50 Largest Companies: 2000-2005 Shareholder Value Creation in Latin America

9 Pages Posted: 3 Jul 2006

See all articles by Julio Aznarez

Julio Aznarez

University of Los Andes - ESE Business School

Óscar E. Carbonell López

Universidad Panamericana - Instituto Panamericano de Alta Dirección de Empresa (IPADE)

Pablo Fernandez

IESE Business School

Jose M. Carabias

London School of Economics & Political Science (LSE) - Department of Economics

Date Written: June 26, 2006

Abstract

We calculate the shareholder value creation for the 50 biggest companies in terms of market capitalization for Latin America and for 2005 and for the 39 biggest companies in terms of market capitalization for the period 2000-2005.

2005 was a year in which 46 out of the 50 biggest companies in Latin America created shareholder value: US$ 156.606 million. The top three companies that created more value were América Móvil (US$ 16.852 million, MX), Bradesco (US$ 14.957 million, BR) and Petrobras (US$ 14.504 million), while the three companies that destroyed more value were Souza Cruz (US$ -585 million, BR), Antarchile (US$ -281 million, CH) and Cmpc (US$ -98 million, CH). The market value of the 50 companies reported was US$ 644.286 million in 2005.

The created shareholder value of a subsample of 39 companies for the period 2000-2005 shows that Petrobras (US$ 67.253 million, BR) was the top shareholder value creator and Embraer (US$ -1.265 million, BR) the top shareholder value destroyer for the period.

Keywords: Value Creation

Suggested Citation

Aznarez, Julio and Carbonell López, Óscar E. and Fernandez, Pablo and Carabias, Jose M., 50 Largest Companies: 2000-2005 Shareholder Value Creation in Latin America (June 26, 2006). Available at SSRN: https://ssrn.com/abstract=912285 or http://dx.doi.org/10.2139/ssrn.912285

Julio Aznarez (Contact Author)

University of Los Andes - ESE Business School ( email )

Av. Plaza 1905
Santiago
Chile
562) 412 9570 (Phone)

Óscar E. Carbonell López

Universidad Panamericana - Instituto Panamericano de Alta Dirección de Empresa (IPADE) ( email )

Floresta 20, Col. Clavería
Delegación Azcapotzalco 02080
Mexico
52 55 53 990083 (Phone)
52 55 53 99 7682 (Fax)

Pablo Fernandez

IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain
+34 91 357 0809 (Phone)
+34 91 357 2913 (Fax)

HOME PAGE: http://web.iese.edu/PabloFernandez/

Jose M. Carabias

London School of Economics & Political Science (LSE) - Department of Economics ( email )

Houghton Street
London WC2A 2AE
United Kingdom

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