Reacción del precio de las acciones a los cambios de estructura de capital en empresas chilenas: Examinando los efectos de la estructura de propiedad, oportunidades de crecimiento y leverage
| Autor | Jorge A. Muñoz Mendoza, Sandra M. Sepúlveda Yelpo, Carmen L. Veloso Ramos |
| Cargo | Profesor Asistente, departamento de Gestión Empresarial, Universidad de Concepción, Chile/Profesor Asistente, departamento de Gestión Empresarial, Universidad de Concepción, Chile/Profesor, departamento de Gestión Empresarial, Universidad de Concepción, Chile |
| Páginas | 72-94 |
Ecos de Economía: A Latin American Journal of Applied Economics | Vol. 23 | No. 49 | 2019
ISSN 1657-4206 e-ISSN 2462-8107 Vol. 23 No. 49 PP. 71-94 10.17230/ecos.2019.49.4
Research Article
stock price reactions to capital structure chanGes
in chilean firms: examininG the effects of ownership
structure, Growth opportunities and leveraGe
Reacción del precio de las acciones a los cambios
de estructura de capital en empresas chilenas:
Examinando los efectos de la estructura de propiedad,
oportunidades de crecimiento y leverage*
Jorge A. Muñoz Mendozaa, Sandra M. Sepúlveda Yelpob, Carmen L. Veloso Ramosc
Abstract
We analyzed the eects of ownership structure, capital structure and growth
opportunities on stock price reactions when companies issued debt or equity.
Our results, based on event study methodology and IV regressions from a
sample of Chilean firms, indicate that controlling shareholder ownership
has a negative eect on stock price reactions for debt issuances and a positive
eect for equity issuance. These results indicate that debt issuances are a
substitute for majority shareholder monitoring, and that equity issuances are
associated with superior corporate performance. Equity issuances are a means
for expropriating wealth from non-controlling shareholders. Debt and growth
opportunities have a non-linear eect.
Resumen
En este artículo analizamos los efectos de la estructura de propiedad, estructura
de capital y las oportunidades de crecimiento sobre la reacción del precio de
las acciones cuando las empresas emiten deuda o capital. Nuestros resultados,
basados en la metodología de análisis de eventos y regresiones IV sobre una
muestra de empresas chilenas, indican que la propiedad de los accionistas
controladores tiene un efecto negativo en la reacción del precio de las acciones
cuando las empresas emiten deuda y positivo cuando emiten acciones. Este
Palabras clave: Retornos
anormales, Deuda, Estructura de
capital, Expropiación de riqueza.
Keywords: Abnormal returns,
Debt, Capital structure, Wealth
expropriation.
JEL Classification: G14, G31, G32,
G34
Received: 18/07/2018
Accepted: 30/04/2020
Published: 28/05/2020
a. Profesor Asistente, departamento de Gestión
Empresarial, Universidad de Concepción, Chile.
Grupo de Investigación en Economía y Negocios
(GEN) Universidad de Concepción.
E-Mail: jormunozm@udec.cl
ORCiD: https://orcid.org/0000-0002-6775-5307.
b. Profesor Asistente, departamento de Gestión
Empresarial, Universidad de Concepción, Chile.
Grupo de Investigación en Economía y Negocios
(GEN) Universidad de Concepción.
E-Mail: ssepulveday@udec.cl
ORCiD: https://orcid.org/0000-0002-2614-7356.
c. Profesor, departamento de Gestión
Empresarial, Universidad de Concepción, Chile.
Grupo de Investigación en Economía y Negocios
(GEN) Universidad de Concepción.
E-Mail: carmenveloso@udec.cl
ORCiD: https://orcid.org/0000-0001-9390-9974. * Economics and Business Research Group of the Universidad de Concepción.
PP 73 | 98
Stock price reactions to capital structure changes in Chilean firms:
Examining the effects of ownership structure, growth opportunities and leverage
Ecos de Economía: A Latin American Journal of Applied Economics | Vol. 23 | No. 49 | 2019
resultado indica que las emisiones de deuda son un sustituto del control mayoritario de los accionistas
y las emisiones de capital se asocian con un mayor desempeño corporativo. Las emisiones de capital
son un medio para expropiar riqueza de los accionistas no controladores. Las oportunidades de
deuda y crecimiento tienen un efecto no lineal.
1. Introduction
Capital structure decisions have been widely researched in recent decades. Many researchers have
focused their attention on the relationship between information asymmetry and stock price reactions
to changes in firms’ capital structure , due to the possible eects of this relationship on shareholder
wealth. In general, stock price reactions are associated with abnormal negative returns during
security issuance periods, and positive returns during preceding periods (Asquith and Mullins, ;
Mikkelson and Partch, ; Mitto, ; Welch, ; Vithessonthi, a).
According to Masulis (), it is possible for controlling shareholders to expropriate wealth from
minority shareholders through capital structure changes. This would depend on the firm’s ownership
structure, and especially on the participation of controlling and minority shareholders (Armitage, ,
; Liu et al., ). For the Chilean market, it is relevant to analyze this empirical relationship as
Chile has weak investor protections, while firm ownership is highly concentrated among controlling
shareholders. As a result, this favors wealth redistribution away from minority shareholders through
capital structure changes.
Market reactions and potential shareholder wealth changes can depend on other characteristics
of the business, such as debt (Ross, ; Leland and Pyle, ) and growth opportunities (Myers,
; Myers and Majluf, ). However, there is no clear consensus on their eects on stock price
reactions. For example, some studies have indicated that stock prices react positively to debt issuance
mainly in firms with low leverage (Cai and Zhang, ). This reaction implies that markets associate
debt issuance as a means of control over the principal agent problem (Harris and Raviv, ). Other
studies provide a dierent view and document a negative reaction (Diekerns, ). This market
response indicates that higher debt may increase firms’ bankruptcy risk (Raymar, ). Regarding
growth opportunities, empirical studies have demonstrated that their eects on stock prices depend
on their valuation (Smith and Watts, ; Quynh-Nhu, ). The lack of consensus on market
interpretations could be explained by the non-linear eect of these factors on stock price reactions.
For the Chilean market, these relationships are still unanswered questions and their implications are
relevant for firms’ corporate governance and investors, especially when inferring the possible market
reaction to capital structure changes and how it may alter shareholders’ wealth.
This paper analyzes the eect of ownership structure, growth opportunities and leverage on stock
price reactions associated with capital structure changes in Chilean companies. Our research contributes
to the empirical literature in two aspects. First, it quantifies stock price reactions to capital structure
changes. These reactions measure changes in shareholder wealth. Second, it analyzes the impacts of
ownership structure and the possible non-monotonous eects of debt and growth opportunities on
shareholder wealth. This is relevant for investors and firms because it reveals that the stock market
interprets these qualities in dierent ways during capital structure change processes.
We used a sample of companies listed on the Santiago Stock Exchange. We studied
announcements of equity issuances and announcements of corporate bond issuances. The results
Para continuar leyendo
Solicita tu prueba