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Effect On D&S Shareholdersâ´ Wealth And Chilean Retail Companies Due To The Announcement Of Public Offering Shares Adquisition, Efecto Sobre La Riqueza De Los Accionistas De D&S Y Empresas Del Sector Retail Chileno Producto Del Anuncio De Oferta Publica De Adquisicion De Sus Acciones

Author

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  • Eduardo Sandoval

Abstract

This article uses event study methodology through Seemingly Unrelated Regressions estimates (SUR), which allows controlling the data clustering phenomenon, in order to assess primarily the effect on D&S stock returns during the takeover announcement of its stocks by Walmart. The empirical results show significant abnormal returns of 32.2% during the announcement days. Thus, the entry of Walmart was reflected in the stock prices, which is associated with higher efficiency through increases in the expected future cash flows of the company.

Suggested Citation

  • Eduardo Sandoval, 2013. "Effect On D&S Shareholdersâ´ Wealth And Chilean Retail Companies Due To The Announcement Of Public Offering Shares Adquisition, Efecto Sobre La Riqueza De Los Accionistas De D&S Y Empresas Del Sector ," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 6(2), pages 1-13.
    • Handle: RePEc:ibf:riafin:v:6:y:2013:i:2:p:1-13
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    More about this item

    Keywords

    Takeover; Seemingly Unrelated Regression (SUR); Clustering;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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