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Incidencia del desempeño de la acción sobre los eventos de fusiones y adquisiciones en América Latina (2005-2009)
[Stock performance and mergers and acquisitions: Evidence for Latin America (2005-2009)]

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  • Romero, Hector
  • Fajardo, Eddy Johanna

Abstract

This study aims to determine whether the stock performance of a company affects the frequency of events associated with mergers and acquisitions in Latin America. In order to determine this hypothesis, companies with a consistently poor stock performance (for a period of three years) were identified for a selected number of countries in the region. Subsequently, companies with the lowest decile, in terms of stock returns were compared with the best performing decile, in order to analyze whether there is a higher incidence of events of mergers and acquisitions in the sample of firms with poor performance. The results showed that the highest number of mergers and acquisitions events occurred more frequently in the lowest decile, so a mediocre performance of the stock of the company affects the frequency of events associated with mergers and acquisitions in the sample studied for the period 2005- 2009 in Latin America.

Suggested Citation

  • Romero, Hector & Fajardo, Eddy Johanna, 2015. "Incidencia del desempeño de la acción sobre los eventos de fusiones y adquisiciones en América Latina (2005-2009) [Stock performance and mergers and acquisitions: Evidence for Latin America (2005-2," MPRA Paper 69695, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:69695
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    References listed on IDEAS

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    More about this item

    Keywords

    Stocks performance; Mergers and acquisitions; Latin America;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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