Corporate governance in Chile

Abstract

This article presents a simple framework in order to describe and analyze different corporate governance mechanisms and their impact on the firm structures and performance. Specifically, this article discusses the role of legal and regulatory system in conditioning the development of different corporate governance structures. The paper emphasizes exogenous factors, such as regulations of capital markets, the specificities of the financial system, the ownership structure, and the role of banking system that may help governance practices in the Chilean economy. In this context, the article summarizes and discusses the growing literature on corporate governance and structure in Chile. © 2009 Nova Science Publishers, Inc. All rights reserved.