Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/338293 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 11562
Version Description: 
This Version: October 2025
Publisher: 
Munich Society for the Promotion of Economic Research - CESifo GmbH, Munich
Abstract: 
Substantial amounts of British capital flowed to Latin America during the first era of globalisation. Companies financed by this capital were typically headquartered in the UK, but operated thousands of miles away. This paper asks how this geographic separation between governance and business activities affected the valuation of these firms. We find that the location of the headquarters played a more important role than the location of operations. Stock prices tended to fluctuate in line with other equities based in the UK, suggesting that they were still regarded as being, at least partially, British companies.
Subjects: 
Latin America
equity markets
portfolio investing
emerging markets
JEL: 
F21
F54
F65
G11
G12
G15
G51
N16
N26
Document Type: 
Working Paper
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