The impact of capital controls on firm value

• Autor(a) principal: Baguecho, Ana Sílvia Boutte Fagulha
• Data de Publicação: 2016
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/13474
• topic: Abnormal returns; Capital controls; Event studies; Short term wealth effects; Finanças; Movimentos de capitais; Controlo financeiro; Retorno anormal; Estudo de eventos

This research studies the impacts of controls on capital outflows in stock returns, by analysing: the reaction of investors to the announcement of the imposition of the restrictions. The purpose of this dissertation was to investigate: - If the implementation of controls on capital outflows has a negative effect on firms´ stock prices? - If the imposition of controls on capital outflows has a different impact across industries? And how it affects differently firms´ in export oriented-sectors and the remaining sectors? The existence of potential differences in the impacts on stock prices: of the imposition of restrictions and a tightening of the capital controls already in place, was also examined. This dissertation intends to contribute for the knowledge of controls on capital outflows, through an analysis of the impact of their implementation in: Cyprus, Greece, Brazil and Argentina. Nonetheless, based on the results obtained it is not possible to draw a conclusion on the impacts of the imposition of restrictions to funds mobility in stock returns. The findings are not only inconsistent with the main hypothesis formulated, but also do not support the initial study expectation: that firms operating in sectors with a high export volume exporting would face smaller losses, in stock prices, than the remaining companies. Furthermore, it appears that the impacts of the imposition of controls on capital outflows differ among different industry groups; which also contradicts the results of previous research, on inflow controls, and leads to the rejection of the hypotheses established.