Is there a corporate diversification discount or premium? Evidence from Chile

What is it about?

We analyze the effect of the corporate ownership diversification, i.e., how the involvement in the ownership of other non-financial firms affects the value of listed firms

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Why is it important?

We pioneer the analysis of the ownership diversification in Latin American firms. Our results apply not only to Chile but also to a number of Latin American countries since many of these countries have in common with Chile a concentrated corporate ownership structure and a weak protection of investors’ rights.