1.23. Does corporate diversification create value inemerging markets? New evidence from Chile.

Autores: Espinosa Méndez, Christian, Jara-Bertin, Mauricio, Maquieira Villanueva, Carlos, Paulo Vieito, Joäo.

 

Palabras Clave: Diversification, Shareholder ownership concentration, Firm Value.

 

This investigation is the first to analyze the impact of corporate diversification on firm value, controlling for shareholder ownership concentration, in companies listed in one of the most developed stock markets in South America—the Chilean stock market.

In a sample of Chilean firms listed in the Santiago Stock Exchange from 2000–2007, our results show a diversification discount from 4–10%. This discount becomes a premium when the main shareholder holds over 67% of shares (supermajority rule in Chile)…