The Stock Market Reaction to Mergers and Acquisitions: Evidence from the Banking Industry
نویسندگان
چکیده
This paper focuses on the effect of mergers and acquisitions (M&As) announcements stocks Latin American banks their rivals between 2000 2019. We evaluate two impacts M&A announcements: cumulative abnormal returns (CAR) event-induced variance (EIV). use GARCH-based event-study method, finding that acquirers target have a statistically significant CAR targets are not affected by announcements. observe EIV is negative for acquirers, targets, rivals. Finally, in robustness exercise, we estimate multivariate GARCH model, results remain qualitatively equal.
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ژورنال
عنوان ژورنال: Latin American Business Review
سال: 2021
ISSN: ['1097-8526', '1528-6932']
DOI: https://doi.org/10.1080/10978526.2021.1939041