Concentración de la propiedad, riesgo y desempeño de la firma: el caso de la Bolsa de Valores de Lima

by Garrido Koechlin, Juan José

ABSTRACT: Ownership Concentration, the fraction of the shares owned by the biggest shareholder, is one of the determinants of how the relationship between majority and minority shareholders and other stakeholders affect firm behavior. It is of special relevance for economic, managerial, financial and organizational research. This thesis analyzes the relationship between ownership concentration, risk (differentiating firm from market risk) and firm performance, taking as sample those firms listed in the Lima Stock Exchange from 1995 to 2004. Overall, the study shows: first, a negative relationship between the political, social, and economic risk perceived by the controlling shareholder and his level of concentration; second, the negative relationship between the firms risk perception (lagged one period) and its level of concentration; third, it supports Jensen and Meckling (1976), finding a positive relationship between firms concentration and performance; fourth, that the causality of this relationship runs from ownership structure to performance; finally, the firms size has a positive relation with ownership concentration, in accordance with Demsetz y Lehn (1985).