PREMIA IN EMERGING MARKET ADR PRICES:EVIDENCE FROM CHILE

Rodrigo Saens ()

Abante, 1999, vol. 2, issue 1, 51-70

Abstract: The impact of issuing American Depository Receipts on the wealth of Latin American shareholders has been rarely discussed in the specialized literature. The Event Study methodology is used to analyze the reaction to Public Announcement of ADRs. Using several model specifications the results robustly indicate that prices incorporate such announcement in a positive statistically and economically significant way with a cumulative average-abnormal return of 5% in three days and a 9% for a window of twenty one days.

Keywords: ADR; Event Study; Capital Structure; Emerging Stock Market; Chile (search for similar items in EconPapers)
JEL-codes: G14 G32 (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (1)

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