Tender offers in South America: Are abnormal returns really high?

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Autore principale: Samuel Mongrut
Natura: Artículo científico
Lingua:en
Pubblicazione: Universidad ICESI 2006
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author Samuel Mongrut
author_facet Samuel Mongrut
contents Tender offers in South America: Are abnormal returns really high? Samuel Mongrut Juan Tapia Darcy Fuenzalida Mauricio Nash Administración y Contabilidad Tender offer abnormal return emerging market Different studies in developed capitalmarkets have found positive abnormalreturns of at least 15% during theannouncement date of a tender offer.Although there are almost no studiesfor South American stock markets,some studies reported positive abnormalreturns, ranging from 25% to50%, related to the announcement ofthe fi rst tender offer. In this study oneargues that estimated positive abnormalreturns in emerging markets arehigh because studies have assumed acompletely segmented capital marketby applying the market model with a local stock market index. By allowingfor partial integration among fiveSouth American emerging markets,one shows that there are in factpositive abnormal returns previously,during, and after the announcementdate of the first tender offer. However,the positive abnormal returnassociated to the announcementdate is in the order of 8%. A slightlyhigher abnormal return is obtainedusing a market model that accountsfor partial integration and downsiderisk. These results prompt towardsa lower positive abnormal return inthe sample of South American fi rmsstudied. 2006 artículo científico 0123-5923 https://www.redalyc.org/articulo.oa?id=21210101 https://www.redalyc.org/journal/212/21210101/ https://www.redalyc.org/journal/212/21210101/html/ https://www.redalyc.org/journal/212/21210101/21210101.epub https://www.redalyc.org/journal/212/21210101/movil en http://www.redalyc.org/revista.oa?id=212 Estudios Gerenciales application/pdf Universidad ICESI Estudios Gerenciales (Colombia) Num.101 Vol. 22
format Artículo científico
id redalyc_21210101
institution Redalyc
language en
publishDate 2006
publisher Universidad ICESI
spellingShingle Tender offers in South America: Are abnormal returns really high?
Samuel Mongrut
Administración y Contabilidad
Tender offer
abnormal return
emerging market
Tender offers in South America: Are abnormal returns really high? Samuel Mongrut Juan Tapia Darcy Fuenzalida Mauricio Nash Administración y Contabilidad Tender offer abnormal return emerging market Different studies in developed capitalmarkets have found positive abnormalreturns of at least 15% during theannouncement date of a tender offer.Although there are almost no studiesfor South American stock markets,some studies reported positive abnormalreturns, ranging from 25% to50%, related to the announcement ofthe fi rst tender offer. In this study oneargues that estimated positive abnormalreturns in emerging markets arehigh because studies have assumed acompletely segmented capital marketby applying the market model with a local stock market index. By allowingfor partial integration among fiveSouth American emerging markets,one shows that there are in factpositive abnormal returns previously,during, and after the announcementdate of the first tender offer. However,the positive abnormal returnassociated to the announcementdate is in the order of 8%. A slightlyhigher abnormal return is obtainedusing a market model that accountsfor partial integration and downsiderisk. These results prompt towardsa lower positive abnormal return inthe sample of South American fi rmsstudied. 2006 artículo científico 0123-5923 https://www.redalyc.org/articulo.oa?id=21210101 https://www.redalyc.org/journal/212/21210101/ https://www.redalyc.org/journal/212/21210101/html/ https://www.redalyc.org/journal/212/21210101/21210101.epub https://www.redalyc.org/journal/212/21210101/movil en http://www.redalyc.org/revista.oa?id=212 Estudios Gerenciales application/pdf Universidad ICESI Estudios Gerenciales (Colombia) Num.101 Vol. 22
title Tender offers in South America: Are abnormal returns really high?
topic Administración y Contabilidad
Tender offer
abnormal return
emerging market
url https://www.redalyc.org/articulo.oa?id=21210101
https://www.redalyc.org/journal/212/21210101/
https://www.redalyc.org/journal/212/21210101/html/
https://www.redalyc.org/journal/212/21210101/21210101.epub
https://www.redalyc.org/journal/212/21210101/movil