The Announcement Effect of Bond and Equity Issues: Evidence from Chile

Augusto Castillo

No 218, Econometric Society 2004 Latin American Meetings from Econometric Society

Abstract: This paper analyzes the impact of security offering announcements on stock prices for a sample of 172 issues of securities in the Chilean financial market, during the 1993-2002 period. The sample is composed by 116 equity issues and 56 corporate bond issues. During the same period the SVS (Superintendencia de Valores y Seguros) authorized a total of 562 security issues in Chile, but the final sample was reduced to 172 issues after excluding those companies where not enough trading information was available to perform the study. The main objective of the paper is to verify if the announcement of security offerings has the same impact in Chile as in other countries such as the U.S., where these kind of studies have been performed. To my knowledge this is the first study addressing this issue with Chilean data. We will also try to identify variables that could help to explain differences in the reaction to the issue announcement across issues

Keywords: Bonds; Stocks; Study Events (search for similar items in EconPapers)
JEL-codes: C1 G14 (search for similar items in EconPapers)
Date: 2004-08-11
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ecm:latm04:218

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