2026-04-26T20:11:46Zhttps://uvadoc.uva.es/oai/request

oai:uvadoc.uva.es:10324/538542022-07-18T09:32:48Zcom_10324_895com_10324_931com_10324_894col_10324_896

Enríquez Perales, Sarela García Gómez, Conrado Diego Díez Esteban, José María Lizarzaburu Bolaños, Edmundo R. 2022-07-05T08:36:13Z 2022-07-05T08:36:13Z 2022 Eurasian Business Review, 2022 1309-4297 https://uvadoc.uva.es/handle/10324/53854 10.1007/s40821-022-00213-4 Eurasian Business Review 2147-4281 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. eng info:eu-repo/semantics/openAccess http://creativecommons.org/licenses/by/4.0/ © 2022 The Authors Atribución 4.0 Internacional Formal institutions, ICSID arbitration and firm performance: evidence from Latin America info:eu-repo/semantics/article