Market segmentation: Venezuelan ADRs
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| Format: | Artículo científico |
| Language: | en |
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Universidad Nacional de Colombia
2012
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| _version_ | 1876423608807456768 |
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| author | Urbi Garay |
| author_facet | Urbi Garay |
| contents | Market segmentation: Venezuelan ADRs Urbi Garay Maximiliano González Administración y Contabilidad emerging markets market segmentation Caracas Stock Exchange American Depositary Receipts The control on foreign exchange imposed by Venezuela in 2003 constitute a naturalexperiment that allows researchers to observe the effects of exchange controls on stock market segmentation. This paper provides empirical evidence that although the Venezuelan capital market as a whole was highly segmented before the controls were imposed, the shares in the firm CANTV were, through their American Depositary Receipts (ADRs), partially integrated with the global market.Following the imposition of the exchange controls this integration was lost. Research alsodocuments the spectacular and apparently contradictory rise experienced by the Caracas StockExchange during the serious economic crisis of 2003. It is argued that, as it happened in Argentina in 2002, the rise in share prices occurred because the depreciation of the Bolívar in the parallel currency market increased the local price of the stocks that had associated ADRs, which were negotiated in dollars. 2012 artículo científico 0121-5051 https://www.redalyc.org/articulo.oa?id=81827442007 en http://www.redalyc.org/revista.oa?id=818 INNOVAR. Revista de Ciencias Administrativas y Sociales application/pdf Universidad Nacional de Colombia INNOVAR. Revista de Ciencias Administrativas y Sociales (Colombia) Num.46 Vol.22 |
| format | Artículo científico |
| id | redalyc_81827442007 |
| institution | Redalyc |
| language | en |
| publishDate | 2012 |
| publisher | Universidad Nacional de Colombia |
| spellingShingle | Market segmentation: Venezuelan ADRs Urbi Garay Administración y Contabilidad emerging markets market segmentation Caracas Stock Exchange American Depositary Receipts Market segmentation: Venezuelan ADRs Urbi Garay Maximiliano González Administración y Contabilidad emerging markets market segmentation Caracas Stock Exchange American Depositary Receipts The control on foreign exchange imposed by Venezuela in 2003 constitute a naturalexperiment that allows researchers to observe the effects of exchange controls on stock market segmentation. This paper provides empirical evidence that although the Venezuelan capital market as a whole was highly segmented before the controls were imposed, the shares in the firm CANTV were, through their American Depositary Receipts (ADRs), partially integrated with the global market.Following the imposition of the exchange controls this integration was lost. Research alsodocuments the spectacular and apparently contradictory rise experienced by the Caracas StockExchange during the serious economic crisis of 2003. It is argued that, as it happened in Argentina in 2002, the rise in share prices occurred because the depreciation of the Bolívar in the parallel currency market increased the local price of the stocks that had associated ADRs, which were negotiated in dollars. 2012 artículo científico 0121-5051 https://www.redalyc.org/articulo.oa?id=81827442007 en http://www.redalyc.org/revista.oa?id=818 INNOVAR. Revista de Ciencias Administrativas y Sociales application/pdf Universidad Nacional de Colombia INNOVAR. Revista de Ciencias Administrativas y Sociales (Colombia) Num.46 Vol.22 |
| title | Market segmentation: Venezuelan ADRs |
| topic | Administración y Contabilidad emerging markets market segmentation Caracas Stock Exchange American Depositary Receipts |
| url | https://www.redalyc.org/articulo.oa?id=81827442007 |