Effects of Mergers and Acquisitions on Shareholder Wealth: Event Study for Latin American Airlines

Fecha

2015-01-01

Autores

Cortés, Lina M.
García, John J.
Agudelo, David

Título de la revista

ISSN de la revista

Título del volumen

Editor

Universidad EAFIT

Resumen

This study analyzes the effectof changes in corporate controlon the way shareholdersbenefit from the announcements of selling and buying airlines, thus contributing to the literature on mergers and acquisitions (M&As) in emerging markets. Using a methodologyof event study, including GARCH and OLS models, we find evidence that some selling companies obtain abnormal returns that are statisticallysignificant after the announcement of the M&A. However, when the merger is not strategic, the companies present statisticallysignificant negative abnormal returns. The resultsare not conclusive when analyzing the effecton the valueof the buying companies.

Descripción

Palabras clave

Citación