0000000000007346
AUTHOR
Miguel Angel Latorre Guillem
La problemmtica de la gestiin de cobro en una corredurra de seguros (The Problematic Collection Management in an Insurance Broker)
Spanish Abstract: Este estudio plantea en que medida afecta a un corredor de seguros la gestion de cobro de las primas que intermedia dentro del mercado asegurador. Si bien la actividad de un corredor de seguros se caracteriza por su elevada autonomia, este hecho podria suponer soportar mas costes administrativos que otro tipo de agente dentro del mercado de la mediacion de seguros. Asi, ante esta cuestion son considerados diversos aspectos a tener en consideracion y que afectan la decision por parte de un corredor de seguros de asumir la gestion de cobro, por un lado, tienen en cuenta, consideraciones a la retribucion financiera de la tesoreria gestionada en un entorno con la evolucion a l…
Investor Sentiment or Managerial Overconfidence: The Back Room of Acquisitions
In this study, we investigate bidder performance (both in the short and the long term) in periods of high and low valuation market in response to announcements of acquisitions carried out by Spanish listed firms over the period 1991-2011. We provide evidence that bidder reaction to acquisitions, in both the short and the long term, is not consistent with the predictions of investor sentiment (optimism) after controlling for target type. However, our findings after controlling for bidder market-to-book ratio reveal under reaction in acquisitions of listed targets that is not independent of the market sentiment, since it is greater in hot periods. Finally, the results are not so consistent fo…
Value Creation When Acquiring Public vs Private Firms. Spanish Evidence
We investigate shareholder value creation of Spanish listed firms in response to announcements of acquisitions of unlisted companies and compare this experience to the purchase of listed firms over the period 1991–2011. Similar to foreign markets, acquirers of listed targets earn insignificant average abnormal returns. However, acquirers of listed targets that perform a first bid show significant negative abnormal returns. Acquirers of unlisted targets gain significant positive average abnormal returns. When we relate these results to company and transaction characteristics our evidence suggests that the listing status effect is mainly associated with the fact that unlisted firms tend to be…
Ethical Behaviour and Operating Performance of Insurance Broker Firms
In this research we investigate whether there is a relationship between the ethical behaviour of insurance brokers and their operating performance. Specifically, we focus on the practice of deferring the premiums charged to clients in order to invest them in short–term financial products and, as a result, gain an additional financial return to their traditional sources of income. We consider this practice to be an unethical behaviour since uninformed clients, that is, those who are not aware of the legal process of brokerage, expect the broker to immediately process the policy with the insurance company once the premium has been paid. We find that the better the performance and the larger t…
Reaccionan Completamente los Precios ante un Anuncio de Adquisiciin? Evidencia en el Mercado de Control de Empresas Espaaol (Do Prices Fully React to Acquisition Announcements? Evidence from the Spanish Market for Corporate Control)
This note examines whether prices fully reflect value creation or destruction at the time of the acquisition announcement when samples are split into listed and unlisted target firms as previous international results are ambiguous about this subject. We find that the Spanish market fully react to the acquisition announcement (showing value creation only for unlisted target firms acquisitions), except for the smallest bidders of public targets since we find significant positive abnormal returns for a 24-month post-acquisition window when event portfolio returns are computed equally-weighted but insignificant abnormal returns when value-weighted returns are computed. This evidence is consiste…
Market valuation and acquiring firm performance in the short and long term: Out-of-sample evidence from Spain
We investigate bidder’s short- and long-term performance in periods of high and low valuation market in response to announcements of acquisitions carried out by Spanish listed firms over the period 1991–2016. We find that acquirers of unlisted targets fully react at the announcement date in high valuation periods, meanwhile the underreaction of listed target bidders at the moment of the announcement in low valuation markets is the result of return continuations. In addition, we find that the market reaction do not depend on recent merger history. Therefore, we provide evidence that bidder reaction to acquisitions is not consistent with the predictions of market sentiment (optimism) after c…