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dc.coverage.spatialMedellín de: Lat: 06 15 00 N degrees minutes Lat: 6.2500 decimal degrees Long: 075 36 00 W degrees minutes Long: -75.6000 decimal degreeseng
dc.date.available2020-02-27T15:59:26Z
dc.date.issued2020-02-19
dc.identifier.urihttp://hdl.handle.net/10784/15887
dc.description.abstractMergers and acquisitions (M&As) are mainly a mechanism used in the Latin American banking industry to carry out business consolidation. This paper focuses on the effect of M&A announcements on stocks of Latin American banks and their rivals between 2000 and 2019. We evaluate two impacts of M&A announcements: impacts on cumulative abnormal returns (CAR) and impacts on event-induced variance (EIV). We use the GARCH-based event-study method. We find that acquirers and target banks have a statistically significant CAR, however, the sign is inconclusive. Rivals of acquirers and targets are not affected by M&A announcements. In general, we observe that EIV is negative for acquirers, targets, and rivals. Finally, we estimate a multivariate GARCH model to isolate the effects of co-movements of volatility between the acquirer and the target, and we find that the results remain qualitatively equal.spa
dc.language.isospaspa
dc.publisherUniversidad EAFITspa
dc.titleThe Stock Market Reaction to Mergers and Acquisitions: Evidence from the Banking Industryspa
dc.typeworkingPaperspa
dc.rights.accessrightsinfo:eu-repo/semantics/openAccessspa
dc.publisher.departmentEscuela de Economía y Finanzasspa
dc.type.localDocumento de trabajo de investigaciónspa
dc.subject.keywordEmerging Markets; GARCH event study; Latin America; Banking industryspa
dc.identifier.localC32; G14; G21; G34;
dc.rights.localAcceso abiertospa
dc.date.accessioned2020-02-27T15:59:26Z
dc.type.hasVersiondrafspa
dc.contributor.authorLozada, Juan M
dc.contributor.authorCortés, Lina M.
dc.contributor.authorVelasquez Gaviria, Daniel


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