Affiliation or non-affiliation: the impact of family-owned business groups on the Bogotá stock market, 1950-1980

This paper examines the impact of group affiliation on development Bogota’s stock market between 1950 and 1980. While literature business groups has discussed how they respond to failures, little attention been paid specific ways in which affects emerging economies. study aims fill this gap by analyzing panel data from implementing a series correlated random effects regressions. The findings demonstrate that had significant weighted capitalization stocks issued listed companies. Specifically, high trading volumes were concentrated small subset firms, suggesting group-affiliated companies able capture as means financing their investments increasing product geographic diversification. suggests typically arise absence developed capital market, our reveals different dynamic case Colombia, where these advocated for creation exchange. Hence, challenge misconception inefficient illiquid financial markets economies shed new light role driving development.