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Ownership Structure, Firm Value And Investment Opportunities Set: Evidence From Mexican Firms, Juan M. San Martín-Reyna, Jorge A. Durán-Encalada
Ownership Structure, Firm Value And Investment Opportunities Set: Evidence From Mexican Firms, Juan M. San Martín-Reyna, Jorge A. Durán-Encalada
Journal of Entrepreneurship, Management and Innovation JEMI
This paper analyses the influence of ownership, board of directors, and financial leverage on companies’ performance when these either face, or do not face, profitable growth opportunities. Towards that end we examined a sample of 83 listed Mexican firms during the period 2005-2011. The results confirm the relevance of debt and board of directors in terms of firm market value by showing a negative relationship between performance and both, board of directors and leverage, in the presence of growth opportunities. In contrast, the relationship between debt and performance becomes positive when firms have no profitable investment projects. The results also …