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

Lina Cortés, John García () and David Agudelo ()

No 12453, Documentos de Trabajo de Valor Público from Universidad EAFIT

Abstract: 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.

Keywords: Mergers and acquisitions; Event study; Airlines; Latin America (search for similar items in EconPapers)
JEL-codes: G14 G34 L21 (search for similar items in EconPapers)
Pages: 32
Date: 2015-01-01
New Economics Papers: this item is included in nep-com and nep-lam
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:col:000122:012453

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