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The Relationship between the Argentinean Debt Rescheduling Announcement and Bank Equity Returns
Author(s) -
Mansur Iqbal,
Cochran Steven J.,
Seagers David K.
Publication year - 1990
Publication title -
financial review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.621
H-Index - 47
eISSN - 1540-6288
pISSN - 0732-8516
DOI - 10.1111/j.1540-6288.1990.tb00799.x
Subject(s) - equity (law) , business , debt , sample (material) , monetary economics , financial system , return on equity , economics , finance , profitability index , chemistry , chromatography , political science , law
This study examines the effects of the Argentinean debt rescheduling announcement on the equity return levels of several large U.S. commercial banks. The empirical evidence suggests that the equity prices of sample banks immediately reflected the relevant information associated with the announcement. However, the market was unable to discriminate among banks on the basis of exposure to Argentinean loans.