Institutional framework, concentration of ownership and results of large family corporations in Latin America and Spain

2015 ◽  
Vol 15 (4) ◽  
pp. 409-426 ◽  
Author(s):  
Carmen Galve-Górriz ◽  
Alejandro Hernández-Trasobares
Keyword(s):  
Latin American ◽  
Family Firms ◽  
Large Family ◽  
Ordinary Least Squares ◽  
Institutional Framework ◽  
Average Quality ◽  
Content Type ◽  
Regulatory Frameworks ◽  
Two Samples ◽  
Latin American Countries

Purpose – This paper aims to clarify the relationship between institutional framework, concentration of ownership in family firms and results. Design/methodology/approach – Data comprises two samples of family firms from eight Latin American countries and Spain in the year 2010. The first sample contains the largest 20 corporations from each country. The second comprises the 20 largest listed family corporations in each country. To test the hypothesis, the study uses ordinary least squares. Findings – First, firms located in countries with a higher than average quality of the institutional and regulatory frameworks are less concentrated in ownership than firms located in countries with lower than average quality and development of institutional and regulatory framework. Second, the influence of the concentration of the ownership in the performance is more important in countries with higher developed institutional and regulatory frameworks. Finally, first-generation large family firms obtain higher results than large family firms in second generation or beyond. Research limitations/implications – The study is limited to one year and there are few family firms in Latin American countries. The study only considers some features of ownership, and there is no information about board of directors ' composition. Practical implications – Institutional framework determines concentration of ownership in family firms and the influence of concentration of ownership in performance. Originality/value – The study provides new evidence in areas of corporate governance and family firms, analysing a sample of Latin American and Spanish firms, representatives of the civil legal system and a weaker institutional framework. The study uses the corruption perception index like a control variable.

Evolution of financial inclusion in Latin America

2020 ◽  
Vol 33 (2) ◽  
pp. 261-276
Author(s):  
Lisana B. Martinez ◽  
Valeria Scherger ◽  
M. Belén Guercio ◽  
Sofía Orazi
Keyword(s):  
Latin American ◽  
Credit Cards ◽  
Financial Inclusion ◽  
Content Type ◽  
The World Bank ◽  
The Mean ◽  
Main Determinants ◽  
Binary Probit ◽  
Positive Evolution ◽  
Latin American Countries

PurposeThis paper analyses the evolution of the financial inclusion and its main determinants in seven Latin American countries.Design/methodology/approachThe database used is the Global Findex from the World Bank for the latest data released that includes the years 2011 and 2014. The variables used are formal financial accounts, formal savings and formal credit as proxies of financial inclusion for the years of study. Moreover, the use of debit and credit cards is considered. The methodologies applied are the mean difference tests, in order to contrast the hypotheses of the inclusion evolution and binary probit regressions models.FindingsThe results of the analysis show that there is a positive evolution in the use of financial instruments in the countries of the sample, especially in the use of formal accounts. On the other hand, considering the characteristics of the individuals, age, level of education and income positively affect their financial inclusion.Originality/valueThere are no similar works for the region of study that allow us to evaluate the evolution of financial inclusion considering the variables selected in the literature. It is possible to clearly fulfil the proposed objective, highlighting the importance of implementing financial inclusion policies in view of the low percentage of use of the instruments in the analyzed countries.

Family firm CEOs: human capital and career success

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria Rita Blanco ◽  
Miguel Angel Sastre-Castillo ◽  
Maria Angeles Montoro-Sanchez
Keyword(s):  
Human Capital ◽  
Latin American ◽  
Quantitative Methods ◽  
Family Firms ◽  
Family Firm ◽  
American Family ◽  
Graduate Degree ◽  
Capital Theory ◽  
Content Type ◽  
The Way

PurposeThis article explores the influence of education and experience on the time to the top in family and non-family CEOs who work for Latin American family firms.Design/methodology/approachIn order to achieve these objectives, this study draws upon human capital theory as well as career and family firm literature. The careers of 129 CEOs of family firms who form part of the América Economía ranking were analyzed and quantitative methods were used.FindingsIn Latin American family firms, family CEOs reach the top faster than their non-family counterparts. In addition, the influence of human capital variables on the way to the top differs between the two groups. For family CEOs, obtaining a graduate degree delays the way to the top, while for non-family ones, it reduces the time to the top. As regards experience, for promoted family CEOs, the greater the percentage of the career spent in the organization they lead, the shorter the time to the top. No support was found for either the influence of having worked for just one firm or having had elite graduate education abroad, in multilatina CEOs.Practical implicationsIndividual career management suggestions for future CEOs as well as specific guidelines for talent managers are proposedOriginality/valueThis is the first study to explore the influence of human capital indicators on the time to the top in Latin American family firm CEOs.

