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The vote for US President that occurred on November 8, 2016, resulted in a surprising outcome for many investors. As a result, markets reacted in the USA and other countries.… Click to show full abstract
The vote for US President that occurred on November 8, 2016, resulted in a surprising outcome for many investors. As a result, markets reacted in the USA and other countries. This study examines the short-term changes in the valuation of Mexican firms traded in the USA as American Depository Receipts and compares those results to the changes in the S&P 500 and the change in the value of the peso versus the dollar. Results show the ADRs lost over 7.7 per cent of their value after the election results were made known the following day. This compares to a 1. 1 per cent increase in the S&P 500 index and a 6.8 per cent decrease in the value of the peso that same day.
Journal Title: Journal of Asset Management
Year Published: 2017
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