Instrumentos derivados, concentración de propiedad y valor de la firma. Evidencia para Chile

Abstract

Background: The use of derivative instruments, as corporate policy to hedge financial risks has a positive impact on the firm value. However, in countries characterized by weak legal protection of the investors' rights and ownership structures highly concentrated, like in Chile, majority shareholders could use this policy to extract wealth from minority shareholders. Methods: Using the Generalized Method of Moments (GMM), this paper analyzes a panel of 133 nonfinancial companies listed on the Santiago de Chile Stock Exchange between 2008 and 2013. Results: The results indicate a positive and statistically significant relationship between the amount of derivatives used and the company value. However, this evidence is conditioned when the majority shareholder (s) keep the control of the company. If the main shareholder or the three major shareholders hold more than 67% of the outstanding shares, then the relationship between the amount of derivatives used and firm value is negative. Conclusion: In analyzing the dynamics between the ownership concentration and the use of derivatives, we findout that when the majority shareholders and the

Determinants of foreign exchange risk management in Latin American firms

“…On the other hand, LA countries exhibit a high ownership concentration and, according to our results, this concentration negatively influences FXR hedging, in the same vein than prior evidence from Chile (Cid Aranda et al , 2017).…”

“…Noteworthy, ownership concentration is negatively associated with the likelihood of FXR hedging, as Cid Aranda et al (2017) report for Chile. The results are robust to several sensitivity analyses.…”

“…Similar to the abovementioned authors and Graham and Rogers (2002), we confirm that avoidance of transaction costs associated with financial distress and investment opportunities are relevant forces of derivatives usage. On the contrary, the cited references fail to prove any tax benefit Cid et al, 2017). Among the limitations of this study, we reckon those that apply to most archival research, that is, that our experimental variables that are significant might reflect the effect of omitted correlated variables.…”

Inappropriate Corporate Strategies: Latin American Companies That Increase Their Value by Short-Term Liabilities

“…Most of these operations are based on a dynamic hedging strategy, which generates a procyclical behavior, where instability appears in the exchange markets, and pressures are generated from contracts and hedges. In Chile, the literature points out that these strategies generated instability in the financial markets in 2008, caused by the short-term financial fragility to which companies were exposed (Schiozer and Saito 2009;Cid Aranda et al 2017;Dodd and Griffith-Jones 2006).…”

Uso de instrumentos financieros derivados y rentabilidad de empresas no financieras de la Bolsa de Valores de Lima

“…Pradana y Naomi (2018), después de investigar 14 empresas públicas no bancarias de propiedad estatal cotizadas en la Bolsa de Valores de Indonesia, establecieron que las empresas que realizaron cobertura tenían un valor más alto que las empresas sin cobertura. De la misma manera, Nzioka y Maseki (2017), Hadian y Adaoglu (2020), y Cid Aranda et al (2017), tras investigar varias compañías, determinaron que aquellas con cobertura, a través de instrumentos derivados, tienen un valor superior que aquellas sin coberturas. De este modo, se observa que los derivados financieros son herramientas para administrar riesgos que minimizan la variabilidad de las transacciones, manteniendo flujos de caja estables.…”