Publication:
Institutional Investors and Long-Term Investment : Evidence from Chile

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dc.contributor.authorOpazo, Luis
dc.contributor.authorRaddatz, Claudio
dc.contributor.authorSchmukler, Sergio L.
dc.date.accessioned2014-06-25T20:25:31Z
dc.date.available2014-06-25T20:25:31Z
dc.date.issued2014-06
dc.description.abstractDeveloping countries are trying to develop long-term financial markets and institutional investors are expected to play a key role. This paper uses unique evidence on the universe of institutional investors from the leading case of Chile to study to what extent mutual funds, pension funds, and insurance companies hold and bid for long-term instruments, and which factors affect their choices. The paper uses monthly asset-level portfolios to show that, despite the expectations, mutual and pension funds invest mostly in short-term assets relative to insurance companies. The significant difference across maturity structures is not driven by the supply side of debt or tactical behavior. Instead, it seems to be explained by manager incentives (related to short-run monitoring and the liability structure) that, combined with risk factors, tilt portfolios toward short-term instruments, even when long-term investing yields higher returns. Thus, the expansion of large institutional investors does not necessarily imply longer-term markets.en
dc.identifierhttp://documents.worldbank.org/curated/en/2014/06/19680163/institutional-investors-long-term-investment-evidence-chile
dc.identifier.doi10.1596/1813-9450-6922
dc.identifier.urihttps://hdl.handle.net/10986/18756
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6922
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGENCY PROBLEMS
dc.subjectASSET CLASS
dc.subjectASSET CLASSES
dc.subjectASSET HOLDINGS
dc.subjectASSET MANAGERS
dc.subjectASSET PRICES
dc.subjectASSET VALUES
dc.subjectASSET-LIABILITY MISMATCH
dc.subjectASYMMETRIC INFORMATION
dc.subjectAUCTION
dc.subjectAUCTION AMOUNT
dc.subjectAUCTIONS
dc.subjectBANK DEPOSITS
dc.subjectBANK POLICY
dc.subjectBANKING SECTOR
dc.subjectBANKING SYSTEM
dc.subjectBID
dc.subjectBIDS
dc.subjectBOND
dc.subjectBOND AUCTIONS
dc.subjectBOND FUNDS
dc.subjectBOND INDEX
dc.subjectBOND INDICES
dc.subjectBOND MARKETS
dc.subjectBORROWER
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL MARKET DEVELOPMENT
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL REQUIREMENT
dc.subjectCASH FLOWS
dc.subjectCENTRAL BANK
dc.subjectCONTRACTUAL SAVINGS
dc.subjectCONTRACTUAL SAVINGS INSTITUTIONS
dc.subjectCORPORATE BOND
dc.subjectCORPORATE BOND MARKET
dc.subjectCORPORATE BONDS
dc.subjectCORPORATE DEBT
dc.subjectCORPORATE INVESTMENT
dc.subjectDEBT
dc.subjectDEBT HOLDINGS
dc.subjectDEBT ISSUANCES
dc.subjectDEBT MATURITIES
dc.subjectDEBT MATURITY
dc.subjectDEBTORS
dc.subjectDEFAULT RISK
dc.subjectDERIVATIVES
dc.subjectDERIVATIVES MARKETS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDISCLOSURE REQUIREMENTS
dc.subjectDOLLAR BONDS
dc.subjectDOMESTIC INSTITUTIONAL INVESTORS
dc.subjectDOMESTIC MARKET
dc.subjectEMERGING ECONOMIES
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKET DEBT
dc.subjectEMERGING MARKETS
dc.subjectEQUITIES
dc.subjectEQUITY HOLDING
dc.subjectEQUITY INSTRUMENTS
dc.subjectEXCHANGE RATES
dc.subjectFAIR VALUE
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFIDUCIARY RESPONSIBILITY
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL FRAGILITY
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL STABILITY
dc.subjectFINANCIAL STUDIES
dc.subjectFINANCIAL SUPPORT
dc.subjectFINANCIAL SYSTEM
dc.subjectFIXED INCOME
dc.subjectFIXED INCOME INVESTMENT
dc.subjectFIXED INCOME MARKET
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN INVESTMENT
dc.subjectFUND MANAGERS
dc.subjectGLOBAL DEVELOPMENT FINANCE
dc.subjectGOVERNMENT BOND
dc.subjectGOVERNMENT BONDS
dc.subjectGOVERNMENT DEBT
dc.subjectGOVERNMENT PAPER
dc.subjectHOLDINGS
dc.subjectHOLDINGS OF BANK
dc.subjectINDEXED BONDS
dc.subjectINFLATION
dc.subjectINFLATION RISK
dc.subjectINFLATION RISKS
dc.subjectINSTITUTIONAL INVESTOR
dc.subjectINSTITUTIONAL INVESTORS
dc.subjectINSURANCE
dc.subjectINSURANCE COMPANIES
dc.subjectINTEREST RATE
dc.subjectINTEREST RATE DERIVATIVES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL DIVERSIFICATION
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL FINANCIAL MARKETS
dc.subjectINTERNATIONAL PORTFOLIO
dc.subjectINTERNATIONAL SETTLEMENTS
dc.subjectINVESTING
dc.subjectINVESTMENT BEHAVIOR
