Corporate Valuation and Governance: Evidence from Colombia

We examine for the first time the association of different measures of ownership and control, and separation ratios with firm’s value and performance for 108 non-financial firms that traded their stock during the period 1998 to 2002. We found that large blockholders exert a positive influence upon firm’s valuation and performance, which validates the positive monitoring approach of large shareholders, but also found that this relation is not monotone implying that when separation of control and ownership tends to increase, a negative effect is exerted on firm’s valuation. Furthermore, we report first estimates of a survey of corporate governance practices conducted in 2004 for 43 Colombian non-financial companies. The index’s scores suggest that implementation of good governance in Colombian firms has been slow and poor as measured by the average of the Index that is below half the maximum attainable value. Regrettably, we did not find any support to recent theories that predict a positive association between good governance practices, measured by the CGI, and performance. At most there exists a positive relationship for sub-index but the results were not statistically significant in general.Ownership, Control, Corporate Governance, Colombia

Corporate Valuation and Governance: Evidence from Colombia

This paper examines for the first time the association of different ownership and control measures and separation ratios with a firm`s value and performance for 108 non-financial firms that traded their stock during the period 1998 to 2002. Large blockholders were found to exert a positive influence upon a firm`s valuation and performance, which validates the positive monitoring approach of large shareholders, but it was also found that this relationship is not monotonic, implying that when separation of control and ownership tends to increase, a negative effect is exerted on firm`s valuation. This paper also reports the first estimates of a survey of corporate governance practices conducted in 2004 for 43 Colombian non-financial companies. The corporate governance index`s (CGI) scores suggest that implementation of good governance in Colombian firms has been slow and poor, as measured by an index average that is below half the maximum attainable value. Regrettably, it was not possible to find any support to recent theories that predict a positive association between good governance practices -as measured by the CGI - and performance. At most, there exists a positive relationship for the sub-index, but the results were not statistically significant in general.

Corporate Governance and Firm Valuation in Colombia

This paper studies the separation of ownership and control of 108 listed companies in Colombia from 1996 to 2002, finding that voting rights are greater than cash flow rights because of indirect ownership across firms. The paper also examines the association of various ownership and control measures and separation ratios with a firm’s value and performance for the same sample of companies that traded their stock from 1998 to 2002. Large blockholders were found to exert a positive influence upon a firm’s valuation and performance, which validates the positive monitoring approach of large shareholders, but this relationship is not monotonic. The paper further reports results from a 2004 survey which suggests that Colombian firms have been slow to improve their corporate governance practices.

A firm-level analysis of ICT adoption in an emerging economy: evidence from the colombian manufacturing industries

This study examines ICT adoption among 3,759 Colombian manufacturing firms, and attemptsto identify the factors that are conducive to the adoption and usage of ICT at the firm level. Ourmajor findings are (i) that the adoption of a given information and communication technology isbetter facilitated when a firm is relatively large, has large human capital, engages in moreinnovative activities, and when a firm´s organizational structure is better aligned with the giventechnology; (ii) that positive associations between the key determinants and ICT adoptions aremore pronounced for small and medium-sized firms than for large ones, and (iii) that informationspillovers within industries is also a determinant of ICT adoptions by the firms.ICT adoption, Internet, Innovation, Organizational change

Reforma regulatoria energética en Europa: impacto de los cambios de control corporativo sobre el valor de las empresas

El proceso de desregulación del sector eléctrico en la Unión Europea generó acciones estratégicas de parte de las empresas del sector que han llevado al reordenamiento de su mercado de energía eléctrica. Una serie de fusiones y adquisiciones ocurrieron a raíz de ese proceso. Este trabajo investiga cómo la consecuente ola de fusiones y adquisiciones que se dio en la primera década de este siglo ha afectado el valor en bolsa de las empresas compradoras y adquiridas. Para este propósito, haciendo uso de la metodología de los estudios de acontecimiento y con técnicas econométricas de MCO, GARCH y SURE se encontró que las fusiones y adquisiciones presentaron un efecto positivo estadísticamente significativo sobre el precio de cotización en bolsa para la empresa objeto de compra (u opada), lo cual es consistente con estudios previos.The deregulation process of the European power sector generated strategic moves by the power companies leading to a complete reordering of the European electric market that brought out an upsurge of mergers and acquisitions. This paper researches how the following wave of mergers and acquisitions that took place in the 2000 impacted the market value for the acquiring and selling companies that took part of it. With this objective and making use of the event study methodology, and OLS, GARCH, and SURE econometric techniques, we found that mergers and acquisitions had a positive and significant effect on the average market price in public stock exchanges for the companies that were target which is consistent with previous studies

Uprolides N, O and P from the Panamanian Octocoral Eunicea succinea.

