This paper studies the apparent lack of value creation by Chilean equity mutual funds, emphasizing the role of their "investment styles" (obtained by combining multiple equity and fixed-income benchmarks, using Sharpe's (1992) technique) and their determinants. We also search for evidence...

In this paper we ask whether corporate governance practices at the firm level within a single country affect these firms` market valuation. This question is crucial in assessing the potential benefits for firms of changing their own practices, even though they cannot affect their country`s...

We study optimal portfolios for defined contribution (possibly mandatory) pension systems, which maximize expected pensions subject to a risk level. By explicitly considering the present value of future individual contributions and changing the risk-return numeraire to future pension units we...

We document the effects that three different types of events: i) corporate scandals ii) hard legal reforms, and iii) soft legal reforms, have had on the Chilean market for corporate directors between 2008 and 2019. Like the effects generated by the sequence Enron-Worldcom-SOX, we find that the...

We introduce a model that describes the evolution of compliance with corporate governance practices regulated by comply or explain (‘CorE’) standards. We show that a practice’s compliance level evolves as a diffusion process, which converges to the practice efficacy level. The model allows...