Can Latin America AML effectiveness impact corruption prevention?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sarahí Cruz Salazar ◽  
Marcio Adriano Anselmo
Keyword(s):  
Latin America ◽  
Latin American ◽  
Money Laundering ◽  
Task Force ◽  
Evaluation Model ◽  
Western Hemisphere ◽  
Content Type ◽  
Multidisciplinary Analysis ◽  
Corruption Prevention ◽  
The Relationship

Purpose The purpose of this paper is to analyze the effectiveness of the Financial Action Task Force (FATF’s) recommendations in Latin America in the fight against Money Laundering (ML) through the Immediate Outcomes 4 (Preventive Measures) and 6 (Financial Intelligence) and the relationship between anti-money laundering (AML) effectiveness and anti-corruption measures. Design/methodology/approach Through quantitative and quality methods measure the performance of the Immediate Outcomes’ levels in compliance with the established FATF’ standards; The objective is to analyze progress in the prevention and identification of ML. Findings The authors discuss the relationship between AML effectiveness and anti-corruption measures starting with the analysis of the best-ranked country in these indicators (IO4 and IO6). Research limitations/implications Mutual evaluations require a long process, which is why the authors do not have all the updated data for all the Latin American countries; only the updated Immediate Outcomes data up to September 16, 2021, are taken. This paper is part of the Research Project “The impacts of corruption in the Western Hemisphere and regional responses.” Originality/value Through a multidisciplinary analysis, the Immediate Results evaluation model is prioritized to measure the effectiveness of the methods applied in Latin America through the IO4 and IO6. The model that presents the best effectiveness is selected and the successes that this country is applying over its peers are analyzed. From this analysis, a quantitative and qualitative analysis can be appreciated.

US will increase Paraguay money-laundering pressures

2019 ◽  
Keyword(s):  
Latin American ◽  
Money Laundering ◽  
Task Force ◽  
Border Area ◽  
Financial Action Task Force ◽  
Content Type ◽  
Lower House ◽  
Financial Action Task

Significance The bill, which now goes to the Lower House, is in line with demands from Gafilat, the Latin American affiliate of the Financial Action Task Force (FATF), which began a long-delayed evaluation of Paraguay’s performance on May 7. This will probably avoid Paraguay returning to the FAFT ‘grey list’ but is unlikely to placate the international financial community. Impacts Abdo Benitez will face an uphill struggle to get anti-corruption legislation through Congress. US pressures will mount with respect to purported terrorism finance in the tri-border area. Lack of progress will complicate relations with the international financial community.

scholarly journals Intangible assets and business performance in Latin America

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fernanda Cristina Lopes ◽  
Luciana Carvalho
Keyword(s):  
Latin America ◽  
Latin American ◽  
Business Performance ◽  
Intangible Assets ◽  
Business World ◽  
Content Type ◽  
Intangible Resources ◽  
New Knowledge ◽  
The Relationship ◽  
Latin American Countries

Purpose The intangible assets of a company have been presented by national and international surveys as a resource to influence the creation of value and the increase in organizational performance. In view of this, this study aims to analyze the relationship between intangibility and the performance of companies in Latin America. Design/methodology/approach For this purpose, multiple regression with panel data was used and three perspectives for measuring intangible resources were defined: representativeness of the intangible asset, accounting measure for measuring the intangible, degree of intangibility and Tobin’ Q, the latter two representing economic and financial measures to determine intangibility. The study covered the period from 2011 to 2017 with a sample of 1,236 publicly traded companies located in some Latin American countries, namely, Argentina, Brazil, Chile, Colombia, Mexico and Peru. Findings The results demonstrated the existence of a significant and positive relationship between the variables of intangibility, degree of intangibility and Tobin’s Q, and the performance variables, return on assets, operating margin and asset turnover, reinforcing the study hypothesis that the greater the investment in intangible resource, the greater the company’s performance. Research limitations/implications The limitations of this study involve the lack of complete information about intangible resources in the financial statements of some companies and some countries, making it hard to analyze the proposed relationship more broadly and accurately. Another limitation involves the causal relationship that may have existed between the regressors of the models defined in the study and their error, thus generating an endogeneity problem in the proposed models. It is recommended for future research to use specific methods to mitigate possible problems of endogeneity in regressions. Practical implications Mainly the possibility of deepening the relationship between intangibility and business performance, thus obtaining new knowledge through the reflexes of this relationship on companies in Latin American countries, finding more consistent results. Social implications The study contributes to the decision-making process in the business world by informing the primary users of accounting information such as investors, administrators, accountants, regulators and creditors. Originality/value This research contributes by addressing a theme whose studies present many gaps, making it possible to deepen the relationship between intangibility and business performance and gain new knowledge through the reflexes of this relationship on companies in Latin American countries.

