PROMARKET REFORMS AND FIRM PROFITABILITY IN DEVELOPING COUNTRIES

• 成果类型: Review
• 署名作者: Cuervo-Cazurra, Alvaro; Dau, Luis Alfonso
• 署名单位: University of South Carolina System; University of South Carolina Columbia
• 刊物名称: ACADEMY OF MANAGEMENT JOURNAL
• ISSN/ISSBN: 0001-4273
• DOI: 10.5465/AMJ.2009.47085192
• 发表日期: 2009
• 页码: 1348-1368
• 关键词: CORPORATE GOVERNANCE; Agency theory; operating performance; PRIVATIZED FIRMS; business groups; rent-seeking; emerging economies; OWNERSHIP; MARKET; strategy

摘要

This study proposes that promarket reforms positively affect firms' profitability in developing countries because the accompanying improvements in external monitoring decrease firms' agency costs. We also argue that firms benefit unequally from promarket reforms because their agency problems are affected differently, proposing that promarket reforms improve profitability more for domestic state-owned and domestic private firms than for subsidiaries of foreign firms. Analyses of the 500 largest firms in Latin America from 1989 to 2005 support the arguments, suggesting that, contrary to the views of many critics of globalization, domestic firms are the main beneficiaries of promarket reforms in developing countries.