Corporate Governance and Firm Valuation in Colombia

51 Pages Posted: 25 Apr 2011

See all articles by Luis H. Gutierrez

Luis H. Gutierrez

Universidad del Rosario

Carlos Pombo

Universidad de los Andes, Colombia - School of Management

Multiple version iconThere are 2 versions of this paper

Date Written: December 2007

Abstract

This paper studies the separation of ownership and control of 108 listed companies in Colombia from 1996 to 2002, finding that voting rights are greater than cash flow rights because of indirect ownership across firms. The paper also examines the association of various ownership and control measures and separation ratios with a firm’s value and performance for the same sample of companies that traded their stock from 1998 to 2002. Large blockholders were found to exert a positive influence upon a firm’s valuation and performance, which validates the positive monitoring approach of large shareholders, but this relationship is not monotonic. The paper further reports results from a 2004 survey which suggests that Colombian firms have been slow to improve their corporate governance practices.

Suggested Citation

Gutierrez, Luis H. and Pombo, Carlos, Corporate Governance and Firm Valuation in Colombia (December 2007). IDB Working Paper No. 473. Available at SSRN: https://ssrn.com/abstract=1820046 or http://dx.doi.org/10.2139/ssrn.1820046

Luis H. Gutierrez

Universidad del Rosario ( email )

Casa Pedro Fermín
Calle 14 # 4-69
Bogota
Colombia
(571) 2970200 ext 676 (Phone)
(571) 3445763 (Fax)

HOME PAGE: http://www.urosario.edu.co/FASE3/profesores/doce_eco_luis_gutierrez.htm

Carlos Pombo (Contact Author)

Universidad de los Andes, Colombia - School of Management ( email )

Carrera Primera # 18A-12
Bogotá
Colombia
571-3394949 (Phone)

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