The separation of ownership and control and investment decisions in Mexican manufacturing firms
We study how the ownership and control structures may explain investment decisions of Mexican manufacturing firms. We study them with aggregate indexes and the assessment of several regression sets. We use measures of ownership, management and agency costs. The econometric analysis uses longitudinal census data for 182 industries. Our findings support the claim that agency costs, as a measure of the separation of management and control, and firms` size can explain investment decisions. Furthermore the estimations support the necessity to include investment opportunities and cash flow as control variables. The coefficients of all variables are mostly significant and positive.
|Date of creation:||20 Sep 2010|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brian Cheffins and Steven Bank, 2009. "Is Berle and Means Really a Myth?," Business History Review, Harvard Business School, vol. 83(3), pages 443-474, September.
- Kadapakkam, Palani-Rajan & Kumar, P. C. & Riddick, Leigh A., 1998. "The impact of cash flows and firm size on investment: The international evidence," Journal of Banking & Finance, Elsevier, vol. 22(3), pages 293-320, March.
- Cheffins, Brian & Bank, Steven, 2009. "Is Berle and Means Really a Myth?," Business History Review, Cambridge University Press, vol. 83(03), pages 443-474, September.
- Franklin Allen, 2005. "Corporate Governance in Emerging Economies," Oxford Review of Economic Policy, Oxford University Press, vol. 21(2), pages 164-177, Summer.
- Antonio Ruiz Porras & William Henry Steinwascher Sacio, 2008.
"Gobierno corporativo, diversificación estratégica y desempeño empresarial en México,"
Revista de Administración, Finanzas y Economía (Journal of Management, Finance and Economics),
Tecnológico de Monterrey, Campus Ciudad de México, vol. 2(1), pages 58-73.
- Ruiz-Porras, Antonio & Steinwascher, William, 2007.
"Gobierno corporativo, diversificación estratégica y desempeño empresarial en México
[Corporate governance, strategic diversification and performance of firms in Mexico]," MPRA Paper 3819, University Library of Munich, Germany.
- Ruiz-Porras, Antonio & Steinwascher, William, 2007. "Gobierno corporativo, diversificación estratégica y desempeño empresarial en México
- Klaus Gugler & Dennis C. Mueller & B. Burcin Yurtoglu, 2007. "Corporate Governance and the Determinants of Investment," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(4), pages 598-626, December.
- Stijn Claessens, 2006. "Corporate Governance and Development," World Bank Research Observer, World Bank Group, vol. 21(1), pages 91-122.
- Madden, Gerald P., 1982. "The separation of ownership from control and investment performance," Journal of Economics and Business, Elsevier, vol. 34(2), pages 149-152.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:25237. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.