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Using a set of publicly listed European firms, our findings suggest a positive (negative) association of NCIs with parent companies\u2019 share prices in countries with low (high) levels of investor protection. We interpret the findings as evidence that when non-controlling investors are not well-protected, parent companies have an opportunity to extract rents from non-controlling owners, leading to a positive valuation of NCIs\u2019 equity. However, in countries where non-controlling investors are well-protected, parent companies are not able to extract rents but still must monitor and govern the related subsidiary; thus, NCIs become a net cost, and the relation inverts. <\/jats:p><jats:p> JEL Classification: M41, M48 <\/jats:p>","DOI":"10.1177\/0312896219896388","type":"journal-article","created":{"date-parts":[[2020,1,7]],"date-time":"2020-01-07T11:16:19Z","timestamp":1578395779000},"page":"24-50","update-policy":"https:\/\/doi.org\/10.1177\/sage-journals-update-policy","source":"Crossref","is-referenced-by-count":0,"title":["Is the relation between non-controlling interests and parent companies misleading?"],"prefix":"10.1177","volume":"46","author":[{"ORCID":"https:\/\/orcid.org\/0000-0002-6202-6156","authenticated-orcid":false,"given":"Ana Isabel","family":"Lopes","sequence":"first","affiliation":[]},{"given":"Isabel Costa","family":"Louren\u00e7o","sequence":"additional","affiliation":[{"name":"Business Research 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