2026-10-12T20:37:40Zhttps://riubu.ubu.es/oai/request

oai:riubu.ubu.es:10259/122592026-10-10T00:05:40Zcom_10259_7380com_10259_5086com_10259_2604col_10259_7381

Formal institutions, ICSID arbitration and firm performance: evidence from Latin America Enríquez-Perales, Sarela García Gómez, Conrado Diego Díez Esteban, José María Lizarzaburu Bolaños, Edmundo Formal institutions ICSID Arbitration Firm performance Latin America Empresas-América Latina-Finanzas Business enterprises-Latin American-Finance This paper analyzes how a country’s formal institutional quality impacts the performance of listed companies across different Latin American countries (namely, Argentina, Brazil, Colombia, Mexico, Peru, and Chile) and industries. Latin America provides a unique setting to address this question due to the region’s high institutional instability. The sample consists of 571 large listed companies, with a total of 8576 observations, for the period 2004–2019. Results show that the quality of a country’s formal institutions is positively related to firm performance, measured through two alternative variables (ROA and Tobin’s Q). Additionally, countries that are signatories of the ICSID agreement provide companies with a more stable environment in which to do business, which ultimately has a positive impact on their performance. However, as the number of cases recorded before the ICSID increases, the relationship turns negative. The paper provides a more comprehensive understanding of formal institutions by considering six alternative governance dimensions. Moreover, international arbitration is found to be a substitute for formal institutions in Latin American countries. 2026-10-09T08:23:22Z 2026-10-09T08:23:22Z 2023 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion 1309-4297 https://hdl.handle.net/10259/12259 10.1007/s40821-022-00213-4 2147-4281 eng Eurasian Business Review. 2023, V. 13, n. 2, p. 429-464 https://doi.org/10.1007/s40821-022-00213-4 Atribución 4.0 Internacional http://creativecommons.org/licenses/by/4.0/ info:eu-repo/semantics/openAccess application/pdf Springer https://riubu.ubu.es/bitstream/10259/12259/4/Enriquez-ebr_2023.pdf.jpg Hispana TEXT http://creativecommons.org/licenses/by/4.0/ RIUBU. Repositorio Institucional de la Universidad de Burgos https://hdl.handle.net/10259/12259