2026-10-11T11:32:35Zhttps://riubu.ubu.es/oai/request

oai:riubu.ubu.es:10259/122552026-10-10T00:05:32Zcom_10259_7380com_10259_5086com_10259_2604col_10259_7381

Lizarzaburu Bolaños, Edmundo García Gómez, Conrado Diego López Iturriaga, Félix Javier Díez Esteban, José María 2026-10-09T07:21:20Z 2026-10-09T07:21:20Z 2026 2214-8450 https://hdl.handle.net/10259/12255 10.1016/j.bir.2026.100857 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. application/pdf eng Elsevier Borsa Istanbul Review. 2026, V. 26, n. 5, 100857, p. 1-17 https://doi.org/10.1016/j.bir.2026.100857 Attribution-NonCommercial-NoDerivatives 4.0 Internacional http://creativecommons.org/licenses/by-nc-nd/4.0/ info:eu-repo/semantics/openAccess Corporate risk Latin America Formal institutions quality Financial constraints MILA Empresas-América Latina-Finanzas Business enterprises-Latin American-Finance Corporate risk and formal institutions: is Latin America different? info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Borsa Istanbul Review 26 5, 100857 1 17