The influence of Family and Pyramidal Ownership on Corporate Diversification in Chile

2018. North American Journal of Economics and Finance. Vol. 43, pp. 158-168

Carlos Maquieira V, Christian Espinoza M, Mauricio Jara B

Abstract:

In this paper we analyse the moderating effects of family nature and pyramidal ownership on the relationship between corporate diversification and performance in Chilean companies. Using a sample of 104 companies listed on the Santiago Stock Exchange between 2005 and 2016, we report a diversification discount. Second, we find that when firms are owned by a family, the relationship between performance and diversification is positive. However, when family ownership is pyramidal, the relationship between performance and diversification becomes negative.

Palabras claves: Family firmsPyramidal ownershipCorporate diversificationFirm value

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