Job flexibility and job satisfaction among Mexican professionals: a socio-cultural explanation

2018 ◽  
Vol 40 (5) ◽  
pp. 921-942 ◽  
Author(s):  
Miguel A. Baeza ◽  
Jorge A. Gonzalez ◽  
Yong Wang
Keyword(s):  
Job Satisfaction ◽  
Latin American ◽  
Content Type ◽  
Women Employees ◽  
Mexican Society ◽  
Job Flexibility ◽  
Cultural Explanation ◽  
The Relationship ◽  
Latin American Countries

Purpose The purpose of this paper is to study how job flexibility influences job satisfaction among Mexican professionals, and focus on the role of key socio-cultural moderators relevant to Mexican society. Design/methodology/approach The paper explore how this relationship may be more important for women, employees with dependents such as children and elder parents and younger generations of professionals (e.g. Millennials). Findings The authors find that job flexibility is positively related to job satisfaction. This relationship is stronger for employees without dependents, as well as for younger generations of professionals (e.g. Millennials). Surprisingly, the relationship between job flexibility and job satisfaction does not differ by gender. The findings explain why job flexibility is more conductive to job satisfaction for employees without dependents, who tend to belong to younger generations. Originality/value Overall, the findings present important implications for managing job flexibility in Mexico and other Latin American countries, particularly for younger professionals.

Kaizen, a continuous improvement practice in organizations

2018 ◽  
Vol 30 (4) ◽  
pp. 255-268 ◽  
Author(s):  
Karla María Alvarado-Ramírez ◽  
Víctor Hipólito Pumisacho-Álvaro ◽  
José Ángel Miguel-Davila ◽  
Manuel F. Suárez Barraza
Keyword(s):  
Empirical Evidence ◽  
Continuous Improvement ◽  
Latin American ◽  
The State ◽  
Structured Interviews ◽  
Managerial Behavior ◽  
Content Type ◽  
Service Companies ◽  
The Impact ◽  
Latin American Countries

PurposeThe purpose of this paper is to compare the practices of continuous improvement that are applied in medium and large manufacturing and service companies in two Latin American countries. At the same time, benefits and barriers experienced by these companies with regard to sustainability of continuous improvement are explored.Design/methodology/approachIn order to generate a comparative study between two Latin American countries, interviews were conducted with managers linked to continuous improvement in medium and large companies in the State of Puebla and the Metropolitan District of Quito, which are important areas in Mexico and Ecuador, respectively. Data were collected by means of document analysis, semi-structured interviews, and direct observation.FindingsCompanies in both countries identify the use of various techniques and/or tools for continuous improvement. The results of the empirical evidence show how the impact of the application of the techniques has been beneficial in economic and human terms. Thus, the exploratory study has permitted the identification of the drivers and inhibitors in the maintenance of continuous improvement.Research limitations/implicationsThe research is based on only two areas of the Latin American countries: Mexico and Ecuador. Their results can therefore not be generalized. The approach is applied in a specific environment, namely, the State of Puebla and the Metropolitan District of Quito. This study incorporates the perception of managers, directors, and/or supervisors involved in continuous improvement processes.Practical implicationsThis paper seeks to provide analytical input. The study is of great interest to researchers, managers, consultants, and professionals linked to projects of continuous improvement who wish to incorporate continuous improvement practices which are sustainable over time. A new managerial behavior is the basis of continuous improvement, where the training and development of the human resource increases the commitment to achieve organizational changes.Originality/valueThis research makes an empirical contribution to the literature through the understanding of practices of continuous improvement in a Latin American context, highlighting the factors that improve or impede the process of continuous improvement. Particularly in Mexico and Ecuador, the empirical evidence on this subject is still scarce despite the existence of theoretical academic literature.

European franchise expansion into Latin America

2015 ◽  
Vol 38 (2) ◽  
pp. 149-165 ◽  
Author(s):  
Verónica Baena
Keyword(s):  
Economic Development ◽  
Latin America ◽  
Latin American ◽  
Political Stability ◽  
Market Potential ◽  
Geographical Distance ◽  
Market Conditions ◽  
Content Type ◽  
The Usa ◽  
Latin American Countries

