PUBLICACIONES

Group Affiliation and Ownership Concentration as Determinants of Capital Structure Decisions: Contextualizing the Facts for an Emerging Economy

ISI: Group Affiliation and Ownership Concentration as Determinants of Capital Structure Decisions: Contextualizing the Facts for an Emerging Economy

PABLO SAN MARTIN M., MAURICIO JARA B., PAOLO SAONA H.

2018 - Emerging Markets Finance and Trade - Volume 54, 2018 - Issue 14. Pp 3312 - 3329

Abstract

This study considers the firm’s affiliation with business groups and theo wnership structure as determinants of leverage decisions in Chilean firms. The major findings show that group-affiliated firms take advantage of internal capital markets and transactions with related parties (e.g. low transference price or loans at competitive interest rates) which reduces the demand for external debt. Majority shareholders in affiliated firms behave as controllers of managers, on the one hand, and avoid the supervisory role of debt, on the other hand. In stand-alone firms, supervision led by majority shareholders is complemented by the monitoring role of debt through higher levels of leverage. We conclude that further developments in capital structure theories adjusted to the particularities of the different institutional contexts are needed. 

Keywords

Capital structure, business groups, ownership concentration, panel data, Chilean firms.

¿Quieres seguir leyendo? [Accede a la publicación completa]

¿Cómo los hombres podemos ser aliados en la prevención de la violencia de género?

El martes 26 de mayo, el Observatorio de Gestión de Personas de la Facultad de Economía y negocios de la Universidad de Chile, junto al centro de Desarrollo Gerencial (Unegocios), rea...

¿Se han agotado los Recursos Naturales de Chile?

El 18 de mayo de 2020 Chile se convirtió en el primer país latinoamericano con sobregiro ecológico, es decir, hemos agotado como país los recursos naturales que tenemos ...

Todos los Derechos © 2014 | Departamento de Administración - Facultad de Economía y Negocios - Universidad de Chile - Diagonal Paraguay 257, torre 26, oficina 1101, piso 11, Santiago, Chile.