Heterogeneous research networks in Latin American schools of business management

2015 ◽  
Vol 28 (1) ◽  
pp. 115-134 ◽  
Author(s):  
Luis Antonio Orozco ◽  
José Luis Villaveces
Keyword(s):  
Latin America ◽  
Latin American ◽  
Research Collaboration ◽  
Research Policy ◽  
Business Management ◽  
Scientific Performance ◽  
Content Type ◽  
Advantages And Disadvantages ◽  
Organizational Collaboration ◽  
The Relationship

Purpose The purpose of this paper is to empirically evaluate the effect of heterogeneity in inter‐organizational collaboration networks on international high‐quality scientific performance of the most reputed business management schools in Latin America according to AméricaEconomía ranking. Design/methodology/approach Starting from the debate between advantages and disadvantages of heterogeneity in scientific performance framed in the debate between organizational population ecology and organizational institutionalism theories, this research explores the relationship between heterogeneity, reputation and the most important features for doing research. Using a binomial negative regression, the paper evaluates the partial effect of those variables in the count of scientific production. Findings There is an isomorphical tendency from the most reputed schools to establish heterogeneous networks, showing empirical evidence to normative proposals from Latin America, specially formulated in the light of Sabato triangle. Also there are differentiations between schools in aspects like human capital, double‐degree agreements, and schools’ trajectories. Research limitations/implications It is necessary to choose a wider sample of schools and to include Latin American journals. The study of diversity (between researchers) and its relationship with heterogeneity (between organizations) is also needed. Practical implications The research shows that elite business management schools in Latin America that present better performance also present high levels of heterogeneity in their inter‐organizational collaboration. Therefore, the promotion of heterogeneity could enhance scientific performance and improve techno‐economical networks. Social implications This research hopes to aim the research policy design to be able to steer and promote heterogeneity that could improve the relationship between producers and users of knowledge. Originality/value The relationships between reputation, heterogeneity, and scientific performance in administration in Latin America had not been addressed empirically. The worth of this research is the empirical confirmation to the advantages of heterogeneity, rather than intellectual capital features of schools, in research collaboration that contribute to the debate about heterogeneity and performance.

Corporate governance and firm performance in Latin America: a meta-analysis

2018 ◽  
Vol 31 (1) ◽  
pp. 195-211 ◽  
Author(s):  
Flávia Schwartz Maranho ◽  
Ricardo Leal
Keyword(s):  
Corporate Governance ◽  
Latin America ◽  
Firm Performance ◽  
Latin American ◽  
Boards Of Directors ◽  
Meta Analysis ◽  
Shareholder Wealth ◽  
Content Type ◽  
The Relationship ◽  
Latin American Countries

Purpose The relationship between the role played by corporate governance (CG) mechanisms and shareholder wealth is an important and mature topic in some countries and regions. However, despite the considerable number of studies, the results are still inconclusive. The purpose of this paper is to contribute to the debate around the theme in Latin America through a meta-analysis. Design/methodology/approach The study used meta-analytic procedures to review 42 articles produced by researchers from Latin American countries, whose samples were composed of Latin American firms. Findings The results suggest that CG best practices are associated with better Latin American firm performance. The evidence also suggests that results are moderated by the characteristics of boards of directors, the ownership, and control structure and various simultaneous CG mechanisms, through broad indices and special CG trading segments. Originality/Value The relationship between GC and firm performance possesses certain peculiarities in the case of Latin American countries and the literature on the region is certainly not as abundant and mature. As most of the articles reviewed were written in Portuguese and Spanish and published in local journals, the consolidation produced should also be useful for researchers throughout the world by enabling them to access their ideas.

