Advanced Search
MyIDEAS: Login

Corporate Governance in Chile

Contents:

Author Info

  • Manuel R. Agosin
  • Ernesto Pastén H.

Abstract

The purpose of this paper is to describe the main features of the Chilean corporate governance regime during the ‘90s and to evaluate how well it runs. According to the existing literature, Chile’s system can best be described as an “insider” one. Large groups organized in a pyramidal fashion typically control publicly traded companies. In spite of this, corporate governance discriminates moderately against small shareholders or outsiders (e.g. bondholders). Some of the reasons behind this are the monitoring role of some financial institutions, such as AFPs (pension fund managers), the insurance and banking regulation, and an active supervisory agency. However, since the onset of the 1997-98 world financial crisis, Chilean capital markets have been gloomy. Capital outflows from the region have not been the only cause, but also a number of large takeovers of domestic corporations by multinationals and some well publicized cases of rent extraction from minority parties are to blame. In an attempt to revive a flagging market, some vices in corporate practices have been corrected (partially) by the enacting of the so-called “Ley de OPA” (PTO law) in December 2000. This law is aimed at protecting of minority shareholders’ rights. The Chilean experience illustrates the importance of factors not usually considered in discussions on corporate governance for developing countries, such as regulated institutional investors and banking sector legislation.

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.
File URL: http://www.bcentral.cl/estudios/documentos-trabajo/pdf/dtbc209.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 209.

as in new window
Length:
Date of creation: May 2003
Date of revision:
Handle: RePEc:chb:bcchwp:209

Contact details of provider:
Postal: Casilla No967, Santiago
Phone: (562) 670 2000
Fax: (562) 698 4847
Web page: http://www.bcentral.cl/
More information through EDIRC

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Nicolás Majluf & Nureya Abarca & Darío Rodríguez & Luis Arturo Fuentes, 1998. "Governance And Ownership Structure In Chilean Economic Groups," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 1(1), pages 111-139.
  2. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
  3. Fernando Lefort & Eduardo Walker, 2000. "Ownership And Capital Structure Of Chilean Conglomerates:Facts And Hypotheses For Governance," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 3(1), pages 3-27.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Fernando Lefort, 2005. "Ownership Structure And Corporate Governance In Latin America," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 8(1), pages 55-84.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:chb:bcchwp:209. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio Sepulveda).

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.