...CORPORATE OWNERSHIP IN LATIN AMERICAN FIRMS: A COMPARATIVE ANALYSIS OF DUAL-CLASS SHARES Luiz Ricardo Kabbach de Castro Rafel Crespi i Cladera Universitat de les Illes Balears Ruth V. Aguilera University of Illinois at Urbana-Champaign We assembly new data on dual-class firms in Latin America and analyze the relationship between the largest shareholder characteristics and its decision to leverage voting rights. First, we describe who are the largest shareholders in Latin American firms. Second, we find that both the type and origin of the largest shareholder, together with firm- and country-level characteristics, are important determinants to explain the decision to separate voting from cashflow rights. To tackle the determinants of ownership in Latin American publicly listed firms has both managerial and policy implications because the largest shareholders are those in charge to define business strategies and the allocation of firms’ resources. Key words: Corporate ownership; dual-class shares; voting rights; cash-flow rights; Latin America. 1 INTRODUCTION Most of the analysis of the Modern Corporation has focused on the conflicts of interest between managers and owners. Yet, recent literature, extending the discussion of the classic ownermanager conflict, adds minority versus majority shareholders conflict where more concentrated ownership structures takes place (La Porta, López-de-Silanes, & Shleifer, 1999; Villalonga & Amit, 2009; Young, Peng, Ahlstrom, Bruton,...
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...levels. Thus a new entrant must produce high volume to reduce the cost and make profits. If a new entrant with vast land produces fewer bananas then it will be very costly to maintain the banana production. • Licenses: The government regulations may be very stringent requiring various licenses to trade banana in the world market. The licenses would be very expensive to own which is a barrier to new entrants. • Distribution channels: It is required to have a strong distribution system globally to distribute bananas in the world market. This is developed through years of experience in the market. It is impossible to imitate such an effective distribution system by the new entrants. Question 2 Elasticity of Demand There are four general determinants of elasticity of demand. Only three are relevant; the fourth is time. This means that the longer the time period the higher the elasticity...
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...FOREIGN DIRECT INVESTMENT IN EMERGING MARKET COUNTRIES Report of the Working Group of the Capital Markets Consultative Group September 2003 This report reflects the views of private sector participants in a working group examining the determinants, trends and prospects of foreign direct investment (FDI) in emerging market countries. The views expressed should not be attributed to the staff and management of HSBC, members of the CMCG, the International Monetary Fund, and the World Bank. -2- Contents Page Main Findings ..........................................................................................................................3 I. II. III. Introduction....................................................................................................................10 Overview of FDI in EMCs.............................................................................................14 Motivation, Location, and Decision-Making.................................................................15 A. Motivation ...............................................................................................................15 B. Locational Determinants of FDI..............................................................................16 C. Decision-Making .....................................................................................................19 Financing, Global Conditions, and Managing FDI Risks................................................
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...level has led, for decades now, to the emergence of various theories that intend to explain and justify why that motivate and manage to be determining what factors to establish the place in which it was made. The main ideas of these approaches are discussed briefly herein in order to elaborate on this phenomenon, although there is no agreed explanation regarding the causes of the location of this type of investment and of the features that must meet the destination to attract this level of investment. FDI globally decreased 18% in 20121, reaching USD 1.35 billion. The fragile state of the global economy and the uncertain situation in politics were the main causes. Considering the estimates of the United Nations Conference on Trade and Development (UNCTAD), by the end of the year 2013 FDI will have reached a level close to the 2012 level. With the gradual improvement in macroeconomic conditions globally will increase investor confidence in the medium term, "transnational corporations (TNCs) could convert their record levels of cash holdings in new investments. FDI flows could then reach the level of 1.6 billion dollars in 2014 and 1.8 billion in 2015 "(see Figure 1), although the agency warns that there is a risk that a decline in FDI share as a result of certain factors ("the structural weakness of the global financial system, the possible deterioration of the macroeconomic environment and the great uncertainty about policies in areas essential for investor confidence")...
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...| Essay, Custom Research Paper: Argumentative Essay on Child Labor Laws and Regulations | | | | Child labor occurs along a continuum, with harmful and exploitative work that endangers the welfare and potential of the child at one end of the spectrum and light work and often beneficial training and apprenticeship at the other. National and international labor standard regulations with respect to what constitutes a legally permissible minimum age of employment accordingly depend typically on a range of criteria including (a) the type of work, as distinguished by the degree of hazard a child faces, or whether the child is subject to exploitation, or the worst forms of child labor; (b) the sector of employment, whether in agriculture, manufacturing, or family businesses or the household; and (c) the degree to which child labor work interferes with schooling, depending on the number of hours a child is put to work, say, per week.Though child labor statistics inevitably paint an aggregate picture, the coverage of national and international statistics has improved, reflecting a diversity of activities that come under the umbrella of child labor work. International Labour Organization (ILO) statistics treat any child as economically active with performance of at least 1 hour of work during the week prior to asurvey. The ILO also defines a child laborer as synonymous with (a) an economically active person between the ages of 5 and 11, and (b) an individual between the ages of 12...
