Institutional Investors and Long-Term Investment : Evidence from Chile

Opazo, Luis ; Raddatz, Claudio ; Schmukler, Sergio L.

World Bank, Washington, DC

关键词: AGENCY PROBLEMS;    ASSET CLASS;    ASSET CLASSES;    ASSET HOLDINGS;    ASSET MANAGERS;   

DOI  :  10.1596/1813-9450-6922
RP-ID  :  WPS6922

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Developing countries are trying todevelop long-term financial markets and institutionalinvestors are expected to play a key role. This paper usesunique evidence on the universe of institutional investorsfrom the leading case of Chile to study to what extentmutual funds, pension funds, and insurance companies holdand bid for long-term instruments, and which factors affecttheir choices. The paper uses monthly asset-level portfoliosto show that, despite the expectations, mutual and pensionfunds invest mostly in short-term assets relative toinsurance companies. The significant difference acrossmaturity structures is not driven by the supply side of debtor tactical behavior. Instead, it seems to be explained bymanager incentives (related to short-run monitoring and theliability structure) that, combined with risk factors, tiltportfolios toward short-term instruments, even whenlong-term investing yields higher returns. Thus, theexpansion of large institutional investors does notnecessarily imply longer-term markets.