Abstract

AMESTICA-RIVAS, Luis; CORNEJO-SAAVEDRA, Edinson; KING-DOMINGUEZ, Andrea  and  GONZALEZ DE LA FUENTE, Pablo. Use of Privileged Information in Mergers and Acquisitions in Chilean Industrial Sector over the Period 2010-2014. Cofin [online]. 2019, vol.13, n.2  Epub Sep 29, 2019. ISSN 2073-6061.

This study analyzes the behavior of the stock returns of a sample of firms in the Chilean stock market, classified by industrial sector, which made announcements of mergers and acquisitions (M&A) between 2010 and 2014. The sample consists of 30 firms that made 61 announcements for M&A: 13 announcements corresponded to the secondary sector and 48 to the tertiary sector. The results indicated that tertiary sector showed a positive and statistically significant average abnormal return on the day prior to the announcement of M&A, which revealed a possible leak of private information before the announcement, and could be the result of the insider trading.

Keywords : Chile; merger and acquisition; insider trading; capital market; abnormal returns..

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