Does board diversity affect institutional investor preferences? Evidence from Latin America
This paper enquires whether institutional investors have specific preferences on the composition of the board of directors in Latin American firms they hold shares in. The result show that preferences vary significantly in terms of the type of institutional investor. The econometric results suggest...
- Autores:
-
Hoz Moncaleano, María Camila de la
Pombo Vejarano, Carlos
Taborda Ríos, Rodrigo
- Tipo de recurso:
- Work document
- Fecha de publicación:
- 2018
- Institución:
- Universidad de los Andes
- Repositorio:
- Séneca: repositorio Uniandes
- Idioma:
- eng
- OAI Identifier:
- oai:repositorio.uniandes.edu.co:1992/8845
- Acceso en línea:
- http://hdl.handle.net/1992/8845
- Palabra clave:
- Director heterogeneity
Board capital
Institutional investor preferences
Latin America
Inversiones institucionales - América Latina
Mercado de capitales - América
Empresas - Valoración
Capitalistas - Investigaciones - América Latina
G10, G11, G34
- Rights
- openAccess
- License
- http://creativecommons.org/licenses/by-nc-nd/4.0/
| Summary: | This paper enquires whether institutional investors have specific preferences on the composition of the board of directors in Latin American firms they hold shares in. The result show that preferences vary significantly in terms of the type of institutional investor. The econometric results suggest grey institutional investors (pension funds and insurance companies) prefer experience and education, while dislike CEO entrenchment. Independent institutional investors value more directors' professional experience i.e., former CEOs and founders of any firm. Grey investors are more concern on firm corporate governance mechanisms consistent with the agency view, while independent investors are focused in business opportunities in accordance with the resource-based-view of board of directors. |
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