| Market Value of the Firm |
Enterprise Value (ENTERP) |
Enterprise Value / Total Assets, where Enterprise Value = Quotation x Total Shares + Interest Bearing Liabilities (Current and Non Current) - Cash and Short Term Investments |
Caixe and Krauter (2013)Caixe, D. F., & Krauter, E. (2013). A influência da estrutura de propriedade e controle sobre o valor de mercado corporativo no Brasil. Revista Contabilidade & Finanças, 24(62), 142-153.; Penman, Richardson, and Tuna (2007)Penman, S. H., Richardson, S. A., & Tuna, I. (2007). The book‐to‐price effect in stock returns: accounting for leverage. Journal of Accounting Research, 45(2), 427-467.
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Capital IQ®
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| Concentration of Control |
Concentration of Shares with Voting Rights (CONC) |
Proportion of shares with voting rights belonging to the main shareholder |
Caixe and Krauter (2013)Caixe, D. F., & Krauter, E. (2013). A influência da estrutura de propriedade e controle sobre o valor de mercado corporativo no Brasil. Revista Contabilidade & Finanças, 24(62), 142-153.; Farooq and Zaroauli (2016)Farooq, O., & Zaroauli, I. (2016). Financial centers and ownership concentration: when is ownership concentration value relevant? Evidence from an emerging market. Research in International Business and Finance, 38(1), 236-245.; Li et al. (2015)Li, K. et al. (2015). Board independence, ownership concentration and corporate performance: Chinese evidence. International Review of Financial Analysis, 41(1), 165-175.
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Capital IQ®
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| Economic Environment |
Economic Instability (INST) |
Annual risk rating of the countries |
Luitel, Vanpée, and Moor (2016)Luitel, P., Vanpeé, R., & Moor, L. (2016). Pernicious effects: How the credit rating agencies disadvantage emerging markets. Research in International Business and Finance, 38(1), 286-298.
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Moody's Investors Service |
| Volatility: standard deviation of the logarithmic daily returns on the main theoretical portfolios, calculated based on the closing prices during the 252 trading days in the year |
Klomp and Haan (2009)Klomp, J., & Haan, J. (2009). Political institutions and economic volatility. European Journal of Political Economy, 25(3), 311-326.
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Stock exchanges of the countries investigated |
| Annual Gross Domestic Product (GDP) per capita |
Raddatz (2007)Raddatz, C. (2007). Are external shocks responsible for the instability of output in low-income countries? Journal of Development Economics, 84(1), 155-187.; Ali, and Rehman (2015)Ali, A., & Rehman, H. U. (2015). Macroeconomic instability and its impact on gross domestic product: an empirical analysis of Pakistan. Pakistan Economic and Social Review, 53(2), 285-316.
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F.M.I. |
| Control Variables |
Size |
Logaritmo Natural do Ativo Total |
Himmelberg, Hubbard e Palia (1999)Himmelberg, C. P., Hubbard, R. G., & Palia, D. (1999). Understanding the determinants of managerial ownership and link between ownership and firm performance. Journal of Financial Economics, 53(3), 353-384.
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Capital IQ®
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| (SIZ) |
Natural Logarithm of Total Assets |
Himmelberg, Hubbard, and Palia (1999)Himmelberg, C. P., Hubbard, R. G., & Palia, D. (1999). Understanding the determinants of managerial ownership and link between ownership and firm performance. Journal of Financial Economics, 53(3), 353-384.
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Capital IQ®
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| Profitability (ROIC) |
Return on invested capital (net operating income divided by the sum of net equity and interest bearing liabilities) |
Caixe and Krauter (2013)Caixe, D. F., & Krauter, E. (2013). A influência da estrutura de propriedade e controle sobre o valor de mercado corporativo no Brasil. Revista Contabilidade & Finanças, 24(62), 142-153.; Cho and Pucik (2005)Cho, H., & Pucik, V. (2005). Relationship between innovativeness, quality, growth, profitability, and market value. Strategic Management Journal, 26(6), 555-575.
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Capital IQ®
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| Indebtedness (IND) |
Current liabilities divided by total assets |
Braouezec (2009)Braouezec, Y. (2009). Financing constraint, over-investment and market-to-book ratio. Finance Research Letters, 6(1), 13-22.; Crisóstomo and Pinheiro (2015)Crisóstomo, V. L., & Pinheiro, B. G. (2015). Estrutura de capital e concentração de propriedade da empresa brasileira. Revista de Finanças Aplicadas, 4(1), 1-30.
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Capital IQ®
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| American Depositary Receipts (ADR) |
Dummy variable that takes the value 1 if the company has ADR, and 0 otherwise |
Lang, Lins, and Miller (2003)Lang, M. H., Lins, K. V., & Miller, D. P. (2003). ADRs, analysts, and accuracy: Does cross listing in the United States improve a firm’s information environment and increase market value? Journal of Accounting Research, 41(2), 317-345.
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Capital IQ®
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| Type of Shareholder Control |
Dummies that represent four cases relating to the shareholder control of the firm (Individual, Institutional, State, and Fragmented) |
Xia and Walker (2015)Xia, F., & Walker, G. (2015). How much does owner type matter for firm performance? Manufacturing firms in China 1998-2007. Strategic Management Journal, 36(4), 576-585.
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Capital IQ®
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Source: Elaborated by the authors based on