Using Latin America as a research laboratory

2019 ◽  
Vol 27 (2) ◽  
pp. 122-140 ◽  
Author(s):  
Armando Borda Reyes ◽  
William Newburry ◽  
Jorge Carneiro ◽  
Carlos Cordova
Keyword(s):  
Foreign Direct Investment ◽  
Latin America ◽  
Latin American ◽  
Direct Investment ◽  
Trade Openness ◽  
Recipient Country ◽  
Content Type ◽  
Positive Effects ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to use Latin America as a laboratory to better understand the relationship between inward foreign direct investment (IFDI) and outward foreign direct investment (OFDI) (both in total as well as in regional flows) and also examine the moderating effect of trade openness on that relationship. Latin America is an ideal study context for this purpose because of the relative homogeneity of its countries, which reduces confounding effects and increases comparability. Design/methodology/approach This paper uses longitudinal panel regression models with moderation effects. Secondary data were gathered on IFDI (per country and per country-sector), OFDI (total per country and region-targeted per country) and on trade openness from 11 Latin American countries. Findings IFDI in natural resources is positively associated with OFDI in both overall total flows and regional flows. The effect of IFDI in manufacturing has a consistent negative effect on total OFDI. IFDI in services has positive effects on total OFDI. Additionally, trade openness moderates positively the relationship between total IFDI and both total OFDI and regional OFDI. As a consequence, the authors found evidence suggesting that the relation between IFDI and OFDI in Latin America is positively moderated by trade openness. Originality/value The authors explored the nature of the impact of IFDI on the capacity of the recipient country to compete abroad as expressed by its OFDI flows. Specifically, they elucidated whether trade openness can be considered a suitable mechanism for home country firms to leverage potential spillovers provided by foreign entrants.

Volatility and dependence structures of Latin American stock markets

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guilherme Cardoso ◽  
Karem Ribeiro ◽  
Luciano Carvalho
Keyword(s):  
Latin America ◽  
Latin American ◽  
Stock Markets ◽  
Dependence Structure ◽  
Subprime Crisis ◽  
Time Varying ◽  
Content Type ◽  
Macroeconomic Effects ◽  
The Relationship ◽  
Dependence Structures

PurposeRisk management has been crucial to investors and regulators for pursuing market diversification opportunities and developing strategies to ensure market stability. This study examines the dependence structures of volatility, related to co-movements and macroeconomic effects, among Latin American stock markets and the risk–return spectrum benefits in the Latin American market using time-varying returns and volatility forecasts within a multivariate structure.Design/methodology/approachThe sample comprised the largest stock markets in Latin America during the period from January 2000 to December 2017 and copulas and multivariate models were applied.FindingsThe results indicated that the copula with the best fit for modeling the dependence structure of the markets was symmetric Joe-Clayton with time-varying parameters. The dependence volatility structure was higher in the positive (upper tail) than in the negative (lower tail) returns, which may indicate that the Latin American markets had diversification benefits during downturns. Evidence of market coupling was found during times of the global crisis (subprime crisis) in Latin America. The presence of monetary and temporal effects over the dependence structures suggests that investors may obtain gains in a multivariate structure with copula distributions.Originality/valueThe findings will be of interest to researchers and practitioners for several reasons. First, this study contributes to the growing literature on the relationship between market dependence and volatility. Second, it indicates that the Latin American markets may present diversification advantages during downturns. Third, it informs the influence of macroeconomic effects on Latin American markets. The models that included the nonnormal and asymmetric characteristics of the financial market yielded better results in terms of less information loss and data adherence.

Internationalization and performance: the role of depth and breadth

2018 ◽  
Vol 31 (1) ◽  
pp. 91-104 ◽  
Author(s):  
Andres Velez-Calle ◽  
Fernando Sanchez-Henriquez ◽  
Farok Contractor
Keyword(s):  
Latin America ◽  
Financial Performance ◽  
Latin American ◽  
Content Type ◽  
Negative Effect ◽  
Internationalization Strategies ◽  
And Performance ◽  
Geographical Scope ◽  
The Relationship

Purpose The purpose of this paper is to analyze the relationship between multinationality and firm performance (M-P) in Latin American companies, commonly referred to as multilatinas. The study conceptualizes the depth (intensity) and breadth (geographical scope) of internationalization and examines their effect on financial performance. Although scholars have studied how internationalization in various contexts and industries affects performance, little is known about firms in Latin America. Design/methodology/approach The authors conducted an analysis of the effect of the depth and breadth of multilatina internationalization on financial performance by creating a database using information from America Economia, a specialized Chilean magazine that publishes an annual ranking of multilatinas. Additional data came from the Osiris database of Bureau Van Dijk and Compustat. The hypotheses were tested using an autoregressive heteroskedastic model. Findings The results show that the extent of the depth and breadth of internationalization affects financial performance. Multilatinas’ depth of internationalization has a curvilinear (U-shaped) impact on performance while breadth has an inverted curvilinear impact on performance. Research limitations/implications The theory portion and results expand the literature on firm internationalization and performance by distinguishing between two types of international firm expansion, depth and breadth, and discussing how each contributes to different stages of the three-stage theory of multinationality and performance. Originality/value The findings indicate that multilatinas benefit from their regional expansion, but outside Latin America, expansion has a negative effect on financial performance. They also show that firms can implement different types of internationalization strategies in terms of intensity and scope to achieve better performance.

