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Corporate governance and international bond issues by Latin American corporations

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  • Núñez Reyes, Georgina
  • Perrotini Hernández, Ignacio
  • López-Herrera, Francisco

Abstract

This paper analyses the relationship between corporate bond issues and the existence of corporate governance frameworks that influence the development of financial markets by reducing information asymmetries and conflicts of interest. To this end, the international corporate bond market is reviewed and corporate governance standards in Brazil and in the four countries belonging to the Latin American Integrated Market (MILA) —Chile, Colombia, Mexico and Peru— are evaluated using a bond issues indicator developed by the Economic Commission for Latin America and the Caribbean (ECLAC), the Andean Development Corporation (CAF) and the Inter-American Development Bank (IDB). The evidence gathered using a probit panel model and a pooled probit model indicates that adherence to corporate governance standards can increase the likelihood that a firm will be able to carry out a successful international bond issue.

Suggested Citation

  • Núñez Reyes, Georgina & Perrotini Hernández, Ignacio & López-Herrera, Francisco, 2018. "Corporate governance and international bond issues by Latin American corporations," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    • Handle: RePEc:ecr:col070:44556
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    2. -, 2015. "Corporate governance in Brazil, Chile, Colombia, Mexico and Peru: The determinants of risk in corporate debt issuance," Documentos de Proyectos 37721, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    3. -, 2014. "La gobernanza corporativa y la emisión de deuda corporativa en Chile y el Perú: el papel de los inversionistas institucionales, las agencias calificadoras de riesgo y la banca de inversión," Documentos de Proyectos 37387, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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