EconPapers    
Economics at your fingertips  
 

Coups, Corporations, and Classified Information

Arindrajit Dube, Ethan Kaplan () and Suresh Naidu

No 16952, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We estimate the impact of coups and top-secret coup authorizations on asset prices of partially nationalized multinational companies that stood to benefit from US-backed coups. Stock returns of highly exposed firms reacted to coup authorizations classified as top-secret. The average cumulative abnormal return to a coup authorization was 9% over 4 days for a fully nationalized company, rising to more than 13% over sixteen days. Pre-coup authorizations accounted for a larger share of stock price increases than the actual coup events themselves.There is no effect in the case of the widely publicized, poorly executed Cuban operations, consistent with abnormal returns to coup authorizations reflecting credible private information. We also introduce two new intuitive and easy to implement nonparametric tests that do not rely on asymptotic justifications.

JEL-codes: F50 G14 N10 (search for similar items in EconPapers)
Date: 2011-04
Note: AP DAE POL
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (44) Track citations by RSS feed

Published as Arindrajit Dube & Ethan Kaplan & Suresh Naidu, 2011. "Coups, Corporations, and Classified Information," The Quarterly Journal of Economics, Oxford University Press, vol. 126(3), pages 1375-1409.

Downloads: (external link)
http://www.nber.org/papers/w16952.pdf (application/pdf)

Related works:
Journal Article: Coups, Corporations, and Classified Information (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:16952

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w16952

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2022-06-17
Handle: RePEc:nbr:nberwo:16952