The Stock Exchange Law: Analysis of its Possible Consequences over Colombian Corporations

Universidad del Rosario Facultad de Economia, Borradores de Investigacion No. 86

24 Pages Posted: 29 Mar 2007

See all articles by Roberto Fortich

Roberto Fortich

Universidad Tecnologica de Bolivar Department of Finance and International Business - Instituto de Estudios para el Desarrollo (IDE)

Date Written: December 2005

Abstract

Law 964 of 2005 modifies the existent regulation on the management and investment of resources associated with the Colombian stock exchange. This paper makes notice on some possible effects derived from this law that might affect corporations in Colombia. Several previous reforms of the market are studied, preceded by a description of the configuration of property among Colombian corporations on the basis of recent methodological approaches (including La Porta, López-de-Silanes, Shleifer, and Vishny's research agenda). We conclude that given the particularities of the Colombian market, the new Stock Exchange Law may favor the growth of foreign investment funds with a Colombian portfolio, but it could also alter the incentive schemes by which corporations operate in Colombia.

Note: The downloadable document is in Spanish.

Keywords: Corporate Finance and Governance, Regulation, Stock Exchange, Colombia

JEL Classification: G38

Suggested Citation

Fortich, Roberto Carlos, The Stock Exchange Law: Analysis of its Possible Consequences over Colombian Corporations (December 2005). Universidad del Rosario Facultad de Economia, Borradores de Investigacion No. 86, Available at SSRN: https://ssrn.com/abstract=974961 or http://dx.doi.org/10.2139/ssrn.974961

Roberto Carlos Fortich (Contact Author)

Universidad Tecnologica de Bolivar Department of Finance and International Business - Instituto de Estudios para el Desarrollo (IDE) ( email )

Manga Cr 21 #25-92 Calle del Bouquet
Cartagena, Bolivar
Colombia
(5) 660 60 41 Ext. 491 (Phone)
(5) 660 43 17 (Fax)

HOME PAGE: http://www.unitecnologica.edu.co/finanzas/docentes

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
112
Abstract Views
1,316
Rank
486,190
PlumX Metrics