Corporate Governance Country Assessment : Chile

Corporate Governance Country Assessment : Chile

Chile's equity market is fairly large and successful. The market capitalization of the 249 listed firms represented 89 percent of GDP at year-end, 2001. Corporate ownership is concentrated and pyramid structures are common. Business groups/con...

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Bibliographic Details
Main Author:	World Bank
Format:	Corporate Governance Assessment (ROSC)
Language:	English en_US
Published:	Washington, DC 2013
Subjects:	ACCOUNTABILITY ADMINISTRATIVE FUNCTIONS ADMINISTRATIVE SANCTIONS ADVISORY SERVICES APPLICABLE LAWS ASSET VALUE ASSETS AUTHORIZATION BALANCE SHEET BOARD MEMBERS BOOK VALUE CAPITAL MARKET CAPITAL MARKETS CAPITAL STRUCTURE CASH FLOW CENTRAL BANK CLASSES OF SHARES COMPANIES COMPANY COMPANY EXECUTIVES COMPANY PERFORMANCE CONFLICTS OF INTEREST CONGLOMERATES CONNECTED PARTIES CONSENSUS CONSTITUTION CONTROL CORPORATE CONTROL CORPORATE GOVERNANCE CORPORATE OWNERSHIP CORPORATE PERFORMANCE CORPORATE STRATEGY CORPORATE STRUCTURE CORPORATION CORPORATIONS COURT SYSTEM DECREE DECREES DEGREE OF CONTROL DISCLOSURE DISCLOSURE REQUIREMENTS DIVIDENDS DUE DILIGENCE ENTREPRENEURS ENVIRONMENTAL LAW EXPENDITURES EXPROPRIATION EXTERNAL AUDITORS FINANCIAL CONTROL FINANCIAL HEALTH FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SITUATION FINANCIAL STATEMENTS FIRM SIZE FIRMS FIXED CAPITAL FOREIGN INVESTMENTS FOREIGN MARKET FOREIGN SHAREHOLDERS HOLDING COMPANIES HOLDING COMPANY INSIDER ABUSE INSIDER DEALING INSIDER TRADING INSOLVENCY INSTITUTIONAL FRAMEWORK INSTITUTIONAL INVESTORS INSURANCE COMPANIES INTERNATIONAL INVESTORS INTERNATIONAL STANDARDS INVESTMENT FUNDS INVESTOR RELATIONS JUDICIARY LABOR LEGISLATION LEGAL FRAMEWORK LEGAL SYSTEM LEGISLATION LEGISLATIVE CHANGES LEGISLATIVE REFORM LISTED LISTED COMPANIES MANAGEMENT COMPANIES MARKET CAPITALIZATION MARKET CONDITIONS MARKET PRICE MARKET PRICES MARKET VALUE MERGERS MINISTRY OF FINANCE MINORITY SHAREHOLDER MINORITY SHAREHOLDERS NET ASSET VALUE NET EARNINGS OUTSIDE SHAREHOLDERS OWNERSHIP CONCENTRATION PENSION FUND PENSION FUNDS PENSION SYSTEM PORTFOLIO PREEMPTIVE RIGHTS PRIVATE COMPANIES PRIVATE SECTOR PRIVATE SECTORS PROPERTY RIGHTS PUBLIC COMPANIES PUBLIC OFFER PYRAMID STRUCTURES RATE OF RETURN REGULATORY FRAMEWORK REPURCHASES RISK MANAGEMENT SALE PRICE SHARE OWNERSHIP SHAREHOLDER MEETINGS SHAREHOLDERS STAKEHOLDERS STATEMENTS STOCK EXCHANGE STRIKE PRICE TRANSACTIONS TRANSPARENCY VOTING VOTING SHARES
Online Access:	http://documents.worldbank.org/curated/en/2003/05/6561844/chile-report-observance-standards-codes-rosc-corporate-governance-country-assessment http://hdl.handle.net/10986/14493

Description
Summary:	Chile's equity market is fairly large and successful. The market capitalization of the 249 listed firms represented 89 percent of GDP at year-end, 2001. Corporate ownership is concentrated and pyramid structures are common. Business groups/conglomerates are the predominant corporate form. Institutional investors, especially pension funds, are active equity investors. The Securities Market Law and the Corporation Law form the legal framework governing the capital markets. The securities market is regulated by the Superintendence of Securities and Insurance (SVS). Overall, Chile scores well on the assessment on compliance with the OECD Principles, scoring "Observed" or "Largely Observed" for 14 of 23 Principles; no Principle is deemed "Not Observed." The policy recommendations may be grouped under three broad categories: legislative reform, institutional strengthening and voluntary/private initiatives. The report recommends further amending Corporation Law and Securities Market Law to increase transparency for investors; having more transparency in and accountability of the SVS; increasing resources for the SVS to strengthen its ability to conduct market surveillance; and preparing a road map to improve the general enforcement of investor property rights. Finally, the report proposes creating an Institute of Directors to provide training for supervisory board members, disseminate best practice, and promote dialogue between the public and private sectors.