scholarly journals Technological transition and technological dependency: Latin America–China relations in a changing international order

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Demétrio Gaspari Cirne de Toledo ◽  
Joaquim Elói Cirne de Toledo Júnior
Keyword(s):  
Latin America ◽  
Latin American ◽  
Historical Perspective ◽  
International System ◽  
International Order ◽  
Global Public Health ◽  
Content Type ◽  
The Usa ◽  
Technological Transition ◽  
The Relationship

PurposeThe purpose of this paper is to present a conceptual framework of the relationship between technological transitions and hegemonic transitions in the international system from a historical perspective and discuss its consequences for technologically dependent countries and regions.Design/methodology/approachThis paper analyzes the relationship between technological transitions and hegemonic transitions in the international system from a historical perspective. It then constructs four possible transition scenarios for China's international order and the USA's central role in defining the international order. IT closes with a discussion of how changes in ICT and global health public goods can impact China's position in the international order and opportunities for Latin America–China technology partnerships.FindingsHistorically, technological transitions and hegemonic transitions in the international system simultaneously occur, with the country winning the technological dispute emerging as the international system's hegemon. The USA and China are currently involved in technological races in several next-generation technologies. The outcome of these technological races will define each country's position in the international system in the coming decades and the transformations in the international order.Research limitations/implicationsThis paper is limited to discussing the technologies/sectors: ICT, specifically 5G, and AI technologies, and medical technologies with the potential of global public health goods. Research on other technologies/sectors will provide a deeper understanding of the likely outcomes of the current technological transition and its implications for the balance of power in the international system.Practical implicationsThis paper makes a case for Latin American countries to (1) engage in a pragmatic bargain with China and the USA to establish technological partnerships in emerging technologies and (2) to develop national technology strategies aimed at promoting autonomous technology development capabilities.Social implicationsThis paper addresses the need for Latin America to take a strong stance for technological autonomy, stressing the differences in buying technology and making technology.Originality/valueThis paper presents an original framework of the relationship between technological transitions and hegemonic transitions in the international system. It discusses how technological leadership impacts the international order by establishing relations of technological dominance and technological dependency.

Capitalism and the State in Latin America

2020 ◽  
Author(s):  
Esteban Torres ◽  
Carina Borrastero
Keyword(s):  
Social Sciences ◽  
Latin America ◽  
Social Inequality ◽  
Latin American ◽  
The State ◽  
American Sociology ◽  
The 1950S ◽  
The Relationship

This article analyzes how the research on the relation between capitalism and the state in Latin America has developed from the 1950s up to the present. It starts from the premise that knowledge of this relation in sociology and other social sciences in Latin America has been taking shape through the disputes that have opposed three intellectual standpoints: autonomist, denialist, and North-centric. It analyzes how these standpoints envision the relationship between economy and politics and how they conceptualize three regionally and globally growing trends: the concentration of power, social inequality, and environmental depletion. It concludes with a series of challenges aimed at restoring the theoretical and political potency of the autonomist program in Latin American sociology.

scholarly journals The Influence of Government Effectiveness and Corruption on the High Levels of Homicide in Latin America

2021 ◽  
Vol 10 (5) ◽  
pp. 172
Author(s):  
Spencer P. Chainey ◽  
Gonzalo Croci ◽  
Laura Juliana Rodriguez Forero
Keyword(s):  
Economic Development ◽  
Latin America ◽  
Latin American ◽  
International Variation ◽  
Government Effectiveness ◽  
Latin American Region ◽  
Socio Economic Development ◽  
Structural Variables ◽  
The Relationship ◽  
Latin America Region

Most research that has examined the international variation in homicide levels has focused on structural variables, with the suggestion that socio-economic development operates as a cure for violence. In Latin America, development has occurred, but high homicide levels remain, suggesting the involvement of other influencing factors. We posit that government effectiveness and corruption control may contribute to explaining the variation in homicide levels, and in particular in the Latin America region. Our results show that social and economic structural variables are useful but are not conclusive in explaining the variation in homicide levels and that the relationship between homicide, government effectiveness, and corruption control was significant and highly pronounced for countries in the Latin American region. The findings highlight the importance of supporting institutions in improving their effectiveness in Latin America so that reductions in homicide (and improvements in citizen security in general) can be achieved.

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