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Governance And Ownership Structure In Chilean Economic Groups

Author

Listed:
  • NICOLÁS MAJLUF

    () (Escuela de Ingenieria, Pontificia Universidad Católica de Chile)

  • NUREYA ABARCA

    () (Escuela de Administración, Pontificia Universidad Católica de Chile)

  • DARÍO RODRÍGUEZ

    () (Instituto de Psciologia, Pontificia Universidad Católica de Chile)

  • LUIS ARTURO FUENTES

Abstract

The purpose of this paper is to present a descriptive analysis of economic groups in Chile. It classifies the economic groups operating in the country, according to their ownership and governance patterns, describing typical ownership structures and concentration. From a governance perspective, groups in Chile are multi-layered structures. Some additional characteristics of groups are provided: i.e. diversification, size, ownership control and dispersion within the group, boards interlocking, and foreign participation in joint ventures with local groups. The Chilean structuring of groups is partly compared with the solutions implemented in Japan, Germany, England and the United States.

Suggested Citation

  • 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.
  • Handle: RePEc:pch:abante:v:1:y:1998:i:1:p:111-139
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    File URL: http://eacc10.puc.cl/files/ABT/Contenidos/Vol-1-N1/5.%20Nureya.pdf
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    References listed on IDEAS

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    1. La Porta, Rafael & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1997. " Legal Determinants of External Finance," Journal of Finance, American Finance Association, vol. 52(3), pages 1131-1150, July.
    2. Leff, Nathaniel H, 1978. "Industrial Organization and Entrepreneurship in the Developing Countries: The Economic Groups," Economic Development and Cultural Change, University of Chicago Press, vol. 26(4), pages 661-675, July.
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    5. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. San Martín, Pablo & Saona, Paolo, 2017. "Capital structure in the Chilean corporate sector: Revisiting the stylized facts," Research in International Business and Finance, Elsevier, vol. 40(C), pages 163-174.
    2. Gutierrez, Luis H. & Pombo, Carlos & Taborda, Rodrigo, 2008. "Ownership and control in Colombian corporations," The Quarterly Review of Economics and Finance, Elsevier, vol. 48(1), pages 22-47, February.
    3. Jorge Tarziján M, 1999. "Internal Capital Markets And Multimarket Contact As Explanations For Conglomerates In Emerging Markets," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 2(1), pages 3-22.
    4. Alves, Paulo & Ferreira, Miguel, 2008. "Who Owns the Largest Firms Around the World?," MPRA Paper 52355, University Library of Munich, Germany.
    5. Fernando Lefort & Eduardo Walker, 2005. "El efecto de las prácticas de gobierno corporativo sobre la valuación de mercado y políticas de pago de compañías chilenas," Research Department Publications 3211, Inter-American Development Bank, Research Department.
    6. Silva, Francisca & Majluf, Nicolas & Paredes, Ricardo D., 2006. "Family ties, interlocking directors and performance of business groups in emerging countries: The case of Chile," Journal of Business Research, Elsevier, vol. 59(3), pages 315-321, March.
    7. Erica Salvaj & Juan Pablo Couyoumdjian, 2016. "'Interlocked' business groups and the state in Chile (1970-2010)," Business History, Taylor & Francis Journals, vol. 58(1), pages 129-148, January.
    8. Manuel R. Agosin & Ernesto Pastén H., 2003. "Corporate Governance in Chile," Working Papers Central Bank of Chile 209, Central Bank of Chile.
    9. Stephanou, Constantinos, 2005. "Supervision of financial conglomerates : the case of Chile," Policy Research Working Paper Series 3553, The World Bank.
    10. Pablo Morán V, 2003. "Looking Back At The Controversy: Unexpected Wealth Effects Of A Transitory Clause," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 6(2), pages 117-147.
    11. repec:eee:ecofin:v:43:y:2018:i:c:p:158-168 is not listed on IDEAS
    12. Fernando Lefort & Eduardo Walker, 2005. "The Effect of Corporate Governance Practices on Company Market Valuation and Payout Policy in Chile," Research Department Publications 3210, Inter-American Development Bank, Research Department.
    13. Hyejun Kim & Jaeyong Song, 2017. "Filling institutional voids in emerging economies: The impact of capital market development and business groups on M&A deal abandonment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(3), pages 308-323, April.
    14. Laura T. Starks, 2000. "Corporate Governance And Institutional Investors: Implications For Latin America," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 2(2), pages 161-181.
    15. Valentín Azofra Palenzuea & Paolo Saona Hoffmann & Eleuterio Vallelado González, 2004. "Estructura De Propiedad Y Oportunidades De Crecimiento Como Determinantes Del Endeudamiento De Las Empresas Chilenas," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 7(2), pages 105-145.

    More about this item

    Keywords

    Corporate governance; Ownership; Structures; Emerging Markets; Chile;

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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