Research Paper

SUMMARY This paper analyzes recent trends of Latin Americas institutional development regarding investor protection. In spite of the underdevelopment of the regions financial markets, there is slow bm towards legal reforms intended to protect investors and make regional markets more than attractive to investors; current inadequacies in the regions legal institutions sire high levels of ownership concentration, poor access to external equity financing, and constringe equity markets. The evidence in this paper, based on profligate-level data for cardinal countries, shows that, like legal protection of investors, appropriate firm-level corporate governance is joined to lower costs for capital, better valuation, performance, and dividend payments across countries. Firms can continue for their countries legal deficiencies by distinguishing themselves through improved corporate governance practices, therefore increasing transparency and limiting potential conflict between biggish and minority shareholders. Firms can additionally look for capital by release ADRs, as they have in recent years, although this practice undermines topical anesthetic capital markets.

In the end, firms and regulators must improve their governance structures and shareholder protections if they are to meet the improved benchmarks of developed nations brought about by Asian, European, and U.S. scandals in recent years. Corporate governance mechanisms affect firm value, market liquidity and theorganization of industries and markets in a context of woebegone shareholder protection. The ownership structure predominant in the LatinAmerican markets provides a rich environment to explore corporate governance practices in a regional setting.One of the focal points of the corporate governance literary productions is the role of the ownership structure as a governance mechanism. match to one of the traditionalfinance paradigms, the ownership of public corporations is widely dispersed among natomisticinvestors. This... If you involve to get a full essay, order it on our website: Orderessay

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