OWNERSHIP STRUCTURE AND PERFORMANCE: EMPIRICAL EVIDENCE FROM CHILEAN FIRMS

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Francisca Silva, Nicolás Majluf ORCID logo, Ricardo D. Paredes

https://doi.org/10.22495/cocv3i4c1p3

Abstract

This paper analyses the effect of ownership structure (represented by the concentration of the economic rights of the majority shareholder, and the affiliation to a business group) on performance. From a crosssection of publicly traded Chilean firms in the year 2000, we find evidence that the effects on performance depend on ownership concentration in a non-linear way, showing the changing balance of two opposing economic forces: value creation and value expropriation by the controlling shareholder. For the entire sample, the mere fact that a firm is owned by a business group does not affect performance.

Keywords: Ownership Structure, Business Groups

How to cite this paper: Silva, F., Majluf, N., & Paredes, R. D. (2006). Ownership structure and performance: Empirical evidence from Chilean firms. Corporate Ownership & Control, 3(4-1), 175-183. https://doi.org/10.22495/cocv3i4c1p3