RT info:eu-repo/semantics/article
T1 Formal institutions, ICSID arbitration and firm performance: evidence from Latin America
A1 Enríquez-Perales, Sarela
A1 García Gómez, Conrado Diego
A1 Díez Esteban, José María
A1 Lizarzaburu Bolaños, Edmundo
K1 Formal institutions
K1 ICSID
K1 Arbitration
K1 Firm performance
K1 Latin America
K1 Empresas-América Latina-Finanzas
K1 Business enterprises-Latin American-Finance
AB 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.
PB Springer
SN 1309-4297
YR 2023
FD 2023
LK https://hdl.handle.net/10259/12259
UL https://hdl.handle.net/10259/12259
LA eng
DS Repositorio Institucional de la Universidad de Burgos
RD 11-oct-2026