Tender Offers in South America: Do They Convey Good News to the Market?
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| Natura: | Artículo científico |
| Lingua: | en |
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Universidad Autónoma Metropolitana
2006
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| _version_ | 1876423606662070272 |
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| author | Darcy Fuenzalida |
| author_facet | Darcy Fuenzalida |
| contents | Tender Offers in South America: Do They Convey Good News to the Market? Darcy Fuenzalida Samuel Mongrut Mauricio Nash Economía y Finanzas tender offer abnormal return emerging market Different studies in developed capital markets have found positive abnormal returns of atleast 15% during the announcement date of a tender offer. Although there are almost nostudies 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 studyargues that estimated positive abnormal returns in emerging markets are high because studieshave assumed a completely segmented capital market by applying the market model with alocal stock market index. By allowing for partial integration among five South Americanemerging 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 positiveabnormal return associated to the announcement date is around 8%. A slightly higher abnormalreturn is obtained using a market model that accounts for partial integration and downsiderisk. These results prompt towards a lower positive abnormal return in the sample of SouthAmerican firms studied 2006 artículo científico 0185-3937 https://www.redalyc.org/articulo.oa?id=41304810 en http://www.redalyc.org/revista.oa?id=413 Análisis Económico application/pdf Universidad Autónoma Metropolitana Análisis Económico (México) Num.48 Vol.XXI |
| format | Artículo científico |
| id | redalyc_41304810 |
| institution | Redalyc |
| language | en |
| publishDate | 2006 |
| publisher | Universidad Autónoma Metropolitana |
| spellingShingle | Tender Offers in South America: Do They Convey Good News to the Market? Darcy Fuenzalida Economía y Finanzas tender offer abnormal return emerging market Tender Offers in South America: Do They Convey Good News to the Market? Darcy Fuenzalida Samuel Mongrut Mauricio Nash Economía y Finanzas tender offer abnormal return emerging market Different studies in developed capital markets have found positive abnormal returns of atleast 15% during the announcement date of a tender offer. Although there are almost nostudies 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 studyargues that estimated positive abnormal returns in emerging markets are high because studieshave assumed a completely segmented capital market by applying the market model with alocal stock market index. By allowing for partial integration among five South Americanemerging 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 positiveabnormal return associated to the announcement date is around 8%. A slightly higher abnormalreturn is obtained using a market model that accounts for partial integration and downsiderisk. These results prompt towards a lower positive abnormal return in the sample of SouthAmerican firms studied 2006 artículo científico 0185-3937 https://www.redalyc.org/articulo.oa?id=41304810 en http://www.redalyc.org/revista.oa?id=413 Análisis Económico application/pdf Universidad Autónoma Metropolitana Análisis Económico (México) Num.48 Vol.XXI |
| title | Tender Offers in South America: Do They Convey Good News to the Market? |
| topic | Economía y Finanzas tender offer abnormal return emerging market |
| url | https://www.redalyc.org/articulo.oa?id=41304810 |