Open AccessThe Relationship Between Bank Equity Returns And The Brazilian Interest Payments Moratorium
Author(s) -
Iqbal Mansur,
Steven J. Cochran,
Dave T. Cahill
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v5i1.6376
Subject(s) - equity (law) , payment , business , sample (material) , portfolio , event study , monetary economics , economics , financial system , finance , geography , chemistry , context (archaeology) , archaeology , chromatography , political science , law
The purpose of this study is to examine the effects of the Brazilian announcement to suspend interest payments on the equity return levels of several large U.S. commercial banks. Using event study methodology, the evidence suggests that the equity prices of the sample banks fully and immediately reflected the relevant information associated with the Brazilian announcement. Additionally, the patterns of portfolio excess returns revealed that the less exposed banks experienced less loss than ether the total bank sample or the more exposed group.