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...Programme of Study: MSC INVESTMENT Module: International Treasury Management Tutor: Students ID Number: Date: 23/3/2016 Programme of Study: MSC INVESTMENT Module: International Treasury Management Tutor: Students ID Number: Date: 23/3/2016 Contents 1. Introduction 3 2. Capital structure 4 2.1. Theories 4 2.2. Types of capital 6 2.3. Sources of capital 7 2.4. Reasons of conducting different capital structure 9 3. Capital Structure of NEXT 11 3.1. Comparative analysis of internal and external financing of NEXT 11 3.2. Comparative analysis of debt capital and equity capital of NEXT 13 3.3. Comparative analysis of current debt and non-current debt of NEXT 15 3.4. Financial performance of NEXT 2013-2015 17 4. Conclusion 19 5. Reference 20 6. Appendixes 22 Appendix I 22 Appendix II 23 Appendix III 25 Appendix IV 27 Appendix V 29 Appendix VI 30 1. Introduction Capital structure of firms is arguably one of its most important choices, as Milken (2009) said “It doesn't matter whether a company is big or small, capital structure matters. It always has and always will”. Most companies pay much attention to their capital structure, NEXT is one of the good representative among those companies. NEXT, founded in 1864, now is the largest apparel corporation in UK, which currently operates more than 500 retail stores and its online shopping website in both UK and international market to provide clothing...
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...Human development in a basis of brainpower is one of the most fundamental cause not only economic development but also in terms of development in general. Human endures intellect toward productive growth in developed countries which mainly relies on technological innovation. However, as for developing countries, growth and development follows developed countries by forcing the technology mechanism and changing the structure of production towards activities with higher levels of productivity. The evidence show that during 1970s and 1980s there were of structural changes in economic activities where developing countries enters the global markets. In his preface, Giplin (2001; xi) point out that “…important step toward the creation of a truly global economy, since the mid-1980s the world has also witnessed the extraordinary growth of economic regionalism as a countermovement to economic globalization.” Similarly, Magdoff (1992; 50) state that “In fact, capital exports have helped shape the evolving global economy ever since the end of the Second World War”. Moreover, Glyn and Sutcliffe (1992; 79) point out that “…left the world economy leaderless in the 1970s and 1980s with increasingly open economies disciplined by market forces, but without a unique center of gravity.” This implies that global economies forces t To provide a well-structured discussion, this essay will begin by briefly introducing into how neo-liberalism in the mainstream of development thinking greatly achieve...
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...The terms ‘imperialism’, defines the dynamics of a long-term process of social change and transformation, together with associated class struggles and also to establish hegemony over the world system.1 The old imperialism rise in the late 19th century as direct consequences of industrial capitalism and engaged Europe, the US and Japan in a competitive struggle for markets and territorial control. 2 Actually, structures of exploitation mean exploit a country by using certain level of strategies. In old imperialism, firstly they enter a country by colonized them, secondly they produced and exported manufactured goods in exchange for raw materials, minerals and other industrial inputs or consumer commodities their colonies. Imperialist dominated all the resources in colonial countries where this is way allowing them to accumulate capital3 via ‘unequal exchange 4and unequal development. According to James Petras, there are no differences in new imperialism and old imperialism. But there are some differences, which are in new imperialism, there more focus on development as a form of imperialism. There is still existing of structure exploitation in new imperialism where developing countries are dominated by multinational corporations. In addition, most developing countries where introduced and practice the neo-liberalism system which is also a part of structure exploitation. Neo-liberalism benefited and makes richer the capitalist as much as possible while the developing countries remain...
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...form of imperialism. There is still existing of structure exploitation in new imperialism where developing countries are dominated by multinational corporations. In addition, most developing countries where introduced and practice the neo-liberalism system which is also a part of structure exploitation. Neo-liberalism benefited and makes richer the capitalist as much as possible while the developing countries remain underdeveloped. Industrialization is a process of transition from agriculture sector to industry sector where there are consists of two parties, capitalist and workers. The events that led to the adoption of industrialization as a strategy to promote economic growth for post-colonial in East Asia in late 1960’s and Latin America after the Second World War is...
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...TABLE OF CONTENTS 1. INTRODUCTION...................................................................................................... 02 2. CONCEPTUAL FRAMEWORK............................................................................ 02 3. GLOBALIZATION OF FOOD SYSTEMS IN CONTEXT................................ 03 a. Urbanization.................................................................................................. 03 b. Economics, health and education................................................................. 04 c. Employment................................................................................................... 05 d. Technology and facilitating mechanisms..................................................... 06 4. CHANGES IN DIETARY PATTERNS ............................................................... 07 a. Dietary convergence ..................................................................................... 07 b. Dietary adaptation ....................................................................................... 08 i. Lifestyle changes and adaptation of meal patterns........................... 08 ii. Street foods......................................................................................... 09 iii. Supermarkets .............................................................................
