No presenta resumen

No presenta resumen

An increasing amount of empirical research conducted at different times and in different geographical settings challenges the traditional assumption of the normal distribution of stock returns evident in the main body of financial theory. This article involved testing the normality assumption for the behavior of market returns in the main Latin American stock markets. Normality tests were applied to daily market returns for the period 2000 to 2007 for the main security markets of Peru, Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela. The normality hypothesis is rejected for all these markets. The article also involved testing the normality assumption for market returns over longer periods, considering specifically blocks of 5, 20, 60, and 120 consecutive market days between 2000 and 2007. In general, the behavior of the returns approaches a normal distribution as the length of ...

Purpose. This paper aims to examine the relationship between cash holdings (CH) and expected equity return in a sample of firms of Pacific alliance countries. Design/methodology/approach. This paper constructed a panel of Pacific alliance firms for the period ranging from 2010 to 2016. This paper estimated different specification models using multivariate regression, and the statistical technique used to validate the hypothesis was panel data. Findings. Results showed that there is a positive relationship between CH and expected equity return (r). The relationship between CH and systematic risk (ß) was estimated and this paper found a positive and statistically significant association. Findings suggest that corporate liquidity contains underlying information that contributes to explain the expected equity return, which, if ignored, can produce quite misleading results. Originality/value...

Purpose. This paper aims to examine the relationship between cash holdings (CH) and expected equity return in a sample of firms of Pacific alliance countries. Design/methodology/approach. This paper constructed a panel of Pacific alliance firms for the period ranging from 2010 to 2016. This paper estimated different specification models using multivariate regression, and the statistical technique used to validate the hypothesis was panel data. Findings. Results showed that there is a positive relationship between CH and expected equity return (r). The relationship between CH and systematic risk (ß) was estimated and this paper found a positive and statistically significant association. Findings suggest that corporate liquidity contains underlying information that contributes to explain the expected equity return, which, if ignored, can produce quite misleading results. Originality/value...