Price transmission dynamics between ADRs and their underlying foreign security: The case of Banco de Colombia S.A.- Bancolombia.

This paper analyzes the dynamics ofthe American Depositary Receipt (ADR) of a Colombian bank (Bancolombia) in relation to its pricing factors (underlying (preferred) shares price, exchange rate and the US market index). The aim is to test if there is a long-term relation among these variables that would imply predictability. One cointegrating relation is found allowing the use of a vector error correction model to examine the transmission of shocks to the underlying prices, the exchange rate, and the US market index. The main finding of this paper is that in the short run, the underlying share price seems to adjust after changes in the ADR price, pointing to the fact that the NYSE (trading market for the ADR) leads the Colombian market. However, in the long run, both, the underlying share price and the ADR price, adjust to changes in one another.American Depositary Receipts, Stationarity Unit root test, Cointegration, Vector Error Correction Model

La fusión de Bancolombia, Conavi y Corfinsura: Una aplicación de la metodología de estudio de eventos

Este artículo analiza el proceso defusión de tres entidades financierascolombianas (Bancolombia, Conavi yCorfinsura) en términos de creaciónde valor para los accionistas involucradosen dicha transacción utilizando la denominada -metodología deestudio de eventos-. Esta metodologíatrata de cuantiÞ car el impacto de unevento (como el anuncio de una fusión) en la riqueza de los accionistasy determinar los posibles ganadores operdedores en el proceso. A través detest paramétricos y no paramétricosse logró determinar que los mayoresbeneficiados con la fusión fueron losaccionistas de Corfinsura quienestuvieron la oportunidad de intercambiarsus acciones por acciones máslíquidas de la entidad absorbente(Bancolombia) y de apropiarse (demanera anticipada) de la creaciónde valor derivada de la fusión y delas posibles sinergias operativas yfinancieras que ésta conlleva.Fusión, sector bancario colombiano,

PRICE TRANSMISSION DYNAMICS BETWEEN ADRs AND THEIR UNDERLYING FOREIGN SECURITY: THE CASE OF BANCO DE COLOMBIA S.A.- BANCOLOMBIA

This paper analyzes the dynamics of the American Depositary Receipt (ADR) of a Colombian bank (Bancolombia) in relation to its pricing factors (underlying (preferred)shares price, exchange rate and the US market index). The aim is to test if there is a long-term relation among these variables that would imply predictability. One cointegrating relation is found allowing the use of a vector error correction model to examine the transmission of shocks to the underlying prices, the exchange rate, and the US market index. The main finding of this paper is that in the short run, the underlying share price seems to adjust after changes in the ADR price, pointing to the fact that the NYSE (trading market for the ADR) leads the Colombian market.  However, in the long run, both, the underlying share price and the ADR price, adjust to changes in one another.This paper analyzes the dynamics of the American Depositary Receipt (ADR) of a Colombian bank (Bancolombia) in relation to its pricing factors (underlying (preferred)shares price, exchange rate and the US market index). The aim is to test if there is a long-term relation among these variables that would imply predictability. One cointegrating relation is found allowing the use of a vector error correction model to examine the transmission of shocks to the underlying prices, the exchange rate, and the US market index. The main finding of this paper is that in the short run, the underlying share price seems to adjust after changes in the ADR price, pointing to the fact that the NYSE (trading market for the ADR) leads the Colombian market.  However, in the long run, both, the underlying share price and the ADR price, adjust to changes in one another

Corporate governance in emerging markets and its impact on finance performance

This paper reviews the theoretical framework of Corporate Governance and multiple issues in which it is evaluated such as agency costs, asymmetric information, insider trading, manipulation of earnings, Board of Directors, etc. Finally, it is reviewed the impact of Corporate Governance over cost of equity, capital structure and financial performance

