Pension Reform And Corporate Governance: Impact In Chile
The influence of Chilean pension fund management organizations (AFPs) on corporate governance has been shaped by regulations and by three characteristics of the local market, namely: lack of liquidity; high ownership concentration; and high visibility of AFP investment decisions. AFPs began to invest in stocks in 1985, and have behaved since as active shareholders. Pension fund participation in the stock market has had positive effects on corporate governance: 1) The number of independent board members has increased. 2) Monitoring costs have decreased as a result of improved public information quality. 3) Companies where pension funds have invested are under close public scrutiny. 4) Shareholder meetings are becoming more relevant. 5) Bondholder protection has also improved. Capital market growth has also had positive consequences on corporate governance. Economies of scale have made possible a new research industry, which has helped to reduce information costs. Also, market financing has become more attractive for firms. Capital market regulation has also improved and risk-rating procedures and conflict of interests regulations have been introduced in the legislation. All these changes have widened the investor base. However, other regulations and some ambiguities in the legislation impede pension funds to better monitor corporations, other than participating in shareholder meetings.
Volume (Year): 3 (2000)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://eacc10.puc.cl/RePEc/pch/|
More information through EDIRC
|Order Information:|| Email: |
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.:
- Eduardo Walker & Fernando Lefort, 2002.
"Pension Reform And Capital Markets: Are There Any (Hard) Links?,"
Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 5(2), pages 77-149.
- Walker, Eduardo & Lefort, Fernando, 2002. "Pension reform and capital markets : are there any (hard) links?," Social Protection and Labor Policy and Technical Notes 24082, The World Bank.
- David Backus & Patrick Kehoe & Finn E. Kydland, 1992. "Web interface for "Dynamics of the Trade Balance and the Terms of Trade: The J-Curve?"," QM&RBC Codes 5a, Quantitative Macroeconomics & Real Business Cycles.
- Robert Holzmann, 1997. "Pension Reform, Financial Market Development, and Economic Growth: Preliminary Evidence from Chile," IMF Staff Papers, Palgrave Macmillan, vol. 44(2), pages 149-178, June.
- Robert Holzmann, 1996. "Pension Reform, Financial Market Development, and Economic Growth; Preliminary Evidence From Chile," IMF Working Papers 96/94, International Monetary Fund.
- Walker, Eduardo*Lefort, Fernando, 2002. "Pension reform and capital markets : are there any (hard) links?," Policy Research Working Paper Series 24082, The World Bank.
- Vittas, Dimitri & Michelitsch, Roland, 1995. "Pension funds in Central Europe and Russia : their prospects and potential role in corporate governance," Policy Research Working Paper Series 1459, The World Bank. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:pch:abante:v:3:y:2000:i:1:p:109-141. 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: (Gimena Pardo)
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.