
Contents
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14.1 Introduction 14.1 Introduction
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14.2 Emergence and long‐term evolution of business groups in Chile 14.2 Emergence and long‐term evolution of business groups in Chile
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14.2.1 General background 14.2.1 General background
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14.2.2 Historical background 14.2.2 Historical background
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14.2.3 The main Chilean business groups in 2008 14.2.3 The main Chilean business groups in 2008
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14.3 Governance and control structures of Chilean business groups 14.3 Governance and control structures of Chilean business groups
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14.3.1 Control mechanisms 14.3.1 Control mechanisms
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14.3.1.1 Pyramids 14.3.1.1 Pyramids
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14.3.1.2 Boards 14.3.1.2 Boards
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14.3.1.3 Strategic decisions 14.3.1.3 Strategic decisions
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14.3.2 Capital and ownership structures 14.3.2 Capital and ownership structures
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14.3.3 Impact of control structures on company valuation 14.3.3 Impact of control structures on company valuation
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14.4 Strategy and structure of main Chilean business groups 14.4 Strategy and structure of main Chilean business groups
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14.4.1 Main areas of economic activity 14.4.1 Main areas of economic activity
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14.4.2 Competitive capabilities of Chilean business groups 14.4.2 Competitive capabilities of Chilean business groups
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14.4.2.1 Exploiting natural resources 14.4.2.1 Exploiting natural resources
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14.4.2.2 Retail and distribution of commercial products 14.4.2.2 Retail and distribution of commercial products
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14.4.2.3 Multinational companies 14.4.2.3 Multinational companies
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14.4.3 International expansion strategies of Chilean business groups 14.4.3 International expansion strategies of Chilean business groups
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14.4.4 Reorganization through holding companies 14.4.4 Reorganization through holding companies
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14.5 Conclusions 14.5 Conclusions
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References References
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14 Business Groups in Chile
Get accessFernando Lefort is Professor and Dean of the Facultad de Economía y Negocios, Universidad Diego Portales, Chile. He is also Executive Director of the Centro para el Gobierno de la Empresa, board Member of FASA Corporation and Vicechairman of AFC, Chile. His main areas of research are corporate finance and corporate governance. He has published in several international academic journals. He is an international consultant on corporate governance and has participated, among other things, in the World Bank Report on Standards and Codes (ROSC) on Corporate Governance in Chile and in the OECD's White Paper on Corporate Governance in Latin America.
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Published:02 September 2010
Cite
Abstract
Chilean business groups tend to be structured as a collection of listed and non-listed companies presenting highly concentrated ownership and hanging under a listed holding company. These characteristic pyramidal structures are used to obtain funding from minority shareholders without losing control. Many of the large companies affiliated to Chilean business groups have traded in a relatively developed capital market with a considerable participation of institutional investors since 1986. Most Chilean business groups are relatively young and are successfully run by the second or third generation of the founding families. However, in some cases, control has passed to teams of executives and to foreign companies. This article looks at the main features of Chilean business groups and tries to find some stylized factors that help in an understanding of their dynamic evolution.
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