Understanding Control Rights and Private Benefits in Chilean Firms

This presentation explores the relationship between 'wedge' and pension fund activism (PBC) within the context of Chile's 2001 MBR reform, analyzing its impact on corporate ownership and governance. It delves into theoretical frameworks on control-cash flow rights, utilizes empirical data from 107 firms (2000-2007), and employs probit models to uncover trends like the inverted U-shaped relation between wedge and PBC. The findings contribute valuable insights into monitoring mechanisms,...