Alejandra Cabello

DAY OF THE WEEK AND MONTH OF THE YEAR EFFECTS AT THE LATIN AMERICAN EMERGING MARKETS

Deviations from efficiency widely documented for the case of developed capital markets include the presence of seasonal patterns. These anomalies, fairly well known by investors, could possibly lead to obtaining extraordinary gains. Although markets from the developing and transitional economies have grown significantly during the last decades, research concerning their seasonal behavior is limited. This paper examines the day-of-the week and month-of-the year effect for the seven Latin American stock exchanges: Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Venezuela. Returns derived from the local nominal indexes, adjusted for inflation indexes, and dollar adjusted indexes are analyzed to identify the behavior of each exchange and draw some comparisons.

Debt Crisis and Economic Recovery and Performance of the Emerging Latin American Equity Markets

Publisher Summary In the aftermath of the debt crisis of the 1980s, portfolio investments have become one of the most important alternative forms of development financing to countries which, in previous decades, relied heavily on traditional financing, i.e., borrowing from the public sector. In addition, it is important to know how these markets have performed under economic stress, and how these markets are responding to economic recovery and liberalization policies. Although research on emerging capital markets has increased significantly during the last few years, little is still known about their trends and changing structure. This chapter discusses debt crisis and economic recovery and performance of the emerging Latin American equity markets. It also examines the evolution of the Latin American economies during the 1980 - 1992 periods, stressing the debt crisis and economic recovery during the last few years, to identify the main macroeconomic problems of the area.