The Future of Business Groups in Emerging Markets: Long Run Evidence from Chile
Tarun Khanna
Harvard University - Strategy Unit
Krishna Palepu
Harvard University - Harvard Business School; Harvard University - David Rockefeller Center for Latin American Research; Harvard Business Review; NBER
December 1998
Abstract:
We demonstrate variation in the extent to which firms benefit from their affiliation with Chilean business groups in the 1988-1996 period. The net benefits of unrelated diversification are positive if group diversification exceeds a threshold level, though this threshold increases with time. We find evidence of non-diversification related group benefits, which atrophy over time. We conjecture that the evolution of institutional context alters the value creating potential of business groups, though it does so slowly.
Number of Pages in PDF File: 45
JEL Classification: L2, G3, P5
working papers series
Suggested Citation
Khanna, Tarun and Palepu, Krishna, The Future of Business Groups in Emerging Markets: Long Run Evidence from Chile (December 1998). Available at SSRN: http://ssrn.com/abstract=143491 or http://dx.doi.org/10.2139/ssrn.143491
