Chilean pension fund managers and corporate governance: The impact on corporate debt

Jara, Mauricio; López‐Iturriaga, Félix J.; Martín, Pablo San; Saona, Paolo; Tenderini, Giannina

doi:10.1016/j.najef.2019.02.012

Cited by 17 publications

(12 citation statements)

References 62 publications

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“…The current corporate governance framework in Chile goes back to 1981 when two laws were enacted: The Corporations Law and The Securities Market Law, which were amended several times (Jara et al, 2019). The new Corporate Governance Law was signed on October 2009.…”

Section: Chile and Spain As Comparable Institutional Contextsmentioning

confidence: 99%

“…Likewise, the Chilean pension system is managed by private companies called pension fund administrators (AFPs by its acronym in Spanish) who are important institutional investors in the financial market. These pension managers act not only as bondholders but also as shareholders, with the ability to appoint a director to the board of directors (Jara, L opez-Iturriaga, San Mart ın, Saona, & Tenderini, 2019). Hence, these pension managers as institutional investors play a major role in the governance systems of Chilean companies.…”

Section: Introductionmentioning

confidence: 99%

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Ibero-American corporate ownership and boards of directors: implementation and impact on firm value in Chile and Spain

Saona

Muro

Martín

et al. 2020

Economic Research-Ekonomska Istraživanja

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From a corporate governance point of view, this paper addresses the question of how corporate ownership and board characteristics influence firm value for a sample of Ibero-American companies. Specifically, we analyse indexed non-financial companies from Chile and Spain for the period 2007-2016, using the GMM panel data technique. Our research is novel in considering a twocountry approach, with one emerging and one developed country, and in analysing how corporate ownership and board characteristics, in addition to contextual variables, determine firm value. Our results assess the efficiency of corporate governance mechanisms. Although findings are intriguing regarding ownership concentration, they confirm the benefits of a good board of directors. This type of board is characterised by a large size, sufficiently independent directors, and a balance in terms of gender diversity. We provide several policy recommendations from our main findings.

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Section: Chile and Spain As Comparable Institutional Contextsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Ibero-American corporate ownership and boards of directors: implementation and impact on firm value in Chile and Spain

Saona

Muro

Martín

et al. 2020

Economic Research-Ekonomska Istraživanja

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“…In the context of the Latin American corporate sector, it is much more plausible that institutional investors would be dedicated or long-term oriented than transient for several reasons. According to Jara et al (2019), institutional investors in Latin America have been the more influential and largest minority investors that contributed to the development of the capital markets and the enhancement of corporate governance systems. Similarly, Elyasiani, et al (2010) emphasised that institutional investors reduce asymmetries of information in the firms in which they participate.…”

Section: Ownership Structure Features and Real Activities Manipulationmentioning

confidence: 99%

“…Similarly, Elyasiani, et al (2010) emphasised that institutional investors reduce asymmetries of information in the firms in which they participate. Moreover, the voice monitoring of dedicated institutional investors has become less costly over the past few decades in Latin America as a consequence of their capacity for collective actions (Jara, L opez, & L opez-de-Foronda, 2012); whilst the exit policy of transient institutional investors has been increasingly costly given the substantial discounts when liquidating their portfolios (Jara et al, 2019). As an example, specifically in the case of Chile, according to Fern andez (2014), independent institutional investors played a key role as external monitors by spending resources and time supervising the governance and quality of decisions of companies they invest in.…”

Section: Ownership Structure Features and Real Activities Manipulationmentioning

confidence: 99%

Real earnings management and corporate governance: a study of Latin America

Mellado

Saona

2019

Economic Research-Ekonomska Istraživanja

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This article analyses the impact of ownership structure features and institutional settings on real activities manipulation. The analysis is based on a sample of listed companies in the underexplored Latin American market for the period of 2004-2016. Paneldata-based G.M.M. System Estimation is used in the empirical analysis. The results confirm that the monitoring role of the majority owner is crucial in mitigating managerial opportunistic behaviour. Here, opportunistic behaviour refers to engaging in real activities manipulation that reduces the informative content of financial statements. However, analysis of insider ownership revealed that managers had a negative impact on transparency. We observed that as insider ownership increases, managers engage more actively in real earnings management. We also find that the institutional ownership and the quality of the regulatory system proved to be effective mechanisms in reducing real activities manipulation. ARTICLE HISTORY

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“…Ademais, é importante ressaltar o papel social que os fundos de pensão possuem. Eles representam um investidor institucional importante para o mercado financeiro (ALDA, 2018;JARA et al, 2019), bem como uma fonte crucial de renda futura para os beneficiários a eles vinculados, particularmente para aqueles que são investidores não profissionais (ALDA, 2018). Os participantes dos fundos de pensão esperam uma remuneração segura e confiam na gestão destas entidades para que esse rendimento futuro seja garantido (GONZÁLEZ; LELYVELD; LUCIVJANSKÁ, 2020).…”

Section: Introductionunclassified

Análise das variáveis que afetam o desempenho de carteira das entidades fechadas de previdência complementar brasileiras

Silva¹,

Malaquias²,

Rech

2020

R. Contemp. Contab.

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O estudo investigou as variáveis que afetam o desempenho da carteira de investimento das Entidades Fechadas de Previdência Complementar (EFPC) no Brasil. Para alcançar o objetivo foi analisado o Índice de Sharpe de 310 EFPC brasileiras entre o período de 2011 a 2018. Na primeira etapa foram analisadas as variáveis Tamanho, Número de Participantes Ativos, Idade, Taxa Administrativa, Taxa de Carregamento, Diversificação e Risco. Na segunda etapa, as variáveis Taxa Administrativa e Taxa de Carregamento foram excluídas dos testes, em função do elevado número de missing values. Com base nos resultados constatou-se que, em média, o desempenho das EFPC no período foi positivo em relação ao benchmark. Entretanto, o prêmio pelo risco médio anual apresentou valores negativos durante alguns períodos. Na análise do efeito das variáveis, observou-se indícios de que a Idade, a Diversificação, o Risco e a Taxa Administrativa afetam o desempenho das EFPC. Por um lado, os resultados sugerem que a diversificação apresentou relação positiva com a performance ajustada ao risco; por outro lado, entidades que assumiram maiores riscos em períodos com menor remuneração dos títulos do governo tenderam a apresentar menor retorno ajustado ao risco. Tais resultados sugerem que as variáveis que afetam o desempenho apresentam efeitos diversos, o que passa a depender da necessidade das EFPC frente às suas metas atuariais.

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Chilean pension fund managers and corporate governance: The impact on corporate debt

Cited by 17 publications

References 62 publications

Ibero-American corporate ownership and boards of directors: implementation and impact on firm value in Chile and Spain

Ibero-American corporate ownership and boards of directors: implementation and impact on firm value in Chile and Spain

Real earnings management and corporate governance: a study of Latin America

Análise das variáveis que afetam o desempenho de carteira das entidades fechadas de previdência complementar brasileiras

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