Mergers as Determinants of Low Capital Costs: The Mexico Case by Means of the Application of a Fuzzy Regression Model
In this study we analyze whether mergers reducethe capital cost of public companies in Mexico. For thispurpose, we start with a sample made up by companies fromdifferent sectors that form the Stock Market Index (IPC,by its name in Spanish) that made an acquisition operationapproved by the Mexican au...
| Autor Principal: | Hinojosa Treviño, Sergio Raúl; Universidad Autónoma de Nuevo León |
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| Otros Autores: | Cortez Alejandro, Klender Aimer; Universidad Autónoma de Nuevo Leon, Rodríguez García, Martha del Pilar; Universidad Autónoma de Nuevo León |
| Formato: | info:eu-repo/semantics/article |
| Idioma: | spa |
| Publicado: |
Editorial Pontificia Universidad Javeriana
2015
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| Materias: | |
| Acceso en línea: |
http://revistas.javeriana.edu.co/index.php/cuacont/article/view/15016 |
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| Sumario: |
In this study we analyze whether mergers reducethe capital cost of public companies in Mexico. For thispurpose, we start with a sample made up by companies fromdifferent sectors that form the Stock Market Index (IPC,by its name in Spanish) that made an acquisition operationapproved by the Mexican authorities during 2010 and 2011.In order to estimate the capital cost we used the traditionalCAPM and the D-CAPM, which considers a downtrend risk.Both estimates were made three years before and three yearslater after the acquisition with two measuring methods:Ordinary Least Squares and Fuzzy Regression. The resultsshow an advantage of the fuzzy regression method over theordinary least squares, mainly for periods with a high uncertainty.Besides, taking into account the estimations of theD-CAPM model, we can conclude that for the companies inthe sample, there is a 0.62 to 0.65 chance of reduction in thecapital cost after the merger. |
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