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...JOSÉ LUIS MACHINEA Executive Secretary ALICIA BÁRCENA Deputy Executive Secretary Economic Commission for Latin America and the Caribbean economic commission for latin america and the caribbean C E P A L Review NUMBER 85 APRIL 2005 SANTIAGO, CHILE OSCAR ALTIMIR Director REYNALDO BAJRAJ Deputy Director The CEPAL Review was founded in 1976 and is published three times a year by the United Nations Economic Commission for Latin America and the Caribbean, which has its headquarters in Santiago, Chile. The Review, however, has full editorial independence and follows the usual academic procedures and criteria, including the review of articles by independent external referees. The Review is distributed to universities, research institutes and other international organizations, as well as to individual subscribers, and is also consulted extensively on the Internet. The purpose of the Review is to contribute to the discussion of socio-economic development issues in the region by offering analytical and policy approaches and articles by economists and other social scientists working both within and outside the United Nations. Accordingly, the editorial board of the Review extends its readers an open invitation to submit for publication articles analysing various aspects of economic and social development in Latin America and the Caribbean. The opinions expressed in the signed articles are those of the authors and do not necessarily reflect the views of the...
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...the table in front of me and my Nokia phone is next to it. My roll-on hand luggage is at my feet, a SwissGear brand, bought in London with a tag on the side which reads ‘Made in China’. Across the table from me, sits a group of young American men on their way to Beijing. Announcements in the background call the departure of an Air France flight. A family walks by; a man, a woman and a girl of about six. The man calls out to the little girl and his accent confirms for me, his East Indian heritage. The girl’s attention is absorbed in a bright pink Nintendo DSi. Later at the gate, a seventy five year old woman from Nebraska, sits next to me and tells me that she is on her way for an ‘overseas adventure’ in South America. She has always wanted to do this, she says, handing me what looks like a brochure. The words across the top actually read ‘Overseas Adventure’. This seventy year old woman found the tour on the internet, whilst surfing on her grandson’s computer. Another young child is sitting across from me. I don’t recognise the East-European sounding language in which the woman sitting next to him speaks. The little boy is also absorbed in a DSi. Page 1...
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...Organizational Impact Paper Q/I361 June 12, 2014 Nikki Jackson Organizational Impact Paper Innovation can transform and possibly reinvent services and products to accommodate the needs and demands of the market. Today innovation is taking organizations and rewiring them for growth. In a time of change and reduce profits, organizations are retooling and finding the need to modify business strategy. Without innovative programs or ideas, change is difficult for a business however; change can’t be avoided in this competitive world of business. We will evaluate the impact of innovation on South West Air Line, General Motors, and JCPenny, AT&T, and talk about the impact on strategy, process, product, or services with each type of organization. All organizations noted above use innovation and creativity as the main source for improving business strategy. Southwest Airlines Southwest airlines are a company that started with very little money back in 1971 that now operates on the offensive as an innovator. The innovation that made Southwest Airlines prevalent is the way they can offer lower fares, the regularity of flight accessibility and on time departures and arrivals, and their exceptional safety record. Southwest is always thinking innovation which keeps the airline in the forefront in the industry, while using their innovated thinking the airlines acquired jet fuel at a lesser amount for future use; this is clever innovative and creative thinking. “Tickets less travel...
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...THE FUTURE OF ECONOMIC CONVERGENCE* Dani Rodrik Harvard University August 2011 * This is a paper prepared for the 2011 Jackson Hole Symposium of the Federal Reserve Bank of Kansas City, August 25-27, 2011. I am grateful to Arvind Subramanian for helpful conversations and to UNIDO for making their INDSTAT4 data base available. I also thank Cynthia Balloch for research assistance and the Weatherhead Center for International Affairs at Harvard for financial assistance. I. Introduction Novelists have a better track record than economists at foretelling the future. Consider then Gary Shteyngart‘s timely comic novel ―Super Sad True Love Story‖ (Random House, 2010), which provides a rather graphic vision of what lies in store for the world economy. The novel takes place in the near future and is set against the backdrop of a United States that lies in economic and political ruin. The country‘s bankrupt economy is ruled with a firm hand by the IMF from its new Parthenon-shaped headquarters in Singapore. China and sovereign wealth funds have parceled America‘s most desirable real estate among themselves. Poor people are designated as LNWI (―low net worth individuals‖) and are being pushed into ghettoes. Even skilled Americans are desperate to acquire residency status in foreign lands. (A degree in econometrics helps a lot, as it turns out). Ivy League colleges have adopted the names of their Asian partners and yuan-backed dollars are the only safe currency. This is sheer fantasy...
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...countries have been conducted in terms of country competitiveness, cultural, political and legal environments and the strategies used by Walmart upon entry. Tying into these international business factors, specific aspects of international economic integration, monetary systems, social responsibility and corruption have also been reviewed. While being part of one continent and a common trade bloc (NAFTA, the North American Free Trade Agreement), considerable differences between Canada and Mexico are apparent. These differences are individually analyzed on the following pages. Inevitably, they are best understood in the context of the two countries' long-standing economic and cultural ties to Walmart's home country, the United States of America. Walmart gained enormous success under its current low-price business model in both Canada and Mexico; therefore it is recommended that Walmart maintain its current strategy of delivering products at everyday low prices in both countries....
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