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El trimestre económico
On-line version ISSN 2448-718XPrint version ISSN 0041-3011
Abstract
PARISI, Franco; PARISI, Antonino and MAQUIEIRA, Carlos. ADR-IPO latinoamericanos registrados en la bolsa de comercio de Nueva York. El trimestre econ [online]. 2008, vol.75, n.298, pp.379-402. Epub Nov 20, 2020. ISSN 2448-718X.
We study the short and long term performance of the stock returns of Latin American companies with an Initial Public Offering (IPOs) by American Depositary Receipts (ADR) in New York Stock Exchange (NYSE). The results indicate a statistically significant under pricing of 9.22% for the ADR-IPOs that compose the portfolio, and a yield of 3.75% when finalizing the third year, being statistically non-significant. Both behaviors were confirmed by the methodology Block Bootstrap, obtaining, in average, an 11.33% for the underpricing and a 3.92% for the third year post listing. These results were expected and they agree to what’s indicated by the international literature. At the time to study these Latin American securities comparing its yield with the local market portfolios, the initial underpricing is of −0.51% and of 2.95% after three years; both results are not statistically significant. Because of this, the American investors are the ones who see the most benefits with this type of issuing over the local investors. It’s important to notice that the ADR-IPOs do not display a negative abnormal return after three years of the issue, fact that is in opposition to what’s indicated by the financial literature.
Keywords : ADR-IPO; subvaloración; desempeño de largo plazo.