Purpose This study aims to enhance the knowledge that managers and scholars have on franchising expansion. In this sense, it is worth mentioning that although the body of literature on international management focusing on emerging markets is growing, the attention paid to the Latin American context continues to be limited. This is surprising given the substantive economic importance of the region with a population over 590 million, and a gross domestic product of approximately US$5 trillion. To cover this gap, the present study examines how a number of market conditions may drive diffusion of franchising into Latin America: geographical distance, cultural distance, political stability and economic development. The authors also controlled for the host country’s market potential, transparency, unemployment rate and efficiency of contract enforcement. Design/methodology/approach This study uses a quantitative approach applied to a sample of 77 Spanish franchisors operating through 4,064 franchisee outlets across 21 Latin American countries in late 2012. They are: Argentina, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Bolivia, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Uruguay and Venezuela. Findings Results conclude that geographical distance between the host and home countries, as well as the level of host country’s political stability, economic development, market potential and transparency are able to drive the spread of international franchising across Latin American nations. Research limitations/implications This study provides readers with a general overview of the current state of global franchising diffusion overseas. Results obtained in this study are useful for understanding and predicting the demand for franchising in Latin American countries. Practical implications Economics reports argue that by 2050, the largest economies in the world will be China, the USA, India, Brazil and Mexico. This fact highlights the substantive importance of Latin America for foreign investors willing to expand their business abroad. In an attempt to give insights from the Latin American context, the present paper develops and tests a model that can be useful to franchisors willing to establish new outlets in the region. In addition, our findings offer guidance to firm managers seeking to target their franchises in Latin America. Franchisors may then use the results of this study as a starting point for identifying such regions whose characteristics best meet their needs of expansion. Originality/value This paper explores how market conditions may drive international diffusion of franchising into Latin American markets. The scant theoretical or empirical attention given to this topic has usually been examined from the USA and British base and focused on developed markets. To fill this gap, the present study analyzes the international spread of the Spanish franchise system into Latin America as a market for franchising expansion.

Peruvian political rivals could unite behind Mendoza

2015 ◽  
Keyword(s):  
Social Responsibility ◽  
Latin American ◽  
Extractive Industries ◽  
Presidential Candidate ◽  
Right Wing ◽  
Content Type ◽  
United Front ◽  
To Receive ◽  
Latin American Countries

Subject A profile of Veronika Mendoza. Significance The election of Veronika Mendoza as presidential candidate for the Frente Amplio ahead of Peru's April elections, gives the left a credible representative in a race otherwise dominated by right-wing candidates. Mendoza is now well-placed to receive endorsement from other sectors of the left on condition that they gain priority positions on a parliamentary slate. Unlike in many other Latin American countries, the left has languished on the sidelines in Peruvian politics since the 1980s. Impacts If it can maintain a united front, the left looks likely to increase its presence in the next Congress. Mendoza represents a far more pragmatic left than that of the former generation of leaders. The left will continue to push for greater social responsibility on the part of extractive industries.

Bolivia economy to perform strongly in 2017

2017 ◽  
Keyword(s):  
Latin American ◽  
Growth Rates ◽  
Public Investment ◽  
Domestic Demand ◽  
Supply Contract ◽  
Content Type ◽  
Latin American Countries ◽  
Gas Supply ◽  
Economic Outlook

Subject Bolivia's economic outlook. Significance Bolivia continues to buck the trend in terms of Latin American growth rates, with official expectations for growth this year of 4.7%, somewhat more than in 2016. Inflation is expected to remain at modest levels of around 4%. As in previous years since the collapse of gas prices, domestic demand will be the motor of growth. Impacts Levels of public investment will remain far higher than in most Latin American countries. Exports should stabilise this year, albeit at rates well below those of the 'super-cycle' years. A new gas-supply contract will need to be negotiated with Brazil over the course of the next year.

Venezuelan early election call raises a range of risks

2018 ◽  
Keyword(s):  
Latin American ◽  
Presidential Elections ◽  
Content Type ◽  
Political Situation ◽  
Constituent Assembly ◽  
State Of The Union ◽  
Secretary Of State ◽  
The Government ◽  
To Come ◽  
Latin American Countries

Significance On January 23, Venezuela’s National Constituent Assembly (ANC) called for presidential elections to be brought forward to before April 30. The move has exacerbated an already fraught political situation and undermined dialogue between the government and opposition parties. Impacts US Secretary of State Rex Tillerson will visit Mexico, Argentina, Colombia, Peru and Jamaica from February 1; Venezuela is a key issue. Oil sanctions would have a catastrophic effect on ordinary Venezuelans; Latin American countries are unlikely to come on board. US President Donald Trump’s State of the Union speech today will be scrutinised for what he says (or does not say) about Venezuela.

Latin American health cooperation shows limited gains

2020 ◽  
Keyword(s):  
Latin American ◽  
Regional Cooperation ◽  
National Level ◽  
Content Type ◽  
Public Health Emergencies ◽  
Pharmaceutical Procurement ◽  
Price Negotiations ◽  
Health Organization ◽  
Latin American Countries ◽  
Health Cooperation

Subject Pharmaceutical procurement and pricing. Significance For over a decade, Latin American countries have engaged in efforts to reduce the price of high-cost medications, whether through joint price negotiations or pooled procurement at the regional and, in some cases, national level. In public health emergencies such as the current COVID-19 pandemic, the Pan American Health Organization (PAHO)'s Strategic Fund is also often utilised to make emergency public sector acquisitions of medications and strategic health supplies, as they do not have to have the cash on hand, but can get what amounts to a short-term, interest-free loan. Impacts Difficulties in regional cooperation may further complicate the fight against COVID-19. The USMCA may strengthen pushback on pharmaceutical costs. Healthcare costs will continue to drive frictions in countries such as Chile.

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