Three new diterpenes, uprolide N (1), uprolide O (2), uprolide P (3) and a known one, dolabellane (4), were isolated from the CH₂Cl₂-MeOH extract of the gorgonian octocoral Eunicea succinea, collected from Bocas del Toro, on the Caribbean coast of Panama. Their structures were determined using spectroscopic analyses, including 1D and 2D NMR and high-resolution mass spectrometry (HRMS) together with molecular modeling studies. Compounds 1-3 displayed anti-inflammatory properties by inhibiting production of Tumor Necrosis Factor (TNF) and Interleukin (IL)-6 induced by lipopolysaccharide (LPS) in murine macrophages

Internet and economic activity in Colombia, 2007-2011 : an analysis of municipalities and 23 main cities

Spanish version available in IDRC Digital Library: Internet y actividad económica en Colombia, 2007-2011 : un análisis a nivel de municipios y de las 23 principales ciudadesAvailability, access and use of broadband tends to generate direct benefits for families and businesses at a micro and macro level. However, in developing countries the real impact that broadband deployment may have on economic growth remains to be seen, as broadband becomes economically relevant only when there is a critical mass of diffusion or adoption. Results of this study indicate a positive relationship between broadband and proxies for economic activity for three (3) different levels of download speed. The plan ‘Vive Digital’ addresses just one aspect of the policy measures needed to widen the impact of broadband in Colombia

Internet y actividad económica en Colombia, 2007-2011 : un análisis a nivel de municipios y de las 23 principales ciudades

Versión en inglés disponible en la Biblioteca Digital del IDRC: Internet and economic activity in Colombia, 2007-2011 : an analysis of municipalities and 23 main citiesLa importancia de la banda ancha como factor de desarrollo ha sido reciente tema de estudios. A nivel internacional, se ha encontrado que el acceso a banda ancha tiende a afectar de manera positiva el crecimiento económico o la actividad económica de un país. El presente estudio describe los patrones recientes del acceso de la banda ancha en Colombia, tanto a nivel de sus 23 principales ciudades como a nivel más general. Ejercicios econométricos buscaron determinar cómo la banda ancha e Internet afectan algunas variables económicas y la productividad en la industria manufacturera. Los resultados muestran una relación positiva entre banda ancha y las variables proxy de la actividad económica a tres diferentes niveles de velocidad de bajada. Aunque para algunas variables la sensibilidad de la variable económica a cambios porcentuales en la penetración de la banda ancha es relativamente baja, la evidencia encontrada permite espacio para la política pública, pero esta ha de complementarse con otras acciones de política. El Plan Vive Digital es solo uno de los aspectos que permitirían ampliar el impacto de la banda ancha

Population size influence on the efficiency of evolutionary algorithms to design water networks

[EN] The optimal sizing in water distribution networks (WDN) is of great interest because it allows the selection of alternative economical solutions that ensure design requirements at nodes (demands and pressure) and at lines (velocities). Among all the available design methodologies, this work analyzes those based on evolutionary algorithms (EAs). EAs are a combination of deterministic and random approaches, and the performance of the algorithm depends on the searching process. Each EA features specific parameters, and a proper calibration helps to reduce the randomness factor and improves the effectiveness of the search for minima. More specifically, the only common parameter to all techniques is the initial size of the random population (P). It is well known that population size should be large enough to guarantee the diversity of solutions and must grow with the number of decision variables. However, the larger the population size, the slower the convergence process. This work attempts to determine the population size that yields better solutions in less time. In order to get that, the work applies a method based on the concept of efficiency (E) of an algorithm. This efficiency relates the quality of the obtained solution with the computational effort that every EA requires to find the final design solution. This ratio E also represents an objective indicator to compare the performance of different algorithms applied to WDN optimization. The proposed methodology is applied to the pipe-sizing problem of three medium-sized benchmark networks, such as Hanoi, New York Tunnel and GoYang networks. Thus, from the currently available algorithms, this work includes evolutionary methodologies based on a Pseudo-Genetic Algorithm (PGA), Particle Swarm Optimization (PSO) and Harmony Search (HS). First, the different algorithm parameters for each network are calibrated. The values used for every EA are those that have been calculated in previous works. Secondly, specific parameters remain constant and the population size is modified. After more than 500,000 simulations, the influence of the population size is statistically analyzed in the final solutions. Finally, the efficiency was analyzed for each network and algorithm. The results ensure the best possible configuration based on the quality of the solutions and the convergence speed of the algorithm, depending of the population size.Mora-Melia, D.; Martínez-Solano, FJ.; Iglesias Rey, PL.; Gutiérrez-Bahamondes, JH. (2017). Population size influence on the efficiency of evolutionary algorithms to design water networks. Procedia Engineering. 186:341-348. doi:10.1016/j.proeng.2017.03.209S34134818