Conflict of interest between ownership and control and its impact on financial results of companies: Study applied to banks operating in Chile

Abstract

This research has as main objective to determine the existence of conflict of interest between ownership and control in the Chilean banking system. To achieve this goal a theoretical framework consisting of previous studies topic was conducted. One of the main motivations was to study this reality, because usually the objective sought by the investor moves away from the objective of the management of banks and the banking sector is also very important for the national economy. First a literature review to the agency theory and conflict of interest, where the problem was made. Subsequently different models of corporate governance guided by the principles set by the OECD were identified.

A diagnosis of corporate governance in Chile and conflict of interest was performed. Chilean Banking was described, detailing and supervision services rendered. The null hypothesis was raised and corresponded to the denial of the relationship between conflict of interest between ownership and control and economic performance.

Data according to the percentage of market share equal to or greater than 3% were filtered, as the main product considering the current accounts of individuals and profitability. He underwent survey to a group of managers and shareholders, which result was that there is a correlation between the variables, ie, those reporting banks have fewer conflicts of interest between ownership and control, demonstrated better economic results.