Ibero-American corporate ownership and boards of directors: implementation and impact on firm value in Chile and Spain

Abstract

From a corporate governance point of view, this paper addresses the question of how corporate ownership and board characteristics influence firm value for a sample of Ibero-American companies. Specifically, we analyse indexed non-financial companies from Chile and Spain for the period 2007-2016, using the GMM panel data technique. Our research is novel in considering a twocountry approach, with one emerging and one developed country, and in analysing how corporate ownership and board characteristics, in addition to contextual variables, determine firm value. Our results assess the efficiency of corporate governance mechanisms. Although findings are intriguing regarding ownership concentration, they confirm the benefits of a good board of directors. This type of board is characterised by a large size, sufficiently independent directors, and a balance in terms of gender diversity. We provide several policy recommendations from our main findings.

Founding-family-controlled firms, intergenerational succession, and firm value

“…This finding is valid in the Chilean context, in which legal protection of minority investors is relatively weak and must be complemented by controlling shareholders. This result is comparable with the finding of Saona et al (2020) concerning Latin American companies; namely, ownership concentration is not efficient enough of a governance mechanism to maximise the value for all shareholders. They argue that the market penalises companies with a subsequent loss of firm value when their ownership concentration is low.…”

State ownership, institutional development, and corporate philanthropic giving: an integrated view of legitimacy–efficiency trade-offs

“…Board characteristics may likewise influence the effects of governance mechanisms (Lu et al, 2016;Saona et al, 2020). Thus, we control for board size, percentage of female directors, duality of the chairman and C.E.O., director ownership, and the C.E.O.…”

Faktor-faktor yang memengaruhi corporate value dengan corporate financial performance sebagai variabel mediasi: Analisis pada perusahaan industri manufaktur yang terdaftar di Bursa Efek Indonesia

“…Nilai perusahaan didefinisikan sebagai nilai pasar yang pada dasarnya diukur dari beberapa aspek, salah satunya adalah harga pasar saham perusahaan tersebut, karena nilai perusahaan dapat memberikan kemakmuran yang sebesar-besarnya bagi pemilik perusahaan jika harga sahamnya meningkat (Kamaliah, 2020). Tobin's Q ratio atau Q ratio telah banyak dijadikan proksi nilai perusahaan (Asante-Darko et al, 2018;Mishra & Kapil, 2018;Rahayu, 2019;Rahayu et al, 2020;Saona et al, 2020;Widnyana et al, 2020). Menurut Ross et al (2019), Q ratio lebih unggul dibanding dengan market-to-book ratio, karena market-to-book ratio fokus kepada nilai yang telah lampau, dan Q ratio lebih mampu memberikan pandangan dari sisi pasar (market value) terhadap perusahaan.…”

“…Menurut Saona et al (2020), pengambilan keputusan dapat dilakukan lebih aktif, efisien, dan kapan saja oleh dewan direksi yang berjumlah sedikit, yang kemudian mengarah kepada hasil yang baik bagi perusahaan. Namun di sisi lain, jumlah dewan direksi yang lebih besar memiliki keuntungan karena memungkinkan lebih banyak keragaman dan keterwakilan, lebih banyak informasi terkait faktor-faktor yang memengaruhi perusahaan, lebih banyak koneksi dengan pihak eksternal perusahaan, dan juga tidak mudah terjadi manipulasi (Mishra & Kapil, 2018;Saona et al, 2020). H1: Corporate governance berpengaruh signifikan terhadap corporate value yang dimediasi oleh corporate financial performance.…”