@article {1604264,
	title = {Fool{\textquoteright}s Gold: On the Impact of Venezuelan Devaluations in Multinational Stock Prices},
	journal = {Economia LACEA },
	volume = {19},
	number = {1},
	year = {2018},
	pages = {93-128},
	abstract = {This paper documents negative cumulative abnormal returns (CARs) to five\&nbsp;exchange rate devaluations in Venezuela within the context of stiff exchange controls and large\&nbsp;black-market premiums, using daily stock prices for 110 multinational corporations with Venezuelan\&nbsp;subsidiaries. The results suggest evidence of statistically and economically significant\&nbsp;negative CARs of up to 2.07 percent over the ten-day event window. We find consistent results\&nbsp;using synthetic controls to causally infer the effect of each devaluation on the stock prices\&nbsp;of global firms active in the country at the time of the event. Our results are at odds with the\&nbsp;predictions of the efficient market hypothesis stating that predictable devaluations should not\&nbsp;affect the stock prices of large multinational companies on the day of the event, and even less\&nbsp;so when they happen in small countries. We interpret these results as a suggestive indication of\&nbsp;market inefficiencies in the process of asset pricing.},
	url = {https://muse.jhu.edu/article/708363/pdf},
	author = {Dany Bahar and Carlos A. Molina and Miguel A. Santos}
}
