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

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