The Impact of Expropriations on the Stock Prices of the Parent Companies: Sell on the rumor, buy on the news?
| Contribuinte(s) |
drestr90@ea t.edu.co |
|---|---|
| Cobertura |
Medellín de: Lat: 06 15 00 N degrees minutes Lat: 6.2500 decimal degrees Long: 075 36 00 W degrees minutes Long: -75.6000 decimal degrees |
| Data(s) |
08/08/2016
01/06/2016
08/08/2016
|
| Resumo |
We measure the impact of warnings of expropriation and of forced divestments of pri- vate property on the stock prices of the parent company. We use a unique database of 116 events in 12 countries from 2005 to 2013. Our results show signi cant negative effects on the stock prices of different kinds of warnings; the largest effect is when the warning takes the form of a transitory permit revocation. In the case of forced divestments, we nd a signi cant negative impact when there is a permanent revocation of a permit. However, nationalizations seem to generate a positive market reaction. |
| Identificador |
http://hdl.handle.net/10784/9014 G14, H13 |
| Idioma(s) |
eng |
| Publicador |
Universidad EAFIT Escuela de Economía y Finanzas |
| Direitos |
info:eu-repo/semantics/openAccess openAccess Libre acceso |
| Palavras-Chave | #Expropriation risk, Nationalization, Event study, Stock Market |
| Tipo |
workingPaper Documento de trabajo de investigación draf |
