Arbitrage with ADRs: a sectorial case study for companies in Colombia, Mexico, Brazil and Chile

Authors

  • Daniela Fleisman Universidad EAFIT
  • Andrés Mauricio Mora Universidad EAFIT

Keywords:

American Depositary Receipts (ADRs), law of one price, efficient markets, arbitrage

Abstract

This research continues the paper “Generalidades de los ADRs: Un estudio de casosectorial para empresas de Colombia, Mexico, Brasil y Chile” [ADRs generalities: a sectorial case study for companies in Colombia, Mexico, Brazil and Chile]. It is organizedin two sections. The first one covers the unique price theory and the efficient markets hypothesis. In the second one, arbitrage conditions with ADRs are empirically evaluated. The objective is to prove the existence of price differentials between stocks and ADRs, which would allow investors to obtain a risk free return.

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Author Biographies

  • Daniela Fleisman, Universidad EAFIT
    Economista, Universidad EAFIT. Analista Portafolios Privados, Bolsa y Renta S.A., Colombia.
  • Andrés Mauricio Mora, Universidad EAFIT
    Administrador de Negocios, Especialista en Finanzas, Magíster en Administración Financiera, Magíster en Ciencias de la Administración, Universidad EAFIT. Especialista en Análisis Bursátil, Instituto de Estudios Bursátiles (I.E.B). Jefe del Departamento de Finanzas, Universidad EAFIT, Colombia.

     

     

References

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Published

2011-12-15

Issue

Vol. 15 No. 33 (2011)

Section

Articles

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How to Cite

Fleisman, D., & Mora, A. M. (2011). Arbitrage with ADRs: a sectorial case study for companies in Colombia, Mexico, Brazil and Chile. Ecos de Economía, 15(33), 7-23. https://publicaciones.eafit.edu.co/index.php/ecos-economia/article/view/437

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