Corporate Governance and Pension Fund Administrators. The Chilean Case
Abstract
The proper functioning of corporate governance has a positive impact on the competitiveness and growth of an economy. The characteristics of the capital markets influence th structure of established companies’ problems with agency,by determining the different models and corporate governance requirements that are enacted in these markets. The objective of the study is to analyze the impact of the individual capitalization pension system in corporate governance practices by studying the Chilean case. It is observed that the establishment of private pension funds positively affects the quality of corporate governance. This effect is produced by different mechanisms: i) indirectly, by expanding the capital markets and financial resources; ii) directly, by increasing the demands exerted by pension fund administrators (PFAs) on firms that they have resources invested in, iii) and by influencing public institutions and regulatory framework that affects corporate governance.We identify specific cases where the active participation of PFAs have in turn led to the establishment or improvement of legislation. In particular, the paper reviews the details of the Fasa S.A. case, whose board was a public failure,but lead to the enactment of the 2009 Law on Corporate Governance and Independent Directors.Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.Bibliographic Info
Paper provided by BBVA Bank, Economic Research Department in its series Working Papers with number 1006.Length: 39 pages
Date of creation: Apr 2010
Date of revision:
Handle: RePEc:bbv:wpaper:1006
Contact details of provider:
Web page: http://serviciodeestudios.bbva.com/
More information through EDIRC
Related research
Keywords:This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-17 (All new papers)
References
No references listed on IDEASYou can help add them by filling out this form.
Citations
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:bbv:wpaper:1006For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (MARIA VICTORIA ESCOLAR POLO).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.