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    Por favor, use este identificador para citar o enlazar este ítem: https://hdl.handle.net/10259/12255

    Título
    Corporate risk and formal institutions: is Latin America different?
    Autor
    Lizarzaburu Bolaños, Edmundo
    García Gómez, Conrado Diego
    López Iturriaga, Félix Javier
    Díez Esteban, José MaríaAutoridad UBU Orcid
    Publicado en
    Borsa Istanbul Review. 2026, V. 26, n. 5, 100857, p. 1-17
    Editorial
    Elsevier
    Fecha de publicación
    2026
    ISSN
    2214-8450
    DOI
    10.1016/j.bir.2026.100857
    Resumo
    This study investigates the relationship between institutional quality and corporate risk in Latin America. Using a sample of 725 firms from Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Peru, and Uruguay over the period 2013-2022, we find that firms operating in countries with stronger formal institutions –as measured by the World Bank's Worldwide Governance Indicators– exhibit lower levels of corporate risk, as captured by reduced Z-scores and market volatility. These results are robust to the use of a composite index based on the six dimensions of the governance indicators and to various empirical techniques. Furthermore, our results suggest that capital market integration –measured through participation in the Latin American Integrated Market (MILA)– reinforces the risk-reducing effect of institutional quality. Moreover, the moderating influence of the MILA is particularly relevant in financially constrained firms.
    Palabras clave
    Corporate risk
    Latin America
    Formal institutions quality
    Financial constraints
    MILA
    Materia
    Empresas-América Latina-Finanzas
    Business enterprises-Latin American-Finance
    URI
    https://hdl.handle.net/10259/12255
    Versión del editor
    https://doi.org/10.1016/j.bir.2026.100857
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    Attribution-NonCommercial-NoDerivatives 4.0 Internacional
    Documento(s) sujeto(s) a una licencia Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 Internacional
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    Lizarzaburu-bir_2026.pdf
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