Structural Reform and Firm Profitability in Developing Countries
dc.contributor.author | Cuervo-Cazurra, Alvaro | en_US |
dc.contributor.author | Dau, Luis Alfonso | en_US |
dc.date.accessioned | 2009-11-17T17:01:04Z | |
dc.date.available | 2009-11-17T17:01:04Z | |
dc.date.issued | 2008-07-01 | en_US |
dc.identifier.other | RePEc:wdi:papers:2008-940 | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/64370 | en_US |
dc.description.abstract | We extend agency theory to propose that structural reform positively impacts firm profitability in developing countries because the improvements in external monitoring that accompany structural reform decrease the agency costs faced by firms. However, we also argue that not all firms benefit equally from structural reform because their agency problems are impacted differently. Hence, we propose that structural reform results in higher improvements in profitability for domestic state-owned and domestic private firms than it does for subsidiaries of foreign firms. Results of the analyses of the largest 500 firms in Latin America support the arguments, suggesting that, contrary to the views of many critics of globalization, domestic firms are the main beneficiaries of structural reform in developing countries. | en_US |
dc.format.extent | 307973 bytes | |
dc.format.extent | 1802 bytes | |
dc.format.mimetype | application/pdf | |
dc.format.mimetype | text/plain | |
dc.relation.ispartofseries | wp940 | en_US |
dc.subject | Agency Theory, Structural Reform, Firm Profitability, State-owned Firms, Private Firms,Subsidiaries of Foreign Firms, Developing Countries, Globalization | en_US |
dc.subject.other | F23, G34, L33, M21 | en_US |
dc.title | Structural Reform and Firm Profitability in Developing Countries | en_US |
dc.type | Working Paper | en_US |
dc.subject.hlbsecondlevel | Economics | en_US |
dc.subject.hlbtoplevel | Business | en_US |
dc.contributor.affiliationum | William Davidson Institute | en_US |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/64370/1/wp940.pdf | |
dc.contributor.authoremail | acuervo@moore.sc.edu | en_US |
dc.contributor.authoremail | luis_dau@moore.sc.edu | en_US |
dc.owningcollname | William Davidson Institute (WDI) - Working Papers |
Files in this item
Remediation of Harmful Language
The University of Michigan Library aims to describe library materials in a way that respects the people and communities who create, use, and are represented in our collections. Report harmful or offensive language in catalog records, finding aids, or elsewhere in our collections anonymously through our metadata feedback form. More information at Remediation of Harmful Language.
Accessibility
If you are unable to use this file in its current format, please select the Contact Us link and we can modify it to make it more accessible to you.