Finance and Governance in Developing Economies

Mørck, Randall

doi:10.3386/w16870

Cited by 9 publications

(4 citation statements)

References 150 publications

(258 reference statements)

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“…Although contestability seems to impact on the value of all firms, it is likely to be particularly relevant in family firms. Family-owned firms have been recognised as first-order importance agents to promote the growth of emerging economies (Morck, 2011; Wagner et al, 2015) and as a prevalent phenomenon in Latin America (Chong and Lopez-De-Silanes, 2007). Additionally, by their very monitoring structure and intrinsic cultural characteristics, family firms tend to have highly concentrated ownership, and even more so in developing countries (Fan et al, 2011).…”

Section: Theoretical Review and Hypothesesmentioning

confidence: 99%

Corporate governance in Latin American firms: Contestability of control and firm value

Jara

López‐Iturriaga

SanMartín

et al. 2019

BRQ Business Research Quarterly

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Using a sample of 595 firms listed in the capital markets of Argentina, Brazil, Chile, Colombia, Mexico, and Peru for the period of 2000–2015, we confirm prior literature by showing that when power distribution among several large shareholders (contestability) increases, firms’ financial performance is enhanced. More interestingly, we find that these relations are even more significant in family-owned firms, emphasising the relevance of contesting control in this kind of firm. Furthermore, contestability has a greater influence in family firms that have the most concentrated ownership. We also find that the legal framework attenuates the impact of the balance of ownership. Here, contesting control acts as an internal corporate governance mechanism that provides an alternative to the external legal setting. Taken together, our results mean that in institutional settings characterised by weak investor protection and possible conflicts of interest among shareholders, oversight by multiple large, non-related shareholders (balanced ownership concentration) becomes an important governance mechanism.

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Section: Theoretical Review and Hypothesesmentioning

confidence: 99%

Corporate governance in Latin American firms: Contestability of control and firm value

Jara

López‐Iturriaga

SanMartín

et al. 2019

BRQ Business Research Quarterly

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“…Wurgler (2001) conducted a study on the impact of corporate financing methods on operating income and believed that increasing the proportion of corporate debt and reducing the proportion of equity financing can increase economic benefits. Morck (2001) believes that the correlation between the maturity of the development of the macro financial market and the financing efficiency of enterprises has positive association. Azmat (2014) tried to measure the optimal cash level and firm value.…”

Section: Literature Reviewmentioning

confidence: 99%

Research on financing efficiency of China's strategic emerging industries based on super efficiency DEA and tobit model

Chen

Wang

2020

IJOEM

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PurposeThe purpose of this research is to explain the financing dilemma of China's strategic emerging industries and improve their financing efficiency, seize the commanding heights of economic science and technology to provide theoretical support.Design/methodology/approachThis paper selects the companies listed under strategic emerging industry during the period of 2010–2017 as the research object and used the data envelopment analysis method (DEA) to evaluate the financing efficiency of China's strategic emerging industries and selects the tobit analysis method to find out the factors affecting its financing efficiency.FindingsThe results show that the average financing efficiency of listed companies in strategic emerging industries between 2010 and 2017 is 0.7792, and the level of financing efficiency of strategic emerging industries is still at a low level. Among them, the bio-pharmaceutical industry and the energy-saving and environmental protection industry have the highest comprehensive level, and the high-end equipment manufacturing industry and the new energy industry have the lowest level of financing efficiency. Among the factors affecting the financing efficiency of strategic emerging industries, the asset-liability ratio, financial expenses and cash ratio and financing efficiency are negatively correlated, and the net asset income is positively correlated with the growth rate of the main business income.Originality/valueThis paper measures the financing efficiency of China's strategic emerging industries, then explores the influencing factors of the financing efficiency of strategic emerging industries and tries to provide important reference values for the improvement of the financing efficiency of China's strategic emerging industries at a practical level.

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“…DeFontenay and Gans (2004) and DeFontenay (2004) however observed that because every firm relies not only on its own suppliers and customers, but on their suppliers' suppliers, customers' customers, suppliers' other customers, customers' other suppliers, and so on; market power, anywhere along a multi-stranded production chain can raise a firm's costs. This network of existential externalities which Morck (2011) described as Gordian knot is absent or seriously incomplete in LDCs (Rosenstein-Rodan 1943), thus necessitating a massive state-coordinated investment in the entire network, each industry coming online and growing as needed by other industries to build a self-sustaining whole (Morck, 2011). Rosenstein-Rodan (1943) concluded that integrating all such interdependencies within a single entity is essentially a call for central planning, and calls for the state to coordinate and subsidize a massive cross-industry surge of capital investmenta big push although Hayek (1945) observed that Rosenstein-Rodan specifically, stressed that governments lack the detailed information needed to coordinate a big push.…”

Section: Theoretical Argument For Investment In Infrastructurementioning

confidence: 99%

Is Investment in Infrastructure Worth It?

Momoh

Ezike

2018

JBSEE

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The argument for investment in infrastructure and its implication for economic development have attracted a robust discourse. This paper adds a voice to the significance importance of the subject matter by examining the theoretical arguments for infrastructure investment. We further developed a framework, which explains the need for investment in infrastructure and its flow both as input for recycling and input for further production as a final output for consumption. The study shows that no one individual can provide infrastructure but rather all the activities of the various industries sit on a platform from which payment for its use is shared amongst all users. It concludes that Investments in infrastructure are not just one off event but planned to achieve a robust economic development.

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Finance and Governance in Developing Economies

Cited by 9 publications

References 150 publications

Corporate governance in Latin American firms: Contestability of control and firm value

Corporate governance in Latin American firms: Contestability of control and firm value

Research on financing efficiency of China's strategic emerging industries based on super efficiency DEA and tobit model

Is Investment in Infrastructure Worth It?

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