This article examines the shareholder wealth effects for foreign companies that announce acquisitions of financial institutions in Latin America. We examine data for 636 transactions for the period 1985–2009. We employ event study methodology coupled with a cross-sectional regression to...

We propose a simple method for estimating betas (factor loadings) when factors are measured with error: Ordinary Least-squares Instrumental Variable Estimator (OLIVE). OLIVE is intuitive and easy to implement. OLIVE performs well when the number of instruments becomes large (can be larger than...

We find that opinion divergence among professional investment managers is commonplace, using a large sample of transaction-level institutional trading data. When managers trade together, future returns are similar regardless if they are all buying or selling, inconsistent with the notion that...