Corporate Governing in Latin America: The Importance of Scandals to Institute Change

Acknowledgments
Praise for Corporate Governing in Latin America
Contents
Editors and Contributors
About the Editors
Contributors
List of Figures
List of Tables
1 Introduction - Innovations & Drawbacks in Evolving Governing Practices
1 Setting the Theoretical Scene
2 The Dilemmas
3 Attributes
4 Aims
5 What to Expect
References
2 Theoretical Framework
1 Literature Review
1.1 New Institutional Economics (NIE)
1.2 Resource Dependence Theory (RDT)
1.3 Institutional Theory (IT)
2 Corporate Governing Evolution in Emerging Markets
3 Main Findings: The Institutional Construction of Corporate Governing
References
Part I Regional Chapters
3 Corporate Scandals in Latin America and Their Impact on the Corporate Governing Environment
1 Argentina
1.1 Desarrollo de Acuerdos Comerciales S.A. (DACSA)
1.2 YPF S.A.
1.3 Benito Roggio E Hijos S.A.
1.4 Skanska
1.5 Vicentin SAIC
1.6 TGLT
1.7 Lessons from Argentina and Open Questions for Further Study
2 Brazil
2.1 Petrobras
2.2 Odebrecht
2.3 JBS
2.4 Grupo EBX
2.5 Brasil Resseguros (IRB)
2.6 AmBev
2.7 Lessons from Brazil and Open Questions for Further Research
3 Chile
3.1 ENDESA Chile (Chispas)
3.2 FASA
3.3 Pehuenche
3.4 Enersis
3.5 La Polar
3.6 SQM (Cascadas)
3.7 Lessons from Chile and Open Questions for Further Study
4 Colombia
4.1 InterBolsa
4.2 Estraval
4.3 Reficar
4.4 El Cartel de los Pañales
4.5 The Cement Cartel
4.6 SaludCoop
4.7 Lessons from Colombia and Open Questions for Further Study
5 Mexico
5.1 Homex
5.2 Banorte
5.3 AeroMéxico/Mexichem
5.4 OmniLife
5.5 OHL México
5.6 Exportadora De Sal (ESSA)
5.7 Lessons from Mexico and Open Questions for Further Study
6 Peru
6.1 Credicorp
6.2 Graña y Montero
6.3 Alicorp
6.4 Arca Continental | Lindley
6.5 Milpo
6.6 BAYER/Aventis
6.7 Lessons from Peru and Open Questions for Further Study
7 Conclusions on the Impact of Scandals on Corporate Governing Development in Latin America
7.1 First Cut Review of the “Top 6” Scandals in Each Country
7.2 As an Emerging Market, Why Latin America Might Offer Different Lessons
8 Conclusions
References
4 The Latin American Corporate Governing Landscape—Its Past, Present, and Future
1 A Brief Reference to Regulation, Self-Regulation Initiatives, and Investor Perspectives
1.1 The Compulsory Corporate Governance Regulation
1.2 The Voluntary Standards: The “Comply or Explain” Model
1.3 The New Corporate Governing “Influencers”: Institutional Investors
2 Three Milestones of Corporate Governing Evolution in Latin America
2.1 Where Does the Regional Corporate Governance Conversation Converge?
2.2 The Brazilian Experience: Novo Mercado
2.3 Governing Challenges for Latin American State-owned Enterprises
3 What’s Next? Some Guessing and Predictions
References
5 The Institutional Construction of Corporate Governing in Latin America
1 Latin American History
2 Chile as a Corporate Governing Trendsetter
3 Latin American Corporate Governing Evolution
3.1 Economic Institutional Logic (1989—onwards)
3.2 Social Institutional Logic (2011—onwards, Peaking in 2019)
4 Conclusions and Perspective of Latin American Corporate Governing Evolution
References
Part II Country Chapters
6 Argentina
1 Introduction
2 Organizational Roots of Corporate Management
3 The Legal Framework for Corporate Governance
4 A Chronological Account of Corporate Governance
5 Argentina as an Emerging Country for Emerging Corporate Governance
5.1 Corporate Governance and the Private Sector
5.2 Corporate Governing and the Public Sector
5.3 The Organizational Limits of Corporate Governance in Argentina
5.4 Corporate Governance Practices in Argentina: Non-political Mediated Initiatives
6 Analysis of Corporate Governing in Argentina: An Expert’s Word
7 Conclusion
References
7 Brazil
1 Introduction
2 The Economic and Institutional Context
3 The Ownership Structure of Brazilian Public Companies
4 Institutional Players
4.1 Brazil’s Securities and Exchange Commission (CVM)
4.2 B3
4.3 Institutional Investors
4.4 Association of Capital Market Investors and Brazilian Association of Public Companies
4.5 The Brazilian Corporate Governance Institute (IBGC)
5 Conclusion and Future Directions
References
8 Chile
1 Introduction
2 Main Characteristics of the Chilean Capital Market
2.1 Concentrated Ownership
2.2 Limited Liquidity
2.3 Pension Funds as Minority Shareholders
2.4 A Small State-Owned Enterprise Sector
3 The Evolution of Corporate Governing in Chile
3.1 Chispas and Other Notable Cases
Chispas
Farmacias Ahumada S.A.
La Polar
Cascadas
3.2 Chile’s Accession to the OECD
Independence in the Boardroom
Improvements of the Regulation on Related-Party Transactions (“RPT”)
Improvements in Information Disclosure
Shareholders Voting Process
External Audit Services
3.3 The Road to Enacting a Chilean Corporate Governance Code
3.4 Strengthening of the Chilean Securities Regulator
4 Corporate Governing Today
4.1 Legal Provisions
Listing Requirements
Corporate Governing Structures
4.2 Directors’ Duties and Liabilities
4.3 Board and Management Compensation
4.4 Shareholder Rights
4.5 Shareholder Actions
4.6 Mandatory Dividend Policy
4.7 Related-Party Transactions (RPTs)
4.8 Audit Provisions
4.9 Corporate Governance Code
5 The Future of Corporate Governance in Chile: Conclusion and Challenges
5.1 Corporate Governance as Part of the ESG Strategy and Disclosure Obligations
5.2 Discussion of the Board Composition
5.3 The Challenge of a Private Corporate Governance Code
References
9 Colombia
1 Introduction
2 Institutional and Regulatory Framework and Context
3 The Impact of Country Codes and Other Business Measurement Initiatives
4 From Internationalization to the Network Effects of Interlocking Boards
5 The Evolution of Good Corporate Governance Practices in Institutional Entrepreneurs
6 Summary and Conclusions
References
10 Mexico
1 Introduction
2 Corporate Governance in Family Businesses
3 The Legal Context
4 The Financial System
5 Corporate Governance in Listed Companies
6 The Code of Best Corporate Governance Practices
7 Conclusions
References
11 Peru
1 Introduction
1.1 The Approach
1.2 Methodology
2 Understanding the Context
2.1 Macroeconomic and Institutional Conditions
2.2 Regulatory Framework
3 Corporate Governing Evolution: Progress and Challenges
3.1 Code Compliance Evaluations
3.2 Ownership
3.3 Board Composition
3.4 Availability of Board Members
3.5 Board Engagement
3.6 Internationalization
3.7 Combining Factors
4 Final Remarks
References
Index