Vol. 27 No. 49 (2014), Artículos
Vol. 27 No. 49 (2014)

The impact of institutional ownership of Pension Fund Administrators on dividend policy: Evidence for Chile

Artículos
Published 2014-12-01
Werner Kristjanpoller Rodríguez
Universidad Técnica Federico Santa María
Javiera Silva Arroyo
Universidad Técnica Federico Santa María
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Keywords

institutional ownership
dividends
Chile
pension Fund administrators

How to Cite

Kristjanpoller Rodríguez, W., & Silva Arroyo, J. (2014). The impact of institutional ownership of Pension Fund Administrators on dividend policy: Evidence for Chile. Cuadernos De Administración, 27(49), 11-36. https://doi.org/10.11144/Javeriana.cao27-49.ipia
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Abstract

The goal of this paper is to determine the effect of the Chilean Pension Fund Administrator (PFA) ownership in to the dividend policy of the firms where they invest, through a panel data analysis. The results show a positive linear and no linear relationship between the PFA and the dividend policy, measured by the dividend yield. Also, it is found a selection bias in this relationship, indicating that PFA’s prefer to invest in firms with higher dividends, implying that the AFP’s behave as prudent investor and support the institutional herding hypothesis.

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