Resumen This article analyses how the corporate valuation of Latin American firms is affected by the presence of a blockholder institutional investor. The study uses a data set of 562 firms from six Latin American countries for the 1997-2011 period. We found that the presence of an institutional investor has a positive effect of 8% on firm value, which increases to 21% for the cases where there is blockholder coalition with an institutional investor. After dividing the sample by investor type, we found that independent institutional ownership implies a positive premium on firms' Tobin's Q, while the presence of a grey investor has a negative effect on firm valuation. © 2016 Elsevier B.V.
Área temática G23 - Instituciones financieras (excepto bancos); Instrumentos financieros; Inversores institucionales G32 - Política de financiación; riesgo financiero y gestión de riesgos; Estructura del capital y de la propiedad; Valor de empresa; fondo de comercio N16 - Macroeconomía y economía monetaria; Crecimiento y fluctuación económica: América Latina; Caribe