SOCIEDAD COLOMBIANA DE JUEGOS Y APUESTAS S.A. BURKENROAD REPORT

Este artículo presenta un reporteBurkenroad de la empresa SociedadColombiana de Juegos y ApuestasS.A.", compañía caleña pertenecienteal sector de juegos de suerte y azar,cuya actividad es la explotación deapuestas permanentes o chance. Estaempresa nació de la fusión de 18 delas 20 empresas dedicadas a estaactividad en la ciudad de Cali, con elobjetivo de fortalecerse para ganar lalicitación que otorga el Departamentodel Valle del Cauca para el desarrollode esta actividad en los próximos 5años.Este reporte contiene una breve descripciónde la compañía, así como delmercado donde opera, un resumenadministrativo y un análisis de losriesgos que la organización enfrenta.Además, el reporte finaliza con elvalor aproximado de la empresa a travésdel Método de Flujo de Caja Libreen dos escenarios, donde se muestracomo más factible el segundo, en elcual la valoración sugiere un preciode $2.04 por acción."Reporte Burkenroad, Chance, Apuestas,Valoración.

Gestión de riesgos financieros. Experiencia en un banco latinoamericano

El presente documento busca presentar los principales conceptos de riesgos financieros presentes en la banca; en particular, se trabajará el caso de un banco peruano, considerando aspectos tales como la gestión de riesgos, Basilea III y la crisis económica internacional. El caso se desarrolla en el primer semestre del 2012 en el mercado peruan

Stock exchange in emerging markets: integrated latin america market (MILA) -an opportunity for investment

The paper is an overview about the Integrated Latin America Market (MILA) until December 2014, including the Mexico Stock Market in the analysis. The papers describes how the market has been developing during the last five years, showing some aspects about the market capitalization, the most traded shares and the S&P MILA Andean 40 index. Besides the paper shows the benefits about the MILA to investors and the relation between the stock exchange index and the exchange rate in those markets, using a correlation model

Repressor CopG prevents access of RNA polymerase to promoter and actively dissociates open complexes

Replication of the promiscuous plasmid pMV158 requires expression of the initiator repB gene, which is controlled by the repressor CopG. Genes repB and copG are co-transcribed from promoter Pcr. We have studied the interactions between RNA polymerase, CopG and the promoter to elucidate the mechanism of repression by CopG. Complexes formed at 0°C and at 37°C between RNA polymerase and Pcr differed from each other in stability and in the extent of the DNA contacted. The 37°C complex was very stable (half-life of about 3 h), and shared features with typical open complexes generated at a variety of promoters. CopG protein repressed transcription from Pcr at two different stages in the process leading to the initiation complex. First, CopG hindered binding of RNA polymerase to the promoter. Second, CopG was able to displace RNA polymerase once the enzyme has formed a stable complex with Pcr. A model for the CopG-mediated disassembly of the stable RNA polymerase–Pcr promoter complex is presented

Exposition to Factors of the Investment Funds Market in Brazil

ABSTRACT The growth of the investment funds industry in Brazil and its international representativeness indicate the relevance of analyzing this sector. Literature has shown the effects that market factors can have on the performance of investment funds. One way of evaluating the relation between funds' returns and market factors' variations is the return-based style analysis. In this context, this research aimed to investigate, through the style analysis, the exposition to various market factors in two modalities of investment funds. With this analysis, we may infer differences between the allocations and the composition of portfolios, constructing a panorama of sensitivity of funds' returns to the market factors addressed in the study. The database consisted of daily returns of 508 funds, out of which 385 are fixed income funds and 123 are Neutral Long & Short multimarket funds, within the period from January 3, 2005, to July 11, 2014. Through the style analysis, with 6 market factors, we found a difference between the composition of portfolios of multimarket funds and portfolios of fixed income funds. Regarding the evolution of the composition of portfolios in these funds, we observed that the investment style of funds does not seem to be constant over time, something which may be a positive evidence concerning the changes that managers promote in their portfolios, seeking to achieve better profitability indicators