Tender Offers in South America: Do They Convey Good News to the Market?

Different studies in developed capital markets have found positive abnormal returns of at least 15% during the announcement date of a tender offer. Although there are almost no studies for South American stock markets, one study reported positive abnormal returns, ranging from 25% to 50%, related to...

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Detalles Bibliográficos
Autores principales: Darcy Fuenzalida, Samuel Mongrut, Mauricio Nash
Formato: Artículo científico
Publicado: Universidad Autónoma Metropolitana Unidad Azcapotzalco 2006
Materias:
Economía y Finanzas
tender offer
abnormal return
emerging market
Acceso en línea:http://www.redalyc.org/articulo.oa?id=41304810
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-022&d=41304810oai
Aporte de:
Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO) de Consejo Latinoamericano de Ciencias Sociales
id I16-R122-41304810oai
record_format dspace
institution Consejo Latinoamericano de Ciencias Sociales
institution_str I-16
repository_str R-122
collection Red de Bibliotecas Virtuales de Ciencias Sociales (CLACSO)
topic Economía y Finanzas
tender offer
abnormal return
emerging market
spellingShingle Economía y Finanzas
tender offer
abnormal return
emerging market
Darcy Fuenzalida
Samuel Mongrut
Mauricio Nash
Tender Offers in South America: Do They Convey Good News to the Market?
topic_facet Economía y Finanzas
tender offer
abnormal return
emerging market
description Different studies in developed capital markets have found positive abnormal returns of at least 15% during the announcement date of a tender offer. Although there are almost no studies for South American stock markets, one study reported positive abnormal returns, ranging from 25% to 50%, related to the announcement of the first tender offer. This study argues that estimated positive abnormal returns in emerging markets are high because studies have assumed a completely segmented capital market by applying the market model with a local stock market index. By allowing for partial integration among five South American emerging markets, one shows that there are in fact positive abnormal returns previously, during, and after the announcement date of the first tender offer. However, the positive abnormal return associated to the announcement date is around 8%. A slightly higher abnormal return is obtained using a market model that accounts for partial integration and downside risk. These results prompt towards a lower positive abnormal return in the sample of South American firms studied
format Artículo científico
Artículo científico
author Darcy Fuenzalida
Samuel Mongrut
Mauricio Nash
author_facet Darcy Fuenzalida
Samuel Mongrut
Mauricio Nash
author_sort Darcy Fuenzalida
title Tender Offers in South America: Do They Convey Good News to the Market?
title_short Tender Offers in South America: Do They Convey Good News to the Market?
title_full Tender Offers in South America: Do They Convey Good News to the Market?
title_fullStr Tender Offers in South America: Do They Convey Good News to the Market?
title_full_unstemmed Tender Offers in South America: Do They Convey Good News to the Market?
title_sort tender offers in south america: do they convey good news to the market?
publisher Universidad Autónoma Metropolitana Unidad Azcapotzalco
publishDate 2006
url http://www.redalyc.org/articulo.oa?id=41304810
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-022&d=41304810oai
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