IDEAS home Printed from
   My bibliography  Save this paper

Corporate Governance and Pension Fund Administrators: The Chilean Case


  • Soledad Hormazabal


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.

Suggested Citation

  • Soledad Hormazabal, 2010. "Corporate Governance and Pension Fund Administrators: The Chilean Case," Working Papers 1006, BBVA Bank, Economic Research Department.
  • Handle: RePEc:bbv:wpaper:1006

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bbv:wpaper:1006. 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: (OSCAR DE LAS PENAS SANCHEZ-CARO). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.