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Full-Text Articles in Finance
Financial Red Flags: Empirical Mapping Of Firm Political Preferences By Sector In Mexico, Ian Connors
Financial Red Flags: Empirical Mapping Of Firm Political Preferences By Sector In Mexico, Ian Connors
Master's Theses
Can the stock market be used to determine the political preferences of individual economic sectors? This paper explores the conceptual relationship between electoral outcomes and financial markets in Mexico. Specifically, it analyzes how financial markets predict the expected effects of a given political platform on the performance of firms within specific sectors. To do this, the study used event-study methodology to calculate abnormal returns on stock prices across the nine sectors listed on the Bolsa Mexicana de Valores stock exchange following the historic election of leftist candidate Andrés Manuel López Obrador (AMLO), On July 1, 2018. However, despite the uncertainty …
The Impact Of Immigration On Financial Markets, Jesse Baker
The Impact Of Immigration On Financial Markets, Jesse Baker
All Graduate Plan B and other Reports, Spring 1920 to Spring 2023
This paper studies the impact of immigration policy on financial markets. I estimate the cumulative abnormal returns surrounding two events the effective start date of the Immigration Act of 1990 and the implementation of the Temporary Protected Status (TPS) of Nicaragua and Honduras in 1999. Focusing on agriculture, construction, and manufacturing firms, I find that the CARs surrounding the events are indeed positive and significant, suggesting that the market anticipated growth among industries that are likely to hire Central American immigrants.
M&A Performance: Market’S Initial Reaction As An Unbiased Indicator Of Post-Acquisition Performance, Nikolaos Papageorgiou
M&A Performance: Market’S Initial Reaction As An Unbiased Indicator Of Post-Acquisition Performance, Nikolaos Papageorgiou
CMC Senior Theses
This paper investigates the reliability of the stock market’s initial reaction to M&A announcements as a predictor of actual post-acquisition performance. The two prevailing methods for evaluating M&A performance are event studies (stock market-based measures) and accounting-based measures. The present study combines these two performance evaluation approaches in a single empirical examination. Both the post-merger buy-and-hold abnormal returns and changes in ROA are used as actual post-acquisition performance variables. The acquirer’s cumulative abnormal return (CAR) around the announcement is used as the market predictor variable. An econometric model is employed to test the predictive power of the announcement-period CAR on …