dc.subjectINVESTMENT HORIZON
dc.subjectINVESTMENT HORIZONS
dc.subjectINVESTMENT INSTRUMENTS
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectINVESTMENT PORTFOLIO
dc.subjectINVESTMENTS IN EQUITY
dc.subjectINVESTOR BASE
dc.subjectINVESTOR DEMAND
dc.subjectINVESTOR REDEMPTIONS
dc.subjectISSUANCE
dc.subjectISSUANCES
dc.subjectLEVEL OF CONFIDENCE
dc.subjectLIABILITY
dc.subjectLIFE INSURANCE
dc.subjectLIFE INSURANCE COMPANIES
dc.subjectLIFE INSURANCE COMPANY
dc.subjectLIQUID ASSETS
dc.subjectLIQUIDATIONS
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY CRISES
dc.subjectLIQUIDITY RATIO
dc.subjectLOCAL CURRENCY
dc.subjectLONG-TERM ASSETS
dc.subjectLONG-TERM CAPITAL
dc.subjectLONG-TERM DEBT
dc.subjectLONG-TERM DEBT MARKET
dc.subjectLONG-TERM FINANCE
dc.subjectLONG-TERM INSTRUMENTS
dc.subjectLONG-TERM INVESTMENT
dc.subjectLONG-TERM INVESTMENTS
dc.subjectLONG-TERM INVESTORS
dc.subjectLONG-TERM LIABILITIES
dc.subjectLONG-TERM PAPER
dc.subjectMARK TO MARKET
dc.subjectMARK-TO-MARKET
dc.subjectMARK-TO-MARKET ACCOUNTING
dc.subjectMARKET CONDITIONS
dc.subjectMARKET LIQUIDITY
dc.subjectMARKET MECHANISM
dc.subjectMARKET PARTICIPANTS
dc.subjectMARKET PLAYERS
dc.subjectMARKET PRICES
dc.subjectMATURITIES
dc.subjectMATURITY
dc.subjectMATURITY DATE
dc.subjectMATURITY SPECTRUM
dc.subjectMATURITY STRUCTURE
dc.subjectMATURITY STRUCTURES
dc.subjectMONETARY POLICY
dc.subjectMONEY MARKET
dc.subjectMONEY MARKET INSTRUMENT
dc.subjectMORAL HAZARD
dc.subjectMORTGAGES
dc.subjectMUTUAL FUND
dc.subjectMUTUAL FUND INDUSTRY
dc.subjectMUTUAL FUND MANAGERS
dc.subjectMUTUAL FUNDS
dc.subjectOPEN-END FUNDS
dc.subjectOPPORTUNITY COST
dc.subjectOUTSTANDING DEBT
dc.subjectPENSION
dc.subjectPENSION FUND
dc.subjectPENSION FUNDS
dc.subjectPENSION REFORM
dc.subjectPENSION REFORMS
dc.subjectPENSION SYSTEM
dc.subjectPENSION SYSTEMS
dc.subjectPENSIONS
dc.subjectPORTFOLIO
dc.subjectPORTFOLIO CHOICE
dc.subjectPORTFOLIO HOLDINGS
dc.subjectPORTFOLIO INVESTMENTS
dc.subjectPORTFOLIO REGULATIONS
dc.subjectPORTFOLIOS
dc.subjectPRICE RISK
dc.subjectPRINCIPAL-AGENT PROBLEM
dc.subjectPRINCIPAL-AGENT PROBLEMS
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC SAVINGS
dc.subjectRATE OF RETURN
dc.subjectREGULATORY PRACTICES
dc.subjectRETAIL INVESTORS
dc.subjectRETIREMENT INCOME SECURITY
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectRISK AVERSION
dc.subjectRISK EXPOSURE
dc.subjectRISK FACTORS
dc.subjectRISK PROFILE
dc.subjectRISK PROFILES
dc.subjectSECURITIES
dc.subjectSECURITIES MARKETS
dc.subjectSHORT MATURITIES
dc.subjectSHORT MATURITY
dc.subjectSHORT-TERM ASSET
dc.subjectSHORT-TERM ASSETS
dc.subjectSHORT-TERM BONDS
dc.subjectSHORT-TERM DEBT
dc.subjectSHORT-TERM INSTRUMENTS
dc.subjectSOVEREIGN BONDS
dc.subjectSOVEREIGN DEBT
dc.subjectSTOCKS
dc.subjectTOTAL DEBT
dc.subjectTRADING
dc.subjectTRANCHE
dc.subjectTRANCHES
dc.subjectTRANSACTION
dc.subjectTRANSACTION COSTS
dc.subjectTRANSPARENCY
dc.subjectTREASURY
dc.subjectTURNOVER
dc.subjectTYPE OF INVESTOR
dc.subjectYIELD CURVE
dc.titleInstitutional Investors and Long-Term Investment : Evidence from Chileen
dspace.entity.typePublication
okr.crossref.titleInstitutional Investors and Long-Term Investment: Evidence from Chile
okr.date.disclosure2014-06-01
okr.date.doiregistration2025-04-10T10:27:05.016495Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2014/06/19680163/institutional-investors-long-term-investment-evidence-chile
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid781371468010917283
okr.identifier.doi10.1596/1813-9450-6922
okr.identifier.externaldocumentum000158349_20140616101330
okr.identifier.internaldocumentum19680163
okr.identifier.reportWPS6922
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/06/16/000158349_20140616101330/Rendered/PDF/WPS6922.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.countryChile
okr.sectorFinance :: General finance sector
okr.themeMicro, Small and Medium Enterprise support
okr.themeFinancial and private sector development
okr.topicFinance and Financial Sector Development::Deposit Insurance
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Mutual Funds
okr.topicFinance and Financial Sector Development::Non Bank Financial Institutions
okr.unitMacroeconomics and Growth Team, Development Research Group (DECMG)
okr.volume1 of 1
relation.isAuthorOfPublicationad1ad457-a974-53de-815c-c7010e0fdd74
relation.isAuthorOfPublication.latestForDiscoveryad1ad457-a974-53de-815c-c7010e0fdd74
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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