What is it about?
Using Event Study Methodology, this work analyzes how significant was the response of the publicly traded state-owned Mexican banks’ stock price to their privatization announcement (May 1st, 1990), and quantifies its wealth-creation effects.
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Why is it important?
Market efficiency event studies during the privatization processes in emerging markets supply original evidence about the workings of price determination in less mature and somewhat incomplete markets. This is an interesting example of such a well documented event.
Perspectives
There is a need for a more technical interpretation of political and economic events in emerging countries, both for the investor as well as for the government entities in charge of the supervision and the regulation of relatively incipient stock markets. The current study meets that need in the case of the Mexican banks early 1990s privatization process.
Doctor Roberto Joaquín Santillán-Salgado
Instituto Tecnologico y de Estudios Superiores de Monterrey
Read the Original
This page is a summary of: Market Efficiency during the Mexican Banks’ Privatization Announcement, Modern Economy, January 2015, Scientific Research Publishing, Inc,,
DOI: 10.4236/me.2015.61010.
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