructureevidencefromlatinamericanfirms AT viniciussilvapereira effectsofinternationalizationonownershipstructureevidencefromlatinamericanfirms |