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
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
Versión del editor
Aparece en las colecciones
Documento(s) sujeto(s) a una licencia Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 Internacional









